Notice2022-06157
Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of the Report of International Transportation of Currency or Monetary Instruments; FinCEN Report 105
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Published
March 23, 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, FinCEN invites comments on a renewal, without change, of existing information collection requirements for the Report of International Transportation of Currency or Monetary Instruments (CMIR). Although no changes are proposed to the information collection itself, this request for comments covers a proposed updated burden estimate for the information collection. This request for comments is made pursuant to the Paperwork Reduction Act of 1995 (PRA).
Full Text
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<title>Federal Register, Volume 87 Issue 56 (Wednesday, March 23, 2022)</title>
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[Federal Register Volume 87, Number 56 (Wednesday, March 23, 2022)]
[Notices]
[Pages 16548-16551]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-06157]
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DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request; Renewal Without Change of the Report of International
Transportation of Currency or Monetary Instruments; FinCEN Report 105
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, FinCEN invites
comments on a renewal, without change, of existing information
collection requirements for the Report of International Transportation
of Currency or Monetary Instruments (CMIR). Although no changes are
proposed to the information collection itself, this request for
comments covers a proposed updated burden estimate for the information
collection. This request for comments is made pursuant to the Paperwork
Reduction Act of 1995 (PRA).
DATES: Written comments are welcome, and must be received on or before
May 23, 2022.
ADDRESSES: Comments may be submitted by any of the following methods:
<bullet> Federal E-rulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Follow the instructions for submitting comments. Refer to Docket Number
FINCEN-2022-0006 and the specific Office of Management and Budget (OMB)
control numbers 1506-0014.
<bullet> Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2022-0006 and OMB control number 1506-0014.
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#fb9d8998bb9d9295989e95d59c948d"><span class="__cf_email__" data-cfemail="e4829687a4828d8a87818aca838b92">[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
[[Page 16549]]
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 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.
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31 U.S.C. 5316 requires, with limited exceptions, that a person, or
an agent or bailee of the person, file a report when the person, agent,
or bailee knowingly: (i) Transports, is about to transport, or has
transported monetary instruments \4\ of more than $10,000 at one time
from a place in the United States to or through a place outside the
United States, or to a place in the United States from or through a
place outside the United States; or (ii) receives monetary instruments
of more than $10,000 at one time transported into the United States
from or through a place outside the United States. The regulations
implementing this statutory requirement are found at 31 CFR 1010.340.
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\4\ For purposes of 31 U.S.C. 5316, monetary instruments is
defined in 31 U.S.C. 5312(a)(3) as amended by section 6102(d)(1)(C)
of the AML Act.
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31 CFR 1010.340(a) requires each person \5\ who physically
transports, mails, or ships, or causes to be physically transported,
mailed or shipped, or attempts to cause to be physically transported,
mailed or shipped, currency \6\ or other monetary instruments \7\ in an
aggregate amount exceeding $10,000 at one time from the United States
to any place outside the United States, or into the United States from
any place outside the United States, to file a CMIR.\8\
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\5\ FinCEN regulations define a ``person'' as an individual, a
corporation, partnership, a trust or estate, a joint stock company,
an association, a syndicate, joint venture or other unincorporated
organization or group, an Indian Tribe (as that term is defined in
the Indian Gaming Regulatory Act), and all entities cognizable as
legal personalities. 31 CFR 1010.100(mm).
\6\ FinCEN regulations define currency in 31 CFR 1010.100(m).
\7\ FinCEN regulations define monetary instruments in 31 CFR
1010.100(dd).
\8\ A person is deemed to have caused such transportation,
mailing or shipping when he or she aids, abets, counsels, commands,
procures, or requests it to be done by a financial institution or
any other person. 31 CFR 1010.340(a).
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31 CFR 1010.340(b) requires each person in the United States who
receives at any one time currency or other monetary instruments
exceeding $10,000 in the aggregate, which have been transported,
mailed, or shipped to such person from any place outside the United
States, to file a CMIR if the CMIR has not already been filed pursuant
to 31 CFR 1010.340(a). The CMIR must include the amount, the date of
receipt, the form of monetary instruments, and the person from whom the
funds were received.
31 CFR 1010.340(c) includes a list of persons that are not required
to file a CMIR, even if they satisfy the conditions of 31 CFR
1010.340(a) or (b). 31 CFR 1010.340(d) clarifies that a transfer of
funds through normal banking procedures, which does not involve the
physical transportation of currency or monetary instruments, is not
required to be reported on the CMIR.
