Notice2022-09098
Agency Information Collection Activities; Submission for OMB Review; Comment Request; Multiple Financial Crimes Enforcement Network Information Collection Requests
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 28, 2022
Issuing agencies
Treasury Department
Abstract
The Department of the Treasury will submit the following information collection requests to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995, on or after the date of publication of this notice. The public is invited to submit comments on these requests.
Full Text
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<title>Federal Register, Volume 87 Issue 82 (Thursday, April 28, 2022)</title>
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[Federal Register Volume 87, Number 82 (Thursday, April 28, 2022)]
[Notices]
[Pages 25353-25356]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-09098]
[[Page 25353]]
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DEPARTMENT OF THE TREASURY
Agency Information Collection Activities; Submission for OMB
Review; Comment Request; Multiple Financial Crimes Enforcement Network
Information Collection Requests
AGENCY: Departmental Offices, U.S. Department of the Treasury.
ACTION: Notice, request for comment.
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SUMMARY: The Department of the Treasury will submit the following
information collection requests to the Office of Management and Budget
(OMB) for review and clearance in accordance with the Paperwork
Reduction Act of 1995, on or after the date of publication of this
notice. The public is invited to submit comments on these requests.
DATES: Comments must be received on or before May 31, 2022.
ADDRESSES: Written comments and recommendations for the proposed
information collection should be sent within 30 days of publication of
this notice to <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.
FOR FURTHER INFORMATION CONTACT: Copies of the submissions may be
obtained from Molly Stasko by emailing <a href="/cdn-cgi/l/email-protection#db8b899a9bafa9bebaa8aea9a2f5bcb4ad"><span class="__cf_email__" data-cfemail="b4e4e6f5f4c0c6d1d5c7c1c6cd9ad3dbc2">[email protected]</span></a>, calling (202)
622-8922, or viewing the entire information collection request at
<a href="http://www.reginfo.gov">www.reginfo.gov</a>.
SUPPLEMENTARY INFORMATION:
Financial Crimes Enforcement Network (FinCEN)
1. Title: Prohibition on correspondent accounts for foreign shell
banks; records concerning owners of foreign banks and agents for
service of legal process (31 CFR 1010.630).
OMB Control Number: 1506-0043.
Type of Review: Extension of a currently approved collection.
Description: The legislative framework generally referred to as the
Bank Secrecy Act (BSA) consists of the Currency and Financial
Transactions Reporting Act of 1970, as amended by the Uniting and
Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), Public
Law 107-56 (October 26, 2001), and other legislation, including most
recently the Anti-Money Laundering Act of 2020 (AML Act). 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.
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. 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.
31 U.S.C. 5318(j) prohibits covered financial institutions from
maintaining correspondent accounts in the United States for, or on
behalf of, foreign banks that do not have a physical presence in any
country. In addition, under 31 U.S.C. 5318(k), a covered financial
institution maintaining a correspondent account in the United States
for a foreign bank, must retain records identifying (i) the owners of
record and the beneficial owners of the foreign bank, and (ii) the name
and address of a person residing in the United States who is authorized
to accept service of legal process for the foreign bank. The
regulations implementing 31 U.S.C. 5318(j) and 31 U.S.C. 5318(k) appear
at 31 CFR 1010.630.
31 CFR 1010.630(a)(1) prohibits covered financial institutions from
establishing, maintaining, administering, or managing correspondent
accounts in the United States for, or on behalf of, foreign shell
banks. Covered financial institutions must take reasonable steps to
ensure that any correspondent account managed by a covered financial
institution in the United States is not being used by a foreign bank to
indirectly provide banking services to a foreign shell bank.
31 CFR 1010.630(a)(2) implements 31 U.S.C. 5318(k) and requires
covered financial institutions that maintain correspondent accounts in
the United States for foreign banks to retain records in the United
States identifying: (i) The owners of each such foreign bank whose
shares are not publicly traded, with one exception; and (ii) the name
and street address of a person who resides in the United States and is
authorized, and has agreed, to be an agent to accept service of legal
process for records regarding each such account.
31 CFR 1010.630(b) clarifies that a covered financial institution
will be deemed to be in compliance with the requirements of 31 CFR
1010.630(a) with respect to a foreign bank if the covered financial
institution obtains, at least once every three years, a certification
or recertification from the foreign bank. FinCEN has developed an
optional certification form that includes a request to the foreign bank
for the information required under 31 CFR 1010.630(a). Covered
financial institutions may use the certification form to obtain the
necessary information for an initial certification and a
recertification.
