Notice2022-03266
Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Reporting Obligations on Foreign Bank Relationships With Iranian-Linked Financial Institutions Designated Under IEEPA and IRGC-Linked Persons Designated Under IEEPA
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 an existing Bank Secrecy Act regulation. Specifically, the regulation requires that upon receiving a written request from FinCEN, a U.S. bank that maintains a correspondent account for a specified foreign bank must ask the foreign bank, and report to FinCEN, about transactions or other financial services provided by that foreign bank to Iranian-linked financial institutions designated under the International Emergency Economic Powers Act (IEEPA) and Islamic Revolutionary Guard Corps (IRGC)-linked persons designated under IEEPA. This request for comments is made pursuant to the Paperwork Reduction Act of 1995.
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 8930-8935]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-03266]
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DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request; Renewal Without Change of Reporting Obligations on
Foreign Bank Relationships With Iranian-Linked Financial Institutions
Designated Under IEEPA and IRGC-Linked Persons Designated Under IEEPA
AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.
ACTION: Notice and request for comments.
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SUMMARY: As part of its continuing effort to reduce paperwork and
respondent burden, FinCEN invites comments on the proposed renewal,
without change,
[[Page 8931]]
of a currently approved information collection found in an existing
Bank Secrecy Act regulation. Specifically, the regulation requires that
upon receiving a written request from FinCEN, a U.S. bank that
maintains a correspondent account for a specified foreign bank must ask
the foreign bank, and report to FinCEN, about transactions or other
financial services provided by that foreign bank to Iranian-linked
financial institutions designated under the International Emergency
Economic Powers Act (IEEPA) and Islamic Revolutionary Guard Corps
(IRGC)-linked persons designated under IEEPA. This request for comments
is made pursuant to the Paperwork Reduction Act of 1995.
DATES: Written comments are welcome, and must be received on or before
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-2022-0005 and the specific Office of Management and Budget (OMB)
control number 1506-0066.
<bullet> Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2022-0005 and OMB control number 1506-0066.
Please submit comments by one method only. Comments will be
reviewed consistent with the Paperwork Reduction Act of 1995 and
applicable OMB regulations and guidance. 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#690f1b0a290f00070a0c07470e061f"><span class="__cf_email__" data-cfemail="1c7a6e7f5c7a75727f7972327b736a">[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 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 Comprehensive Iran Sanctions, Accountability, and Divestment
Act of 2010 (CISADA) amended the Iran Sanctions Act of 1996 by
expanding economic sanctions against Iran. To comply with the
Congressional mandate to prescribe regulations under section 104(e) of
CISADA and consistent with its statutory mission under 31 U.S.C. 310,
FinCEN issued a regulation requiring a U.S. bank \4\ that maintains a
correspondent account \5\ for a specified foreign bank \6\ to ask of
the foreign bank, and report to FinCEN, certain information about
transactions or other financial services provided by that foreign bank.
Under the regulation, U.S. banks are only required to report this
information to FinCEN upon receiving a specific written request from
FinCEN (``CISADA Request''). The regulation implementing section 104(e)
of CISADA appears at 31 CFR 1060.300.
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\4\ 31 CFR 1010.100(d). A bank is defined as each agent, agency,
branch or office within the United States of any person doing
business in one or more of the capacities listed below: (1) A
commercial bank or trust company organized under the laws of any
State or of the United States; (2) a private bank; (3) a savings and
loan association or a building and loan association organized under
the laws of any State or of the United States; (4) an insured
institution as defined in section 401 of the National Housing Act;
(5) a savings bank, industrial bank or other thrift institution; (6)
A credit union organized under the law of any State or of the United
States; (7) any other organization (except a money services
business) chartered under the banking laws of any state and subject
to the supervision of the bank supervisory authorities of a State;
(8) a bank organized under foreign law; (9) any national banking
association or corporation acting under the provisions of section
25(a) of the Act of Dec. 23, 1913, as added by the Act of Dec. 24,
1919, ch. 18, 41 Stat. 378, as amended (12 U.S.C. 611-32).
