Notice2023-21325
Agency Information Collection Activities; Submission for OMB Review; Comment Request; Individual FinCEN Identifier Application
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 29, 2023
Issuing agencies
Treasury Department
Abstract
The Department of the Treasury, on behalf of the Financial Crimes Enforcement Network (FinCEN), will submit the individual FinCEN identifier application information collection request to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995 (PRA), on or after the date of publication of this notice. The details included in the information collection are listed below. The public is invited to submit comments on this information collection request.
Full Text
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<title>Federal Register, Volume 88 Issue 188 (Friday, September 29, 2023)</title>
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[Federal Register Volume 88, Number 188 (Friday, September 29, 2023)]
[Notices]
[Pages 67449-67451]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-21325]
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DEPARTMENT OF THE TREASURY
Agency Information Collection Activities; Submission for OMB
Review; Comment Request; Individual FinCEN Identifier Application
AGENCY: Departmental Offices, Department of the Treasury.
ACTION: Notice of information collection; request for comments.
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SUMMARY: The Department of the Treasury, on behalf of the Financial
Crimes Enforcement Network (FinCEN), will submit the individual FinCEN
identifier application information collection request to the Office of
Management and Budget (OMB) for review and clearance in accordance with
the Paperwork Reduction Act of 1995 (PRA), on or after the date of
publication of this notice. The details included in the information
collection are listed below. The public is invited to submit comments
on this information collection request.
DATES: Written comments should be received on or before October 30,
2023.
ADDRESSES: Written comments on 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 Spencer W. Clark by emailing <a href="/cdn-cgi/l/email-protection#7626243736020413170503040f58111900"><span class="__cf_email__" data-cfemail="1b4b495a5b6f697e7a686e6962357c746d">[email protected]</span></a>, calling
(202) 927-5331, 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)
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 report to FinCEN information about themselves as well as information
about 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.
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\1\ 87 FR 59498 (Sept. 30, 2022).
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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 as a substitute for other information required to
be reported.\2\
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\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\ That
statutory provision, its implementing regulations, and their
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, amended 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: New collection.
Description: The final BOI reporting rule requires individuals
seeking to obtain a FinCEN identifier to submit certain information to
FinCEN. This is a voluntary collection. Individuals are not required to
obtain FinCEN identifiers. In order to be issued a FinCEN identifier,
however, the final
[[Page 67450]]
BOI reporting 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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Form: Individual FinCEN Identifier Application.
Affected Public: Any individuals who meet the criteria set forth in
the final BOI reporting rule may apply for a FinCEN identifier. 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, compared with doing so indirectly through 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 estimated number of reporting companies
expected to report BOI. 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 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. 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.
Authority: 44 U.S.C. 3501 et seq.
Spencer W. Clark,
Treasury PRA Clearance Officer.
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 and Date of Birth:
3. * First name
4. Middle name (required if individual has a middle name)
5. * Last name
[[Page 67451]]
6. Suffix (required if the individual's name has a suffix)
7. * Date of birth
Current 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 was selected in line 11; if a U.S. Territory was selected in
line 11, line 12 populates automatically with the selected U.S.
Territory; if a foreign country was 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 (can only be provided if individual does not
possess document type listed in 14a, 14b, or 14c)
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 was selected
in line 16a and the identifying document is issued by a State; if a
U.S. Territory was selected in line 16a, line 16b populates
automatically with the selected U.S. Territory; if a foreign country
was selected in line 16a, line 16b remains empty)
c. Local/Tribal (select from list when the United States was
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 was 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 to FinCEN of
false or fraudulent information in this application may result in
civil or criminal penalties.
a. I agree (check the box to certify)
[FR Doc. 2023-21325 Filed 9-28-23; 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.