Notice2024-01828
Agency Information Collection Activities; Proposed Collection; Comment Request; Beneficial Ownership Information 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
January 30, 2024
Issuing agencies
Treasury DepartmentFinancial Crimes Enforcement Network
Abstract
FinCEN invites all interested parties to comment on the proposed information collection associated with requests made to FinCEN, by certain persons, for beneficial ownership information, consistent with the requirements of the Beneficial Ownership Information Access and Safeguards final rule. 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 89 Issue 20 (Tuesday, January 30, 2024)</title>
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[Federal Register Volume 89, Number 20 (Tuesday, January 30, 2024)]
[Notices]
[Pages 5995-6000]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-01828]
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DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Collection;
Comment Request; Beneficial Ownership Information Requests
AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.
[[Page 5996]]
ACTION: Notice and request for comments.
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SUMMARY: FinCEN invites all interested parties to comment on the
proposed information collection associated with requests made to
FinCEN, by certain persons, for beneficial ownership information,
consistent with the requirements of the Beneficial Ownership
Information Access and Safeguards final rule. 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 must be received on or before April 1, 2024.
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-2024-0002 and the specific Office of Management and Budget (OMB)
control number 1506-0077.
<bullet> Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2024-0002 and OMB control number 1506-0077.
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 Access and
Safeguards final rule (the ``BOI Access Rule'') on December 22,
2023,\1\ regarding access by authorized recipients to beneficial
ownership information (BOI) that will be reported to FinCEN pursuant to
Section 6403 of the Corporate Transparency Act (CTA), enacted into law
as part of National Defense Authorization Act for Fiscal Year 2021
(NDAA).\2\ The BOI Access Rule implements the strict protocols required
by the CTA to protect sensitive personally identifiable information
(PII) reported to FinCEN and establish the circumstances in which
specified recipients have access to BOI, along with the data protection
protocols and oversight mechanisms applicable to each recipient
category. The disclosure of BOI to authorized recipients in accordance
with appropriate protocols and oversight will help law enforcement and
national security agencies prevent and combat money laundering,
terrorist financing, tax fraud, and other illicit activity, as well as
protect national security.
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\1\ FinCEN, Beneficial Ownership Information Access and
Safeguards, 88 FR 88732 (Dec. 22, 2023), available at <a href="https://www.federalregister.gov/documents/2023/12/22/2023-27973/beneficial-ownership-information-access-and-safeguards">https://www.federalregister.gov/documents/2023/12/22/2023-27973/beneficial-ownership-information-access-and-safeguards</a>.
\2\ 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 <SUP>3</SUP>
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\3\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
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Title: Beneficial Ownership Information (BOI) Requests.
OMB Control Number: 1506-0077.
Type of Review: Regular.
Description: As explained in the regulatory impact analysis (RIA)
of the BOI Access Rule, the rule requires State, local, and Tribal
agencies and financial institutions that access BOI to satisfy certain
security and confidentiality requirements, including establishing
certain standards and procedures, and developing and implementing
safeguards. As a prerequisite for access to BOI, the rule also requires
State, local, and Tribal agencies and financial institutions to provide
a certification for each BOI request. Along with the certification,
State, local, and Tribal agencies and financial institutions will also
provide information by filling out data fields for each BOI request;
these data fields are set out in the Appendix. While some data fields
will be optional, others will be required.
As previewed in the BOI Access Rule, FinCEN is issuing this notice
with regard to the information collection associated with such BOI
requests. Thus, this notice seeks comment only on the burden for the
information collection associated with such BOI requests, which
corresponds to the burden associated with ``submit[ting] written
certification for each request that it meets certain requirements.''
Further details about those burdens are set forth in the BOI Access
Rule RIA (see Action G within Tables 1 and 2) and below. Also, as
previously noted in the BOI Access Rule, FinCEN intends to provide
additional detail regarding the form and manner of BOI requests for all
categories of authorized recipients through specific instructions and
guidance.
The following analysis represents the entirety of the burden under
OMB control number 1506-0077, which is associated with the BOI Access
Rule. FinCEN previously solicited public comment on the full burden of
the Access Rule, including the certification requirement for the
information collection associated with BOI requests, as part of that
rulemaking.
Form: None.
