Notice2022-19375
Agency Information Collection Activities; Information Collection Revision; Submission for OMB Review; Bank Secrecy Act/Money Laundering Risk Assessment
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
September 8, 2022
Issuing agencies
Treasury DepartmentComptroller of the Currency
Abstract
The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites comment on a revised information collection as required by the Paperwork Reduction Act of 1995 (PRA). In accordance with the requirements of the PRA, the OCC may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The OCC is soliciting comment concerning its information collection entitled, "Bank Secrecy Act/Money Laundering Risk Assessment," also known as the Money Laundering Risk (MLR) System. The OCC also is giving notice that it has sent the collection to OMB for review.
Full Text
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<title>Federal Register, Volume 87 Issue 173 (Thursday, September 8, 2022)</title>
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[Federal Register Volume 87, Number 173 (Thursday, September 8, 2022)]
[Notices]
[Pages 55083-55085]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-19375]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities; Information Collection
Revision; Submission for OMB Review; Bank Secrecy Act/Money Laundering
Risk Assessment
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.
ACTION: Notice and request for comment.
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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork
and respondent burden, invites comment on a revised information
collection as required by the Paperwork Reduction Act of 1995 (PRA). In
accordance with the requirements of the PRA, the OCC may not conduct or
sponsor, and the respondent is not required to respond to, an
information collection unless it displays a currently valid Office of
Management and Budget (OMB) control number. The OCC is soliciting
comment concerning its information collection entitled, ``Bank Secrecy
Act/Money Laundering Risk Assessment,'' also known as the Money
Laundering Risk (MLR) System. The OCC also is giving notice that it has
sent the collection to OMB for review.
DATES: Comments must be submitted by October 11, 2022.
ADDRESSES: Commenters are encouraged to submit comments by email, if
possible. You may submit comments by any of the following methods:
<bullet> Email: <a href="/cdn-cgi/l/email-protection#7e0e0c1f171018113e111d1d500a0c1b1f0d50191108"><span class="__cf_email__" data-cfemail="79090b1810171f1639161a1a570d0b1c180a571e160f">[email protected]</span></a>.
<bullet> Mail: Chief Counsel's Office, Attention: Comment
Processing, 1557-0231, Office of the Comptroller of the Currency, 400
7th Street SW, Suite 3E-218, Washington, DC 20219.
<bullet> Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
<bullet> Fax: (571) 465-4326.
Instructions: You must include ``OCC'' as the agency name and
``1557-0231'' in your comment. In general, the OCC will publish
comments on <a href="http://www.reginfo.gov">www.reginfo.gov</a> without change, including any business or
personal information provided, such as name and address information,
email addresses, or phone numbers. Comments received, including
attachments and other supporting materials, are part of the public
record and subject to public disclosure. Do not include any information
in your comment or supporting materials that you consider confidential
or inappropriate for public disclosure.
Written comments and recommendations for the proposed information
collection should also 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>. You can find this
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.
On June 8, 2022, the OCC published a 60-day notice for this
information collection (87 FR 34927). You may review comments and other
related materials that pertain to this information collection following
the close of the 30-day comment period for this notice by the method
set forth in the next bullet.
<bullet> Viewing Comments Electronically: Go to <a href="http://www.reginfo.gov">www.reginfo.gov</a>.
Hover over the ``Information Collection Review'' tab and click on
``Information Collection Review'' from the drop-down menu. From the
``Currently under Review'' drop-down menu, select ``Department of
Treasury'' and then click ``submit.'' This information collection can
be located by searching by OMB control number ``1557-0231'' or ``Bank
Secrecy Act/Money Laundering Risk Assessment.'' Upon finding the
appropriate information collection, click on the related ``ICR
Reference Number.'' On the next screen, select ``View Supporting
Statement and Other Documents'' and then click on the link to any
comment listed at the bottom of the screen.
<bullet> For assistance in navigating <a href="http://www.reginfo.gov">www.reginfo.gov</a>, please
contact the Regulatory Information Service Center at (202) 482-7340.
FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance
Officer, (202) 874-5090, Chief Counsel's Office, Office of the
Comptroller of the Currency, 400 7th Street SW, Washington, DC 20219.
If you are deaf, hard of hearing, or have a speech disability please
dial 7-1-1 to access telecommunications relay services.
SUPPLEMENTARY INFORMATION: Under the PRA, Federal agencies must obtain
approval from the OMB for each collection of information they conduct
or sponsor. ``Collection of information'' is defined in 44 U.S.C.
3502(3) and 5 CFR 1320.3(c) to include questions posed to agencies,
instrumentalities, or employees of the United States, if the results
are to be used for general statistical purposes, that is, if the
results are to be used for statistical compilations of general public
interest, including compilations showing the status or implementation
of Federal activities and programs. The OCC asks that OMB extend its
approval of the collection in this document.
Title: Bank Secrecy Act/Money Laundering Risk Assessment.
OMB Control No: 1557-0231.
Type of Review: Regular.
Affected Public: Business or other for-profit.
Abstract: The MLR System enhances the ability of examiners and bank
management to identify and evaluate Bank Secrecy Act/Money Laundering
and Office of Foreign Asset Control (OFAC) sanctions risks associated
with banks' products, services, customers, and locations. As new
products and services are introduced, existing products and services
change, and banks expand through mergers and acquisitions, banks'
evaluation of money laundering and terrorist financing risks should
evolve as well. Consequently, the MLR System risk assessment is an
important tool for the OCC's Bank Secrecy Act/Anti-Money Laundering and
OFAC supervision activities because it allows the OCC to better
identify those institutions, and business activities within
institutions, that may pose heightened risk and then allocate
examination resources accordingly. This risk assessment is critical for
protecting U.S. financial institutions of all sizes from potential
abuse from money laundering and terrorist financing. The MLR System
also provides the OCC with information regarding products or customers
that may be experiencing difficulties or
[[Page 55084]]
challenges maintaining banking services. MLR data assists banks'
management of BSA/AML programs and provides a starting point for banks
to develop their risk assessments. An appropriate risk assessment
allows controls to be effectively implemented for the lines of
business, products, or entities that would elevate Bank Secrecy Act/
Money Laundering and OFAC compliance risks.
The OCC collects MLR information for community and trust banks
supervised by the OCC.
The OCC's annual Risk Summary Form (RSF) is fully automated making
data entry quick and efficient and provides an electronic record for
banks and the OCC. The RSF collects data about different products,
services, customers, and geographies (PSCs). The OCC is introducing a
few changes to the 2022 RSF to further improve the quality of the
collected data, streamline the collection process and more accurately
reflect the risks associated with the customers served by banks. For
2022, the RSF will include three changes:
1. The addition of six new PSCs: cash transactions, marijuana-
related businesses, ATM Operators, crypto assets--custody, stablecoin
issuance, and stablecoin payments.
2. The addition of two new customer types under the money
transmitters category: administrators and exchangers of virtual
currency; and crypto ATM operators.
3. The deletion of four existing PSCs: boat/airplane, bulk cash/
currency repatriation customers, bulk cash/currency repatriation, and
international branches.