According to the CMIR instructions, each person who receives
currency or other monetary instruments in the United States must file a
CMIR within 15 days after receipt of the currency or monetary
instruments with the United States Customs and Border Protection (CBP)
officer in charge at any port of entry or departure, or by mail.\9\
Travelers carrying currency or other monetary instruments with them
must file the CMIR at the time they enter the United States or at the
time they depart the United States with the CBP officer in charge at
any port of entry or departure.\10\
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\9\ See FinCEN Report 105--CMIR, General Instructions at <a href="https://www.fincen.gov/sites/default/files/shared/fin105_cmir.pdf">https://www.fincen.gov/sites/default/files/shared/fin105_cmir.pdf</a>.
\10\ In early 2020, CBP implemented a web-based platform for the
electronic completion of CMIRs by travelers transporting their own
currency or monetary instruments. Travelers using this platform must
still present the evidence of the electronic completion of the
report to the CBP officer in charge at any port of entry or
departure. See <a href="https://fincen105.cbp.dhs.gov/#/">https://fincen105.cbp.dhs.gov/#/</a>.
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A transportation, mailing, or shipping of currency or monetary
instruments does not need to be reported if any other participants in
that cross-border transportation, mailing, or shipping previously filed
a complete and accurate CMIR. If, however, a complete and accurate CMIR
has not been filed with respect to a given transaction, no person
required to file the CMIR will be excused for failure to do so.
A person transporting their own currency or monetary instruments (a
``traveler'') in excess of $10,000, or shipping, mailing, or receiving
such value on their own behalf, must provide their own information when
completing the CMIR. In completing a CMIR, a person acting for anyone
else when transporting, shipping, mailing, or receiving currency or
monetary instruments (a ``currency transporter'') in excess of $10,000
must provide (a) the person's own information, and (b) information
about (i) the person on whose behalf the transaction was conducted,
(ii) the person from whom the currency or monetary instruments were
received, and/or (iii) the person to whom the currency or monetary
instruments were shipped.\11\
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\11\ See supra note 9. See also, FIN-2014-G002, CMIR guidance
for common carriers of currency, including armored car services,
Aug.1, 2014. See <a href="https://www.fincen.gov/resources/statutes-regulations/guidance/cmir-guidance-common-carriers-currency-including-armored">https://www.fincen.gov/resources/statutes-regulations/guidance/cmir-guidance-common-carriers-currency-including-armored</a>.
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II. Paperwork Reduction Act of 1995 (PRA) <SUP>12</SUP>
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\12\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
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Title: Reports of transportation of currency or monetary
instruments (31 CFR 1010.340).
OMB Control Numbers: 1506-0014.
Report Number: FinCEN Report 105--Report of International
Transportation of Currency or Monetary Instruments (CMIR).\13\
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\13\ A copy of the CMIR can be found on FinCEN's website at
<a href="https://www.fincen.gov/sites/default/files/shared/fin105_cmir.pdf">https://www.fincen.gov/sites/default/files/shared/fin105_cmir.pdf</a>. A
copy of the CMIR can also be found on the CBP website at <a href="https://fincen105.cbp.dhs.gov/#/">https://fincen105.cbp.dhs.gov/#/</a>.
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Abstract: FinCEN is issuing this notice to renew the OMB control
number for the CMIR regulations and report.
Affected Public: Individuals and entities.
Type of Review:
<bullet> Renewal without change of a currently approved information
collection.
Frequency: As required.
Estimated Number of Respondents: 184,709 reports (average number of
CMIRs filed annually over the period 2017-2019).\14\
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\14\ See Tables 1 and 2 below.
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Estimated Reporting and Recordkeeping Burden: FinCEN estimates that
the total annual burden and cost to comply with the CMIR
[[Page 16550]]
regulations, in hours and dollars, is the sum of the following
estimates:
(a) The total number of CMIRs filed annually;
(b) The time and cost for travelers to report transporting,
mailing, shipping, or receiving their own currency or monetary
instruments;
(c) The time and cost for currency transporters to report
transporting, mailing, shipping, or receiving currency or monetary
instruments on behalf of others;
(d) The cost to CBP to receive, review, and process CMIRs; and
(e) The cost to FinCEN to upload and store CMIRs.
