Notice2023-00708
Agency Information Collection Activities; Proposed Collection; Comment Request; Individual FinCEN Identifiers
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
January 17, 2023
Issuing agencies
Treasury DepartmentFinancial Crimes Enforcement Network
Abstract
FinCEN invites all interested parties to comment on the application that will be used to collect information from individuals who seek to obtain a FinCEN identifier, consistent with the Beneficial Ownership Information Reporting Requirements final rule that was published on September 30, 2022. Obtaining a FinCEN identifier is voluntary; however, individuals who seek to obtain a FinCEN identifier must submit an application and update the information provided on the application as necessary. The details included in the information collection are listed below. This request for comment is made pursuant to the Paperwork Reduction Act of 1995.
Full Text
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<title>Federal Register, Volume 88 Issue 10 (Tuesday, January 17, 2023)</title>
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[Federal Register Volume 88, Number 10 (Tuesday, January 17, 2023)]
[Notices]
[Pages 2764-2766]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-00708]
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DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Collection;
Comment Request; Individual FinCEN Identifiers
AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.
ACTION: Notice and request for comments.
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SUMMARY: FinCEN invites all interested parties to comment on the
application that will be used to collect information from individuals
who seek to obtain a FinCEN identifier, consistent with the Beneficial
Ownership Information
[[Page 2765]]
Reporting Requirements final rule that was published on September 30,
2022. Obtaining a FinCEN identifier is voluntary; however, individuals
who seek to obtain a FinCEN identifier must submit an application and
update the information provided on the application as necessary. The
details included in the information collection are listed below. This
request for comment is made pursuant to the Paperwork Reduction Act of
1995.
DATES: Written comments are welcome and must be received on or before
March 20, 2023.
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-2023-0001 and the specific Office of Management and Budget (OMB)
control number 1506-0076.
<bullet> Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2023-0001 and OMB control number 1506-0076.
Please submit comments by one method only. Comments will be
reviewed consistent with the Paperwork Reduction Act of 1995 (PRA) 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 Resource Center at 1-800-
767-2825 or electronically at <a href="https://www.fincen.gov/contact">https://www.fincen.gov/contact</a>.
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Provisions
FinCEN issued the Beneficial Ownership Information Reporting
Requirements final rule on September 30, 2022 (``final BOI reporting
rule'').\1\ The final BOI reporting rule requires certain legal
entities to file with FinCEN reports that identify the beneficial
owners of the entity. Entities created or registered to do business on
or after January 1, 2024, must also identify the individual who
directly filed the document with specified governmental authorities
that created the entity or registered it to do business, as well as the
individual who was primarily responsible for directing or controlling
such filing if more than one individual was involved in the filing of
the document. Further, the regulations describe who must file a report,
what information must be provided, and when a report is due. Entities
must certify that the report is true, correct, and complete. The rule
also sets out various requirements for individuals and entities that
seek to obtain a FinCEN identifier, which can be used in certain
circumstances to substitute for other information required to be
reported.\2\
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\1\ 87 FR 59498 (Sept. 30, 2022).
\2\ See 31 CFR 1010.380(b)(4). ``FinCEN identifier'' means the
unique identifying number assigned by FinCEN to an individual or
reporting company upon request, subject to certain conditions.
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These regulations implement Section 6403 of the Corporate
Transparency Act (CTA), enacted into law as part of the National
Defense Authorization Act for Fiscal Year 2021 (NDAA).\3\ These
requirements are intended to help prevent and combat money laundering,
terrorist financing, corruption, tax fraud, and other illicit activity,
while minimizing the burden on reporting entities.
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\3\ Specifically, the CTA is Title LXIV of the William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year 2021,
Public Law 116-283 (Jan. 1, 2021). Division F of the NDAA is the
Anti-Money Laundering Act of 2020, which includes the CTA. Section
6403 of the CTA, among other things, amends the Bank Secrecy Act
(BSA) by adding a new section 5336, Beneficial Ownership Information
Reporting Requirements, to subchapter II of chapter 53 of title 31,
United States Code.
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II. Paperwork Reduction Act of 1995 \4\
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\4\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
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Title: Individual FinCEN Identifiers.
OMB Control Number: 1506-0076.
Type of Review: Regular.