\5\ 31 CFR 1010.605(c)(1)(ii). For purposes of 31 CFR 1010.630,
a correspondent account is defined as an account established for a
foreign bank to receive deposits from, or to make payments or other
disbursements on behalf of, the foreign bank, or to handle other
financial transactions related to such foreign bank.
\6\ 31 CFR 1010.100(u). A foreign bank is defined as a bank
organized under foreign law, or an agency, branch or office located
outside the United States of a bank. The term does not include an
agent, agency, branch or office within the United States of a bank
organized under foreign law.
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(a) General
Upon receiving a CISADA Request, a U.S. bank that maintains a
correspondent account for a specified foreign bank is required under 31
CFR 1060.300(a) to inquire of the foreign bank, and report to FinCEN:
(i) Any correspondent account maintained by such foreign bank for an
Iranian-linked financial institution designated under IEEPA (``Iranian-
linked Financial Institution''); \7\ (ii) any direct or indirect
transfer of funds for or on behalf of an Iranian-linked Financial
Institution processed by such foreign bank within the preceding 90
calendar days, other than through a correspondent account; (iii) and
any direct or indirect transfer of funds for or on behalf of an IRGC-
linked person designated under IEEPA (``IRGC-linked Person'') \8\
processed by such foreign bank within the preceding 90 calendar days.
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\7\ For purposes of 31 CFR 1060.300, ``Iranian-linked financial
institution designated under IEEPA'' means a financial institution
designated by the U.S. Government pursuant to IEEPA (or listed in an
annex to an Executive order issued pursuant to IEEPA) in connection
with Iran's proliferation of weapons of mass destruction or delivery
systems for weapons of mass destruction, or in connection with
Iran's support for international terrorism.
\8\ For purposes of 31 CFR 1060.300, an ``IRGC-linked person
designated under IEEPA'' means the IRGC or any of its agents or
affiliates designated by the United States Government pursuant to
IEEPA (or listed in an annex to an Executive order issued pursuant
to IEEPA).
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(b) Duty To Inquire
31 CFR 1060.300(b) requires that, upon receiving a CISADA Request,
a U.S. bank that maintains a correspondent account for a specified
foreign bank must contact the foreign bank and request that the foreign
bank certify whether it: (i) Maintains a correspondent account for an
Iranian-linked Financial Institution; (ii) has processed one or more
transfers of funds within the preceding 90 calendar days, directly or
indirectly, for or on behalf of an Iranian-linked Financial
Institution, other than through a correspondent
[[Page 8932]]
account; and (iii) has processed one or more transfer of funds within
the preceding 90 calendar days, directly or indirectly, for or on
behalf of an IRGC-linked Person. In addition, at the time the U.S. bank
contacts the foreign bank, the U.S. bank is required to request that
the foreign bank agree to notify the U.S. bank if the foreign bank
subsequently establishes a new correspondent account for an Iranian-
linked Financial Institution within 365 calendar days from the date of
the foreign bank's initial response.
FinCEN has developed an optional certification form \9\ that
includes a request to the foreign bank for information required under
31 CFR 1060.300. U.S. banks may use the certification form to obtain
the necessary information from the foreign bank.
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\9\ Available at <a href="https://www.fincen.gov/sites/default/files/federal_register_notice/CISADA_Certification.pdf">https://www.fincen.gov/sites/default/files/federal_register_notice/CISADA_Certification.pdf</a>.