1. Estimate of Number of CMIRs Filed Annually
Using CBP data, FinCEN identified the number of CMIRs filed over
the past five years, broken down by the dollar amount reported on
individual CMIRs.
Table 1--CMIRs Filed Between 2017-2021, by CMIR Reporting Amount
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Year
CMIR reporting amount -------------------------------------------------------------------------------- Grand total
2017 2018 2019 2020 2021(*)
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$10 million and above................................... 1,761 2,140 2,101 899 306 7,207
$1 million and above.................................... 5,960 6,678 6,932 3,086 2,910 25,566
$500,000 and above...................................... 2,653 2,893 2,915 1,637 1,817 11,915
$250,000 and above...................................... 2,953 3,123 2,780 1,635 1,556 12,047
$100,000 and above...................................... 4,684 4,784 4,270 2,201 2,847 18,786
$50,000 and above....................................... 10,674 9,997 9,452 4,921 5,834 40,878
$10,000 and above....................................... 169,474 152,318 145,586 59,520 79,428 606,326
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Total CMIRs per Year................................ 198,159 181,933 174,036 73,899 94,698 722,725
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(*) Up to and including November 2021.
Because the COVID-19 pandemic severely impacted cross-border travel
during 2020 and, to a lesser degree, 2021, FinCEN restricted its
average annual CMIR reporting estimate to the average number of CMIRs
filed between 2017-2019.
Table 2--Average Number of CMIRs Filed Between 2017-2019, by CMIR Reporting Amount
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Year
CMIR reporting amount ------------------------------------------------ Grand total Average Tiers Percent
2017 2018 2019
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$10 million and above................... 1,761 2,140 2,101 6,002 2,001 14,296 7.74
$1 million and above.................... 5,960 6,678 6,932 19,570 6,523
$500,000 and above...................... 2,653 2,893 2,915 8,461 2,820
$250,000 and above...................... 2,953 3,123 2,780 8,856 2,952
$100,000 and above...................... 4,684 4,784 4,270 13,738 4,579 170,413 92.26
$50,000 and above....................... 10,674 9,997 9,452 30,123 10,041
$10,000 and above....................... 169,474 152,318 145,586 467,378 155,793
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Total CMIRs per Year................ 198,159 181,933 174,036 554,128 184,709 184,709 100.00
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FinCEN estimates that approximately 184,709 CMIRs are filed
annually.\15\ To calculate the different compliance burdens for
travelers filing CMIRs on their own behalf, and currency transporters
reporting transactions on behalf of other persons, FinCEN separated the
annual estimate into two tiers:
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\15\ See Table 2.
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(a) 14,296 CMIRs (or 7.74% of the total estimate) have reporting
amounts of $250,000 and above. FinCEN assesses that CMIRs reporting
$250,000 or more are likely CMIRs filed by currency transporters.
b) 170,413 CMIRs (or 92.26% of the total estimate) have reporting
amounts of less than $250,000. FinCEN assesses that CMIRs reporting
less than $250,000 are likely CMIRs filed by travelers on behalf of
themselves.
The information required to be reported on the CMIR is basic
identifying and transaction information which would be readily
accessible to a traveler or currency transporter. For instance, a
traveler only has to report identifying information on themselves. A
currency transporter has to report identifying information on itself,
as well as on the person or business on whose behalf the currency is
being transported. Both travelers and currency transporters are
required to report on the type and amount of the currency being
transported. For these reasons, FinCEN estimates that the completion of
a CMIR filed by travelers reporting transactions involving their own
currency or monetary instruments (including both the completion of the
report and the storing of a copy) will require 15 minutes, while the
completion of a CMIR filed by currency transporters will require 30
minutes.
2. Estimated Cost for Travelers Reporting Transactions Involving Their
Own Currency or Monetary Instruments
To estimate the cost of compliance with CMIR reporting requirements
for travelers, FinCEN used an average fully loaded wage rate of $38.44
per hour (composed of $27.07 per hour, the mean hourly wage for all
employees from the May 2020 National Occupational Employment and Wage
Estimates report,\16\ multiplied by a private
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industry benefits factor of 1.42).\17\ FinCEN estimates the annual
compliance cost of CMIRs filed by travelers reporting transactions
involving their own currency or monetary instruments at $1,637,669
(170,413 reports multiplied by the average fully loaded wage rate of
$38.44 per hour, multiplied by the ratio of 15 minutes/60 minutes,
rounded up to the nearest hour and dollar).