Description: The final BOI reporting rule requires the collection
of information from individuals in order to issue them a FinCEN
identifier. This is a voluntary collection. Individuals are not
required to obtain FinCEN identifiers; however, in order to be issued a
FinCEN identifier, the rule requires individuals to file applications
electronically with FinCEN that contain certain information about
themselves. Individuals are also required to submit updates of their
identifying information as needed. FinCEN will store such information
in its beneficial ownership information (BOI) database for access by
authorized users. (Entities will not use the FinCEN identifier
application to request a FinCEN identifier; instead, entities will
request a FinCEN identifier when they submit a BOI report.\5\)
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\5\ FinCEN is not separately calculating a cost estimate for
entities requesting a FinCEN identifier, because FinCEN assumes this
would already be accounted for in the process and cost of submitting
the BOI reports.
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Report: None.
Affected Public: Any individuals who meet the statutory criteria
could apply for a FinCEN identifier under the rule. However, the
primary reasons for individual beneficial owners to apply for a FinCEN
identifier likely include data security (where an individual may see
less risk in submitting personal identifiable information to FinCEN
directly and exclusively, compared with doing so indirectly through one
or more individuals at one or more reporting companies) and
administrative efficiency (where an individual is likely to be
identified as a beneficial owner of numerous reporting companies).
Company applicants who are responsible for registering many reporting
companies may have a similar incentive to request a FinCEN identifier
in order to limit the number of companies with access to their personal
information.
Estimated Number of Respondents: FinCEN estimates that the number
of individuals who will apply for a FinCEN identifier will likely be
relatively low. Specifically, FinCEN estimates that number to be
approximately 1 percent of the reporting company estimates. FinCEN
assumes that, similar to reporting companies' initial filings, there
would be an initial influx of applications for a FinCEN identifier that
would then decrease to a smaller annual rate of requests after Year 1
(2024). Therefore, FinCEN estimates that 325,569 individuals will apply
for a FinCEN identifier during Year 1 (2024) and 49,985 individuals
will apply for a FinCEN identifier annually thereafter.\6\ The total
five-year average of expected FinCEN identifier applications is
105,102. To estimate the number of updated reports for individuals'
FinCEN identifier information per year, FinCEN used the methodology
explained in the final BOI reporting rule to calculate, and then total,
monthly updates based on the number of FinCEN identifier applications
received in Year 1 (2024). FinCEN applied the monthly probability of
0.0068021 (8.16 percent, the annual likelihood of a change in address,
divided by 12 to find a monthly rate). This analysis estimated 12,180
updates in Year 1 (2024) and 26,575 annually thereafter.\7\ The total
five-year average of estimated FinCEN identifier updates is 23,696.
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\6\ 32,556,929 x 0.01 = 325,569 and 4,998,468 x 0.01 = 49,985,
respectively.
\7\ Refer to the final BOI reporting rule RIA cost analysis for
the underlying sources and analysis related to these estimates. See
87 FR 59562-59579 (Sept. 30, 2022).
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Frequency of Response: As required.
Estimated Time per Respondent: FinCEN anticipates that initial
FinCEN identifier applications would require
[[Page 2766]]
approximately 20 minutes (10 minutes to read the form and understand
the information required, and 10 minutes to fill out and file the
request, including attaching an image of an acceptable identification
document), given that the information to be submitted to FinCEN would
be readily available to the person requesting the FinCEN identifier.
FinCEN estimates that updates would require 10 minutes (10 minutes to
fill out and file the update).
Estimated Total Reporting Burden Hours: FinCEN estimates the total
burden hours of individuals initially applying for a FinCEN identifier
during Year 1 (2024) to be 108,535,\8\ with an annual burden of 16,662
hours thereafter.\9\ The five-year average of initial application
burdens is 35,034 hours. FinCEN estimates the burden hours of
individuals updating information related to FinCEN identifiers to be
2,030 in Year 1 (2024),\10\ with an annual burden of 4,429 hours
thereafter.\11\ The five-year average of updated application burdens is
3,949 hours. The total five-year average of time burdens is 38,983.
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\8\ 325,569 x (20/60) = 108,535.
\9\ 49,985 x (20/60) = 16,662.
\10\ 12,180 x (10/60) = 2,030.
\11\ 26,575 x (10/60) = 4,429.
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Estimated Total Reporting Cost: The total cost of FinCEN identifier
applications for individuals in Year 1 (2024) is estimated to be $6.2
million, with an annual cost of $945,667 thereafter.\12\ The five-year
average cost of initial applications is $1,988,431. The total cost of
FinCEN identifier updates for individuals in Year 1 (2024) is estimated
to be $115,219, with an annual cost of $251,386 thereafter.\13\ The
five-year average cost of updated applications is $224,153. The total
five-year average cost is $2,212,584.