The addition of these six new PSC categories increases the number
of data collection points from 69 to 71 as shown in the table below:
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No. Existing PSCs No. New PSCs
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1............................. Convenience Stores 1 Cash Transactions
2............................. Liquor Stores 2 Marijuana Related Businesses
3............................. Domestic Charitable Organizations 3 ATM Operators
4............................. Jewelry, Gem and Precious Metals 4 Crypto-Assets Custody
Dealers
5............................. Casinos 5 Stablecoin Issuance
6............................. Car Dealers 6 Stablecoin Payments
7............................. Boat/Airplane 7 Convenience Stores
8............................. Domestic Private Banking 8 Liquor Stores
9............................. Domestic Commercial Letters of 9 Domestic Charitable Organizations
Credit
10............................ Stand-by Letters of Credit 10 Jewelry, Gem and Precious Metals
Dealers
11............................ Customers/Accounts opened through 11 Casinos
the Internet, Mail, Wire or Phone
(non-branch)
12............................ Domestic Deposit Brokers 12 Car Dealers
13............................ Travel Agencies 13 Domestic Private Banking
14............................ Broker Dealers 14 Domestic Commercial Letters of
Credit
15............................ Telemarketers 15 Stand-by Letters of Credit
16............................ Remotely Created Check Customers 16 Customers/Accounts opened through
the Internet, Mail, Wire or Phone
(non-branch)
17............................ Domestic Remote Deposit Capture 17 Domestic Deposit Brokers
Customers
18............................ Third Party Senders 18 Travel Agencies
19............................ Issuance of Traveler's Checks, 19 Broker Dealers
Official Bank Checks & Money
Orders
20............................ Domestic Wire Transfers 20 Telemarketers
21............................ Domestic PUPID Wire Transfers 21 Remotely Created Check Customers
22............................ ACH 22 Domestic Remote Deposit Capture
Customers
23............................ Remotely Created Checks 23 Third Party Senders
24............................ Domestic Remote Deposit Capture 24 Issuance of Traveler's Checks,
Official Bank Checks & Money
Orders
25............................ Non-Resident Alien Accounts 25 Domestic Wire Transfers
26............................ Politically Exposed Persons 26 Domestic PUPID Wire Transfers
27............................ Foreign Off-Shore Corporations 27 ACH
28............................ Foreign Deposit Brokers 28 Remotely Created Checks
29............................ Foreign Charitable Organizations 29 Domestic Remote Deposit Capture
30............................ Import/Export 30 Non-Resident Alien Accounts
31............................ Foreign Remote Deposit Capture 31 Politically Exposed Persons
Customers
32............................ Bulk Cash/Currency Repatriation 32 Foreign Off-Shore Corporations
Customers
33............................ International Branches 33 Foreign Deposit Brokers
34............................ Foreign Correspondent Accounts 34 Foreign Charitable Organizations
35............................ Payable Through Accounts 35 Import/Export
36............................ Pouch Services 36 Foreign Remote Deposit Capture
Customers
37............................ Foreign Bank Affiliate 37 Foreign Correspondent Accounts
38............................ International Department 38 Payable Through Accounts
39............................ International Private Banking 39 Pouch Services
40............................ Embassy & Consulate Banking 40 Foreign Bank Affiliate
41............................ International Commercial Letters of 41 International Department
Credit
42............................ International Bank Drafts 42 International Private Banking
43............................ International Wire Transfers 43 Embassy & Consulate Banking
44............................ International PUPID Wire Transfers 44 International Commercial Letters
of Credit
45............................ Remittance Products 45 International Bank Drafts
46............................ Cross-Border ACH 46 International Wire Transfers
47............................ International Remote Deposit 47 International PUPID Wire Transfers
Capture
48............................ Bulk Cash/Currency Repatriation 48 Remittance Products
49............................ Domestic Casas de Cambio/Currency 49 Cross-Border ACH
Exchange
[[Page 55085]]
50............................ Foreign Casas de Cambio/Currency 50 International Remote Deposit
Exchange Capture
51............................ Money Transmitters 51 Domestic Casas de Cambio/Currency
Exchange
52............................ Check Cashers 52 Foreign Casas de Cambio/Currency
Exchange
53............................ Issuers or Sellers of Traveler 53 Money Transmitters
Checks or Money Orders
54............................ Providers of Prepaid Access 54 Check Cashers
55............................ Sellers of Prepaid Access 55 Issuers or Sellers of Traveler
Checks or Money Orders
56............................ Prepaid Cards 56 Providers of Prepaid Access
57............................ Prepaid Card Programs--Third Party 57 Sellers of Prepaid Access
Sponsored
58............................ Prepaid Card Programs--Bank 58 Prepaid Cards
Sponsored
59............................ Prepaid Cardholders 59 Prepaid Card Programs--Third Party
Sponsored
60............................ Prepaid Card Program Managers 60 Prepaid Card Programs--Bank
Sponsored
61............................ Domestic Charitable Trusts & 61 Prepaid Cardholders
Foundations
62............................ Foreign Charitable Trusts & 62 Prepaid Card Program Managers
Foundations
63............................ Custodial Accounts 63 Domestic Charitable Trusts &
Foundations
64............................ Investment Advisory Accounts 64 Foreign Charitable Trusts &
Foundations
65............................ Revocable Trusts 65 Custodial Accounts
66............................ Foreign Grantor or Beneficiaries 66 Investment Advisory Accounts
67............................ Loans to Closely Held Corporations 67 Revocable Trusts
68............................ Brokerage Department/Operations 68 Foreign Grantor or Beneficiaries
69............................ Investment Advisory/Management 69 Loans to Closely Held Corporations
................................... 70 Brokerage Department/Operations
................................... 71 Investment Advisory/Management
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* PSC category deletions (from the existing PSC column) and additions (from the new PSC column are italicized
and denoted in bold.