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\16\ See U.S. Bureau of Labor Statistics, National Occupational
Employment and Wage Estimates, (May 2020), available at <a href="https://www.bls.gov/oes/current/oes_nat.htm">https://www.bls.gov/oes/current/oes_nat.htm</a>.
\17\ The ratio between benefits and wages for private industry
workers is $10.83 (hourly benefits)/$25.80 (hourly wages) = 0.42.
The benefit factor is 1 plus the benefit/wages ratio, or 1.42. See
U.S. Bureau of Labor Statistics, Table 4. Employer Costs for
Employee Compensation for private industry workers by occupational
and industry group, (March 2021), available at <a href="https://www.bls.gov/news.release/ecec.t04.htm">https://www.bls.gov/news.release/ecec.t04.htm</a>.
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3. Estimated Cost for Currency Transporters Reporting Transactions
Involving Currency or Monetary Instruments Belonging to Others
To estimate the cost of compliance with CMIR reporting requirements
for currency transporters, FinCEN calculated an average weighted fully
loaded wage rate representing the participation of two different
employee levels in the preparation of the report: An operational level
that fills in the report, and a direct supervision level that controls
it.
Table 3--Fully-Loaded Hourly Wage Per Role and Bureau of Labor Statistics (BLS) Job Position
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Median hourly Fully-loaded
Role BLS-code BLS-name wage Benefit factor hourly wage
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Direct Supervision............ 13-1041 Compliance $34.18 1.42 $48.54
Officer.
Operations.................... 43-3071 Teller.......... 15.68 1.42 22.27
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Based on an allocation of twenty minutes (approximately 67% of the
total estimated time to complete and file a CMIR) for the operational
level to complete and store a copy of the report, and ten minutes
(approximately 33% of the total estimated time to complete and file a
CMIR) for the direct supervision level to compare the completed report
against transportation documents, the weighted fully loaded wage would
be:
Table 4--Weighted Fully Loaded Proportional Cost
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Direct supervision Operations Weighted
Component -------------------------------------------------------- average
Percent time Hourly cost Percent time Hourly cost hourly cost
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Recordkeeping and reporting............... 33% $48.54 67% $22.27 $31.03
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FinCEN estimates the annual compliance cost of CMIRs filed by
currency transporters reporting transactions conducted on behalf of
others, at $221,802 (14,296 reports multiplied by the weighted fully
loaded wage rate of $31.03, multiplied by the ratio of 30 minutes/60
minutes, rounded up to the nearest hour and dollar).
Estimated Number of Respondents: 184,709 (average number of CMIRs
filed over the period 2017-2019).
Estimated Burden per Respondent: 15 minutes per report filed by
travelers reporting transactions involving their own currency or
monetary instruments, and 30 minutes per report filed by currency
transporters reporting transactions on behalf of others.
Estimated Total Annual Burden Hours: 49,751 hours.\18\
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\18\ The sum of 170,413 reports * 15 minutes/60 minutes per
hour, and 14,296 reports * 30 minutes/60 minutes per hour, rounded
up to the nearest hour.
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Estimated Total Annual Cost to the Public: $1,859,471 ($1,637,669
for travelers and $221,802 for currency transporters).
Estimated Total Annual Cost to the Government: $1,434,835.29,
resulting from:
(a) CBP's processing cost: $1,416,364.39.\19\
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\19\ According to CBP, between July 1, 2020 and June 30, 2021,
processing paper CMIRs cost $1,116,364.39. According to CBP, the
annual cost to process electronic CMIRs is $300,000. ($1,116,364.39
+ $300,000 = $1,416,364.39).
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(b) FinCEN's upload and storing cost: $18,470.90 (the estimated
annual cost to FinCEN is $0.10 per report, times the estimated number
of annual reports (184,709 reports)).\20\
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\20\ The estimated cost to FinCEN per BSA report submitted to
FinCEN is $0.10.
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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. 2022-06157 Filed 3-22-22; 8:45 am]
BILLING CODE 4810-02-P
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