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\12\ ($56.76 x (20/60)) x 325,569 = $6,159,488.81 and ($56.76 x
(20/60)) x 49,985 = $945,666.84.
\13\ ($56.76 x (10/60)) x 12,180 = $115,218.68 and ($56.76 x
(10/60)) x 26,575 = $251,386.22.
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Request for Comments
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a valid
OMB control number. Comments submitted in response to this notice will
be summarized and included in the request for OMB approval. All
comments will become a matter of public record. Comments are invited
on: (a) 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; (b) the accuracy of the
agency'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 of
information on respondents, including through the use of technology;
and (e) estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services required to provide information.
Himamauli Das,
Acting Director, Financial Crimes Enforcement Network.
Appendix--FinCEN Identifier Application Summary of Data Fields
Note: Form is only available to persons who have already
obtained <a href="http://login.gov">login.gov</a> accounts and have signed in through <a href="http://login.gov">login.gov</a>.
Lines that must be filled in for a report to be accepted are
identified with the * symbol next to the line number. Italicized
text provides a description and/or explanation of lines and response
options for purposes of this PRA notice.
Filing Information
1. FinCEN ID (assigned by FinCEN and cannot be edited; populates
automatically if individual has already applied for and received a
FinCEN Identifier, based on the linkage empty if filer has not
already received a FinCEN Identifier)
2. Date Last Amended (assigned by FinCEN and cannot be edited;
populates automatically with the date the information associated
with the FinCEN Identifier was last updated if individual has
already applied for and received a FinCEN Identifier, based on the
linkage between <a href="http://login.gov">login.gov</a> account and FinCEN Identifier assigned to
the account; line 2 is empty if filer has not already received a
FinCEN Identifier)
Part I. Individual Information
Full legal name:
3. * First name
4. Middle name (required if individual has a middle name)
5. * Last name
6. Suffix (required if the individual's name has a suffix)
Date of birth:
7. * Date of birth
Address: (report both business address and residential address
if the FinCEN ID will be used for both a Company Applicant and a
Beneficial Owner)
8. * Address type (check the box that applies to the type of address
to be provided in lines 9-13)
a. Residential address
b. Business address
9. * Address (number, street, and apt. or suite no.)
10. * City
11. * Country/Jurisdiction (select from list of countries/
jurisdictions)
12. * State (select from list when United States, Canada, or Mexico
is the country/jurisdiction selected in line 11; if a U.S. Territory
is the country/jurisdiction selected in line 11, line 12 populates
automatically with the selected U.S. Territory; if a foreign country
is the country/jurisdiction selected in line 11, line 12 remains
empty)
13. * ZIP/Foreign postal code
Form of identification and issuing jurisdiction:
14. * Identifying document type (select one from list of lines 14a-
14d)
a. State-issued driver's license
b. State/local/Tribe-issued ID
c. U.S. passport
d. Foreign passport
15. * Identifying document number
16. * Identifying document issuing jurisdiction (select country/
jurisdiction in line 16a and complete lines 16b-16d if applicable)
a. Country/Jurisdiction (select from list of countries/
jurisdictions)
b. State (select from list when the United States is the
country/jurisdiction selected in line 16a and the identifying
document is issued by a State; if a U.S. Territory is the country/
jurisdiction selected in line 16a, line 16b populates automatically
with the selected U.S. Territory; if a foreign country is the
country/jurisdiction selected in line 16a, line 16b remains empty)
c. Local/Tribal (select from list when the United States is the
country/jurisdiction selected in line 16a and the identifying
document is issued by a local jurisdiction or Tribe; if local
jurisdiction or Tribe is not included in the list, select ``Other''
and go to line 16d; if a U.S. Territory or foreign country is the
country/jurisdiction selected in line 16a, line 16c remains empty)
d. Other local/Tribal name (enter name of local jurisdiction or
Tribe that was not included in the list for line 16c)
17. * Identifying document image (attach image of identifying
document referred to in lines 14-16) (upload instructions will be
provided here)
Certification
18. * I certify that the information furnished is true, correct, and
complete. I understand that the willful provision of false or
fraudulent beneficial ownership information to FinCEN may result in
civil or criminal penalties.
a. I agree (check the box to certify)
[FR Doc. 2023-00708 Filed 1-13-23; 8:45 am]
BILLING CODE 4810-02-P
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</html>Indexed from Federal Register on January 17, 2023.
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.