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(c) Filing Procedures
Upon receiving a CISADA Request, 31 CFR 1060.300(c)(1) requires
that a U.S. bank report to FinCEN, in the format and manner prescribed
by FinCEN, the following information for any specified foreign banks
for which the U.S. bank maintains correspondent accounts:
<bullet> The name of any foreign bank that certifies that it
maintains a correspondent account for an Iranian-linked Financial
Institution, and the following related information: The name of the
Iranian-linked Financial Institution; the full name(s) on the
correspondent account and the correspondent account number(s); any
information regarding whether the correspondent account has been
blocked or restricted; other applicable identifying information for the
correspondent account; and the approximate value in U.S. dollars of
transactions processed through the correspondent account within the
preceding 90 calendar days;
<bullet> The name of any foreign bank that certifies that it has
processed one or more transfers of funds within the preceding 90
calendar days for or on behalf of, directly or indirectly, an Iranian-
linked Financial Institution, other than through a correspondent
account, and the following related information: The name of the
Iranian-linked Financial Institution; the identity of the system or
means by which such transfer(s) of funds was processed; the full name
on the account(s) and the account number(s), other applicable
identifying information for such transfer(s) of funds; and the
approximate value in U.S. dollars of such transfer(s) of funds
processed within the preceding 90 calendar days;
<bullet> The name of any foreign bank that certifies that it has
processed one or more transfers of funds within the preceding 90
calendar days directly or indirectly for or on behalf of an IRGC-linked
Person, and the following related information: The name of the IRGC-
linked Person; the identity of the system or means by which such
transfer(s) of funds was processed; the full name on the account(s) and
the account number(s); other applicable identifying information for
such transfer(s) of funds; and the approximate value in U.S. dollars of
such transfer(s) of funds processed within the preceding 90 calendar
days;
<bullet> The name of any foreign bank that certifies that it does
not maintain a correspondent account for an Iranian-linked Financial
Institution; that certifies that to its knowledge it has not processed
one or more transfers of funds within the preceding 90 calendar days
for or on behalf of, directly or indirectly, an Iranian-linked
Financial Institution, other than through a correspondent account; and/
or that certifies that to its knowledge it has not processed one or
more transfers of funds within the preceding 90 calendar days directly
or indirectly for or on behalf of an IRGC-linked Person;
<bullet> The name of any foreign bank for which the U.S. bank is
unable to determine if the foreign bank: (i) Maintains a correspondent
account for an Iranian-linked Financial Institution; (ii) has processed
one or more transfers of funds within the preceding 90 calendar days
directly or indirectly for or on behalf of an Iranian-linked Financial
Institution, other than through a correspondent account; and/or (iii)
has processed one or more transfers of funds within the preceding 90
calendar days directly or indirectly for or on behalf of an IRGC-linked
Person. In addition, the U.S. bank must provide an explanation of the
reason(s) the U.S. bank cannot determine if the foreign bank has
provided financial services to an Iranian-linked Financial Institution
or an IRGC-linked Person, for example, if the foreign bank fails to
respond to a request from the U.S. bank;
<bullet> The name of any foreign bank that notifies the U.S. bank
that it has established a new correspondent account for an Iranian-
linked Financial Institution at any time within 365 calendar days from
the date of the foreign bank's initial response, and the following
related information: The name of the Iranian-linked Financial
Institution; the full name(s) on the correspondent account and the
correspondent account number(s); applicable information regarding
whether the correspondent account has been blocked or restricted; and
other applicable identifying information for the correspondent account;
<bullet> If applicable, confirmation that the U.S. bank does not
maintain a correspondent account for the foreign bank(s), but only in
instances in which FinCEN specifically requests that the U.S. bank
report such information; and
<bullet> If applicable, the name of any foreign bank that provides
a certification to the U.S. bank more than 45 calendar days after the
date of FinCEN's request, along with all applicable related information
associated with that certification.
31 CFR 1060.300(c)(2) requires that a U.S. bank report to FinCEN
within 45 calendar days of receipt of a CISADA Request. U.S. banks must
also report to FinCEN within 10 calendar days of receipt of any
subsequent notifications received from a foreign bank regarding the
establishment of a new correspondent account for an Iranian-linked
Financial Institution. For reports based on certifications received
from a foreign bank after the 45 calendar day deadline, U.S. banks are
required to report to FinCEN within 10 calendar days of receipt of the
certification.
(d) Retention of Records
31 CFR 1060.300(d) requires that U.S. banks maintain a copy of any
report filed and the original or any business record equivalent of any
supporting documentation for a report, including a foreign bank
certification or other responses to a FinCEN inquiry pursuant to 31 CFR
1060.300, for a period five years.