31 CFR 1010.630(c) requires a covered financial institution to
request that a foreign bank verify or correct the information provided
in such bank's certification or recertification, if the covered
financial institution knows, suspects, or has reason to suspect that
such information is incorrect or no longer accurate. Additionally, the
covered financial institution may take other appropriate measures to
ascertain the accuracy of the information or obtain the correct
information.
If a covered financial institution has not obtained a
certification, recertification, or information needed for a
certification or recertification within 30 calendar days after the date
the account is established, and at least once every three years
thereafter, the covered financial institution must close all such
foreign bank's correspondent accounts within a commercially reasonable
time, and must restrict the foreign bank's ability to execute any new
transactions other than those necessary to close the account.
Furthermore, if a covered financial institution conducting an interim
verification pursuant to 31 CFR 1010.630(c), has not obtained
verification of the information or corrected information within 90
calendar days after the date of undertaking the interim verification,
the covered financial institution must follow the same account closure
procedures set out above.
31 CFR 1010.630(d)(4) prohibits covered financial institutions
from: (i) Re-establishing any account closed pursuant to 31 CFR
1010.630(d); and (ii) establishing any other correspondent account with
the foreign bank whose account was closed, unless the foreign bank
provides the appropriate certification or recertification. 31 CFR
1010.630(d)(5) states that a covered financial institution will not be
held liable for terminating a correspondent account in accordance with
31 CFR 1010.630(d).
31 CFR 1010.630(e) requires covered financial institutions to
retain any original document provided by a foreign bank, and the
original or a copy of any
[[Page 25354]]
document otherwise relied upon by a covered financial institution for
purposes of complying with 31 CFR 1010.630, for at least five years
after the date that a covered financial institution no longer maintains
any correspondent account for such foreign bank.
Form Number: Optional form--certification and re-certification
regarding correspondent accounts for foreign banks.
Affected Public: Businesses and other for-profits.
Estimated Number of Respondents: 8,696.
Frequency of Response: As required.
Estimated Total Annual Burden Hours: 260,880 hours.
2. Title: Additional records to be made and retained by casinos (31
CFR 1021.410).
OMB Control Number: 1506-0054.
Type of Review: Extension without change of a current OMB approval.
Description: The legislative framework generally referred to as the
Bank Secrecy Act (BSA) consists of the Currency and Financial
Transactions Reporting Act of 1970, as amended by the Uniting and
Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), Public
Law 107-56 (October 26, 2001), and other legislation, including most
recently the Anti-Money Laundering Act of 2020 (AML Act). 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.
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. 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.
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. 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. The specific
identifying information relied upon must be recorded by the casino in
the manner described in 31 CFR 1010.312. 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.
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 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); and
<bullet> For card clubs only, 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.
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. All indexes,
[[Page 25355]]
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.
Form Number: None.
Affected Public: Businesses or other for-profits.
Estimated Number of Respondents: 993.
Frequency of Response: As required.
Estimated Total Annual Burden Hours: 128,637 hours.
3. Title: Reporting obligations on foreign bank relationships with
Iranian-linked financial institutions designated under IEEPA and IRGC-
linked persons designated under IEEPA (31 CFR 1060.300).
OMB Control Number: 1506-0066.
Type of Review: Extension of a currently approved collection.
Description: The legislative framework generally referred to as the
Bank Secrecy Act (BSA) consists of the Currency and Financial
Transactions Reporting Act of 1970, as amended by the Uniting and
Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), Public
Law 107-56 (October 26, 2001), and other legislation, including most
recently the Anti-Money Laundering Act of 2020 (AML Act). 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.
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. 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.
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 that maintains a
correspondent account for a specified foreign bank 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.
(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''); (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'') processed by such
foreign bank within the preceding 90 calendar days.
(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 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 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.
(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.
[[Page 25356]]
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.
Form Number: Optional form--certification regarding correspondent
accounts for foreign banks.
Affected Public: Businesses and other for-profits.
Estimated Number of Respondents: 5,164.
Frequency of Response: As required.
Estimated Number of Responses: 1,040.
Estimated Total Annual Burden Hours: 1,820 hours.
Authority: 44 U.S.C. 3501 et seq.
Molly Stasko,
Treasury PRA Clearance Officer.
[FR Doc. 2022-09098 Filed 4-27-22; 8:45 am]
BILLING CODE 4810-02-P
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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.