Affected Public: State, local and Tribal agencies, self-regulatory
organizations (SROs), and financial institutions with customer due
diligence requirements under applicable law, as defined in the final
BOI access rule. While Federal and foreign requesters are able to
access BOI after meeting specific requirements, FinCEN does not include
them in the PRA analysis because the regulations implementing the PRA
define ``person'' as an individual, partnership, association,
corporation (including operations of government-owned contractor-
operated facilities), business trust, or legal representative, an
organized group of individuals, a State, territorial, tribal, or local
government or branch thereof, or a political subdivision of a State,
territory, Tribal, or local government or a branch of a political
subdivision.\4\ For foreign requesters in particular, FinCEN assumes
that such requests will be made at the national level.
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\4\ See 5 CFR 1320.3(k).
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Estimated Number of Respondents: 15,934 entities. This total is
composed of an estimated 215 State, local, and Tribal agencies, of
which 158 are State, local, and Tribal law enforcement agencies and 57
are State regulatory agencies, 3 SROs, and 15,716 financial
institutions.\5\ While the requirements in the rule are only imposed on
those that optionally access BOI, for purposes of PRA burden analysis,
FinCEN assumes maximum participation from State, local, and Tribal
agencies, SROs, and financial institutions.
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\5\ See Table 1 in the RIA of the BOI Access Rule for the types
of financial institutions covered by this notice. 88 FR 88789 (Dec.
22, 2023).
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Frequency of Response: As required; varies depending on the
requirement.
Estimated Time per Respondent: See ``Hours per Entity'' column in
Table 1 below for estimated time for each requirement per respondent.
Estimated Total Annual Reporting and Recordkeeping Burden: FinCEN
estimates that during year 1 the annual
[[Page 5997]]
hourly burden will be 8,743,781 hours. In year 2 and onward, FinCEN
estimates that the annual hourly burden will be 3,616,964 hours. The
annual estimated burden hours for State, local, and Tribal entities and
SROs is 2,268,789 hours in the first year, and 1,699,612 hours in year
2 and onward. As shown in Table 1 below, the hourly burden in year 1
for State, local, and Tribal agencies and SROs includes the hourly
burden associated with the following requirements in the rule: enter
into an agreement with FinCEN and establish standards and procedures
(Action B); establish a secure system to store BOI (Action D);
establish and maintain an auditable system of standardized records for
requests (Action E); submit written certification for each request that
it meets certain requirements (Action G); restrict access to
appropriate persons within the entity (Action H); conduct an annual
audit and cooperate with FinCEN's annual audit (Action I); obtain
certification of standards and procedures, initially and then semi-
annually, by the head of the entity (Action J); and provide annual
reports on procedures (Action K). The hourly burden in year 2 and
onward for State, local, and Tribal agencies and SROs is associated
with the same requirements as year 1, with the exception of Action B
because FinCEN expects this action will result in costs for these
entities in year 1 only.
The annual estimated hourly burden for financial institutions is
6,474,992 hours in the first year and 1,917,352 hours in year 2 and
onward. The hourly burden for financial institutions in year 1 is
associated with the following: develop and implement administrative and
physical safeguards (Action A); develop and implement technical
safeguards (Action C); obtain and document customer consent (Action F);
submit certification for each request that it meets certain
requirements (Action G); undergo training (Action H); comply with
certain geographic restrictions (Action L); and notify FinCEN if they
receive an information demand from a foreign government (Action M). The
hourly burden in year 2 and onward for financial institutions is
associated only with the requirements for Actions F, G, and H because
FinCEN expects the other actions will result in costs for these
entities in year 1 only.
Annual estimated burden declines in year 2 and onward because
State, local, and Tribal agencies, SROs, and financial institutions no
longer need to complete Actions A and B, and have a lower hourly burden
for Actions E and F. State, local, and Tribal law enforcement agencies
have a lower hourly burden for Action G. Table 1 lists the type of
entity, the number of entities, the hours per entity, and the total
hourly burden by action. For Actions A, B, C, D, E, F, I, J, K, L, and
M the hours per entity are the maximum of the range estimated in the
cost analysis of the RIA. For Action G and H, the hours per entity
calculations are specified in footnotes to Table 1. Total annual hourly
burden is calculated by multiplying the number of entities by the hours
per entity for each action. In each subsequent year after initial
implementation, FinCEN estimates that the total hourly annual burden is
3,616,964. This results in a 5-year average burden estimate of
approximately 4,642,327 hours.\6\
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\6\ The 5-year average equals the sum of (Year 1 burden hours of
8,743,781 + Year 2 burden hours of 3,616,964 + Year 3 burden hours
of 3,616,964 + Year 4 burden hours of 3,616,964 + Year 5 burden
hours of 3,616,964) divided by 5.