(e) No Other Action Required
31 CFR 1060.300(e) states that nothing under 31 CFR 1060.300 shall
be construed to require a U.S. bank to take any action, or to decline
to take any action, other than the requirements identified in 31 CFR
1060.300, with respect to an account established for, or a transaction
engaged in with, a foreign bank. However, nothing in 31 CFR 1060.300
relieves a U.S. bank of any other applicable regulatory obligations.
II. Paperwork Reduction Act of 1995 (PRA) <SUP>10</SUP>
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\10\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
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Title: Reporting obligations on foreign bank relationships with
Iranian-linked financial institutions designated under IEEPA and IRGC-
linked persons
[[Page 8933]]
designated under IEEPA (31 CFR 1060.300).
OMB Control Number: 1506-0066.
Report Number: Optional form--certification for purposes of section
104(e) of CISADA and 31 CFR 1060.300.
Abstract: FinCEN is issuing this notice to renew the OMB control
number for the regulation that requires that upon receiving a CISADA
Request, a U.S. bank that maintains a correspondent account for a
specified foreign bank must inquire with the foreign bank, and report
to FinCEN, with respect to transactions or other financial services
provided by that foreign bank to Iranian-linked Financial Institutions
and IRGC-linked Persons.
Affected Public: Businesses or other for-profit institutions, and
non-profit institutions.
Type of Review:
<bullet> Renewal without change of a currently approved information
collection.
Frequency: As required.
Estimated Number of Potential Respondents: 5,164 banks.\11\
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\11\ Data are from the Federal Reserve's Structured Data for
U.S. Banking Offices (see FRB: Structure Data for U.S. Banking
Offices of Foreign Entities (<a href="http://federalreserve.gov">federalreserve.gov</a>)) and quarterly call
report bank data (specifically, Schedule RC-E: Deposit liabilities,
line 5: Liabilities of banks in foreign countries) from the
Financial Institution Retrieval Data System (FINDRS). Using these
two sources, FinCEN determines that as of Q3 2021, approximately
5,164 banking organizations (national and state banks, trusts,
thrifts and savings and loans, branches and agencies of foreign
banking organizations, representative offices, Edge Act
corporations, and agreement corporations) will be affected by this
rule on any given year. Specifically, we determine that there are
approximately: 190 branches and agencies of foreign banks; 115
representative offices, Edge Act corporations, and agreement
corporations; and 4,859 U.S. banks (national and state chartered,
trusts, savings and loans, thrifts) that report values for deposit
liabilities of banks in foreign countries. Deposit liabilities in a
foreign country is an indication that a bank maintains at least one
correspondent account with a foreign financial institution.
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Estimated Number of Responses: 1,040 responses.\12\
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\12\ Table 1 below sets forth a breakdown of the number and type
of responses by banks.
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Historically, since this regulation was implemented in 2011, FinCEN
has used this authority in limited circumstances. For that reason,
FinCEN conservatively estimates that on average around one percent of
U.S. banks (i.e., approximately 52 U.S. banks) \13\ that maintain
correspondent accounts for foreign banks will maintain correspondent
accounts for foreign banks that FinCEN may request information about
under 31 CFR 1060.300: This estimate is based on the fact that foreign
banks generally only hold a limited number of correspondent account
relationships with separate U.S. banks. In order to further reduce the
number of affected banks, when possible, FinCEN relies on information
available to Treasury, or publicly available, to help limit the number
of U.S. banks requested to provide information with respect to the
foreign banks that are the subject of specific requests. In turn,
FinCEN intends to continue to send requests directly to U.S. banks that
FinCEN, based on all available information, believes maintain
correspondent accounts for the specified foreign bank(s). If FinCEN
makes a CISADA Request relating to approximately 10 foreign banks per
year, and on average 52 U.S. banks are required to respond to such a
request, U.S. banks will provide 520 CISADA-related reports per year to
FinCEN. Each time a U.S. bank receives a CISADA Request from FinCEN,
the U.S. bank will incur: A reporting burden associated with 31 CFR
1060.300(b) (inquiry) and 31 CFR 1060.300(c) (reporting); and a
recordkeeping burden associated with 31 CFR 1060.300(d) (record
retention). FinCEN estimates that the average burden associated with:
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\13\ 5,164 U.S. banks multiplied by one percent equals 51.64,
which is round to 52 U.S. banks.