The OCC estimates the burden of this collection of information as
follows:
Burden Estimates:
Community and trust bank population:
Estimated Number of Respondents: 970.
Estimated Number of Responses: 970.
Frequency of Response: Annually.
Estimated Annual Burden: 7,760 hours.
Comments: On June 8, 2022, the OCC published a 60-day notice in the
Federal Register concerning the collection, 87 FR 34927. The OCC
received three comments from the public, including one from a banking
association regarding the accuracy of the OCC's information collection
burden estimate and the impact the changes in the PSCs would have on
the data collection process. The respondent stated the OCC did not
provide a basis for its estimated burden of 7,760 hours from an
estimated 970 respondents. Per the respondent, the changes proposed to
the MLR would require more than the eight hours per respondent
estimated by the OCC and that the OCC had underestimated both the staff
time and financial resources needed to update reporting systems to
reflect the proposed changes. The respondent also commented that the
introduction of six new products, services, customers, and geography
categories (PSCs) and the resulting changes in the numbering and
location of these PSCs would unnecessarily complicate the data
collection process, require significant staff retraining, and
potentially result in mis-categorizations of the PSCs.
The OCC has observed that the systems most banks currently maintain
for MLR data collection purposes already support ready access to the
data; thus, the changes to the MLR will not require additional
significant investment in technology or systems to collect and report
this data. The 7,760 hours in the OCC's estimated burden already
includes an additional two hours to account for the two new MLR PSCs.
Based on these existing systems and the changes to the MLR platform
described below, the addition of the two hours should be sufficient to
account for any system changes banks may have to make to collect and
report the data for the new PSCs. With planning and minor programming
changes to bank systems, the additional MLR data collection burden
associated with the proposed changes will be minimal for banks of all
sizes.
The introduction of the six new PSCs and the resulting changes in
the listing numeration of the PSCs is a minor modification and will not
significantly impact the data collection and reporting process.
Recently, the OCC made major changes to the MLR platform that have
resulted in a more modern, intuitive, and user-friendly collection
tool. The current data collection platform, and support resources
offered by the OCC, will assist banks with the data collection process.
In addition, the OCC offers annual webinars where any changes to the
data collection process are presented and discussed with bankers.
During the webinars, bankers are given time to ask questions or raise
any issues or concerns they may have related to this information
collection. The changes to the MLR, introduced this year, will be
discussed in detail during the 2022 MLR Webinar and give bankers
additional opportunities to provide feedback. Moreover, each year, the
OCC releases an updated MLR User Guide, complete with detailed
instructions for banks to report MLR data. Finally, the OCC has a
dedicated MLR email inbox for bankers to submit MLR-related questions
and receive timely assistance from the OCC.
Comments continue to be invited on:
(a) Whether the collection of information is necessary for the
proper performance of the functions of the OCC, including whether the
information has practical utility;
(b) The accuracy of the OCC's estimate of the burden of the
collection of information;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of the collection on respondents,
including through the use of automated collection techniques or other
forms of information technology; and
(e) Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2022-19375 Filed 9-7-22; 8:45 am]
BILLING CODE 4810-33-P
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</html>Indexed from Federal Register on September 8, 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.