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<bullet> 31 CFR 1060.300(b) is one hour per U.S. bank, because the
U.S. bank can send the optional certification form to the foreign bank;
<bullet> 31 CFR 1060.300(c) is one hour per U.S. bank, because the
U.S. bank can submit the responses from the foreign bank to FinCEN
electronically; and
<bullet> 31 CFR 1060.300(d) is one hour per U.S. bank to maintain
the records received from the foreign bank and transmitted to the U.S.
bank.
These estimates result in a total estimated average burden of three
hours per U.S. bank with respect to each CISADA Request.
In certain instances, FinCEN may request that, if a U.S. bank
receives a CISADA Request from FinCEN, and the U.S. bank does not
maintain a correspondent account for the foreign bank specified in the
CISADA Request, the U.S. bank report this information to FinCEN. As
noted above, FinCEN intends to send CISADA Requests primarily to U.S.
banks that FinCEN is already aware have a correspondent account for a
specified foreign bank. In instances in which FinCEN is not aware of
which U.S. banks maintain a correspondent account for a specified
foreign bank, FinCEN may send CISADA Requests to those U.S. banks
FinCEN believes might have a correspondent account for a specified
foreign bank. In instances where FinCEN is sending a CISADA Request to
a small number of U.S. banks that FinCEN believes might maintain a
correspondent account for a specified foreign bank, FinCEN may request,
in the CISADA Request, that the U.S. banks that do not maintain a
correspondent account for the specified foreign bank report such
information to FinCEN. FinCEN believes that the estimated average
reporting burden for a bank to report to FinCEN that it does not
maintain a correspondent account for the foreign bank specified in
CISADA Request will be approximately 30 minutes per request. Such
responses can be submitted to FinCEN electronically. FinCEN also
estimates that across the 10 requests FinCEN anticipates making
annually, on average one percent of U.S. banks (52 banks) will receive
a CISADA Request from FinCEN regarding foreign banks for which the U.S.
banks do not maintain correspondent accounts. This means that
approximately 52 U.S. banks will be required to report that they do not
maintain a correspondent account for a foreign bank specified in a
CISADA Request in any given year. If FinCEN makes a CISADA Request
relating to approximately 10 foreign banks per year, and on average 52
U.S. banks are required to respond to such a request, U.S. banks will
provide 520 CISADA-related reports per year to FinCEN.
Estimated Number of Responses: 1,040 responses as described in
Table 1.
[[Page 8934]]
Table 1--Breakdown of the Estimated Number of U.S. Banks That Have a Correspondent Account With a Specified
Foreign Bank, Versus the Estimated Number of Banks That Do Not Have a Correspondent Account for a Specified
Foreign Bank
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Number of reports from U.S. banks
Number of reports from U.S. banks that that do not maintain a Estimated number of CISADA- related
maintain a correspondent account for a correspondent account for a reports submitted to FinCEN
specified foreign bank in a CISADA specified foreign bank in a CISADA annually as a result of inquiries
request \14\ request \15\ under 31 CFR 1060.300
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520................................... 520 1,040
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Estimated Recordkeeping and Reporting Burden:
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\14\ One percent of banks (52) multiplied by 10 CISADA Request
per U.S. bank equals 520 CISADA-related reports.
\15\ One percent of banks (52) multiplied by 10 CISADA Request
per U.S. bank equals 520 CISADA-related reports.
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FinCEN provides U.S. banks an optional certification form to send
to the foreign banks to collect the information required to be reported
to FinCEN pursuant to 31 CFR 1060.300. In addition, FinCEN has
historically allowed U.S. banks to submit their responses to FinCEN
electronically.
FinCEN's estimate of the annual PRA burden, therefore, is 1,820
hours, as detailed in Table 2 below:
Table 2--Estimated Hourly Burden Associated With Complying With 31 CFR 1060.300
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Total number of Total burden hours
Type of CISADA-related report CISADA-related Burden hours per U.S. bank per type of CISADA-
reports per type related report
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Inquire with a foreign bank for 520 3 hours....................... 1,560
which the U.S. bank maintains a
correspondent account, and report
the foreign bank's responses to
FinCEN.
Report to FinCEN that the U.S. bank 520 30 minutes.................... 260
does not maintain a correspondent
account for the specified foreign
bank.
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Total Burden Hours.............. .................... .............................. 1,820
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To calculate the hourly costs of the burden estimate, FinCEN
identified six roles and corresponding staff positions involved in
obtaining, reviewing, and maintaining information from foreign banks:
(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 certification
documents are in legal compliance); and (vi) computer support (ensuring
certification documents can be properly stored, retrieved, and
electronically submitted to FinCEN).
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),\16\ and computing an additional benefits cost as
follows:
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\16\ 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.
\17\ 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>)).
\18\ General oversight may include board of directors/trustees
approval.
\19\ 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.
Table 3--Fully-Loaded Hourly Wage by Role and BLS Job Position for All Financial Institutions Covered by This
Notice
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Mean hourly Fully-loaded
Role BLS-code BLS-name wage \17\ Benefit factor hourly wage
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General oversight \18\........ 11-1010 Chief Executive $107.12 1.42 $152.11
\19\.
General supervision........... 11-3031 Financial 74.59 1.42 105.92
Manager.
Direct supervision............ 13-1041 Compliance 35.81 1.42 50.85
Officer.
Clerical work (research, 43-3099 Financial Clerk. 23.27 1.42 33.04
review, 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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[[Page 8935]]
FinCEN estimates that, in general and on average,\20\ each role
would spend different amounts of time on each portion of the
traditional annual PRA burden, as follows:
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\20\ By ``in general,'' FinCEN means without regard to outliers
(e.g., U.S. banks that maintain correspondent accounts for a large
number of foreign banks that FinCEN may submit a CISADA Request
for). By ``on average,'' FinCEN means the mean of the distribution
of each subset of the population.
Table 4--Weighted Average Hourly Cost Associated With Complying With 31
CFR 1060.300
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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
------------------------------------------------------------------------
* $95.67 rounded to $96.00.
The total estimated cost of the annual PRA burden is 174,720, as
reflected in Table 5 below.
Table 5--Total Cost of Traditional Annual PRA Burden
----------------------------------------------------------------------------------------------------------------
Steps Hourly burden Hourly cost Total cost
----------------------------------------------------------------------------------------------------------------
Inquire with a foreign bank for which the U.S. bank maintains a \21\ 1,560 \22\ $96.00 $149,760
correspondent account, and report the foreign bank's responses
to FinCEN......................................................
Report to FinCEN that the U.S. bank does not maintain a \23\ 260 \24\ 96.00 24,960
correspondent account for the specified foreign bank...........
-----------------------------------------------
Total Cost.................................................. .............. .............. 174,720
----------------------------------------------------------------------------------------------------------------
Estimated Recordkeeping and Reporting Burden: The average estimated
annual PRA burden, measured in hours per respondent, is three hours for
a U.S. bank that maintains a correspondent account for a specified
foreign bank about which FinCEN inquires, and thirty minutes per U.S.
bank that does not maintain a correspondent account for a specified
foreign bank about which FinCEN inquires.
---------------------------------------------------------------------------
\21\ See Table 2.
\22\ See Table 4.
\23\ See Table 2.
\24\ See Table 4.
---------------------------------------------------------------------------
Estimated Total Annual Responses: 1,040 responses, as set out in
Table 1.
Estimated Total Annual Recordkeeping Burden: The estimated total
annual PRA burden is 1,820 hours, as set out in Table 2.
Estimated Total Annual Recordkeeping Cost: The estimated total
annual PRA cost is $174,720, 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.
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. 2022-03266 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.