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This notice seeks comment on the estimated total annual reporting
and recordkeeping burden for the information collection associated with
BOI requests, specifically the requirement to submit written
certification for each request that it meets certain requirements
(Action G in Table 1 below). FinCEN previously provided notice and an
opportunity for public comment on all actions that constitute the
reporting and recordkeeping burden associated with the BOI Access Rule,
including the certification requirement, as well as the estimated total
annual burden, through the BOI Access rulemaking. As explained above,
FinCEN is issuing this notice with regard to the information collection
associated with BOI requests; therefore, this notice seeks comment only
on the certification requirement.
Table 1--Annual Hourly Burden Associated With Rule Requirements
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Number of Total annual hourly
Action Type of entity entities Hours per entity burden
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A. Develop and implement Financial 15,716 240 in Year 1; 0 in 3,771,840 in Year
administrative and physical institutions. Years 2+. 1; 0 in Years 2+.
safeguards.
B. Enter into an agreement with State, local, and 218 300 in Year 1; 0 in 65,400 in Year 1; 0
FinCEN and establish standards Tribal agencies Years 2+. in Years 2+.
and procedures. and SROs.
C. Develop and implement Financial 15,716 0 in Year 1; 0 in 0 in Year 1; 0 in
technical safeguards. institutions. Years 2+. Years 2+.
D. Establish a secure system to State, local, and 218 300 in Year 1; 4 in 65,400 in Year 1;
store BOI. Tribal agencies Years 2+. 872 in Years 2+.
and SROs.
E. Establish and maintain an State, local, and 218 200 in Year 1; 20 43,600 in Year 1;
auditable system of standardized Tribal agencies in Years 2+. 4,360 in Years 2+.
records for requests. and SROs.
F. Obtain and document customer Financial 15,716 70 in Year 1; 20 in 1,100,120 in Year
consent. institutions. Years 2+. 1; 314,320 in
Years 2+.
G. Submit certification for each Financial 15,716 94 in Year 1; 94 in 1,474,161 in Year
request that it meets certain institutions. Years 2+. 1; 1,474,161 in
requirements \1\. Years 2+.
G. Submit written certification State, local, and 158 12,975 in Year 1; 2,050,003 in Year
for each request that it meets Tribal law 10,443 in Years 2+. 1; 1,649,994 in
certain requirements, including enforcement. Years 2+.
court authorization.
G. Submit written certification State regulatory 60 125 in Year 1; 125 7,500 in Year 1;
for each request that it meets agencies and SROs. in Years 2+. 7,500 in Years 2+.
certain requirements.
[[Page 5998]]
H. Undergo training \2\.......... Financial 15,716 8 in Year 1; 8 in 128,871 in Year 1;
institutions. Years 2+. 128,871 in Years
2+.
H. Restrict access to appropriate State, local, and 218 9 in Year 1, 9 in 2,006 in Year 1;
persons within the entity, which Tribal agencies Years 2+. 2,006 in Years 2+.
specifies that appropriate and SROs.
persons will undergo training
\3\.
I. Conduct an annual audit and State, local, and 218 160 in Year 1; 160 34,880 in Year 1;
cooperate with FinCEN's annual Tribal agencies in Years 2+. 34,880 in Years
audit. and SROs. 2+.
J. Obtain certification of State, local, and 218 Included in I...... Included in I.
standards and procedures Tribal agencies
initially and then semi- and SROs.
annually, by the head of the
entity.
K. Provide initial and then an State, local, and 218 Included in I...... Included in I.
annual report on procedures. Tribal agencies
and SROs.
L. Comply with certain geographic Financial 15,716 0 in Year 1; 0 in 0 in Year 1; 0 in
restrictions. institutions. Years 2+. Years 2+.
M. Notify FinCEN of information Financial 15,716 0 in Year 1; 0 in 0 in Year 1; 0 in
demand from foreign government. institutions. Years 2+. Years 2+.
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Total Annual Hourly Burden... ................... .............. ................... 8,743,781 in Year
1; 3,616,964 in
Years 2+.
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\1\ For all types of entities, the hours per entity for Action G is the per entity share of the aggregate burden
estimated in the RIA.
\2\ For financial institutions, the hours per entity for Action H equals the weighted average of the large and
small financial institutions' maximum burden estimated in the RIA.
\3\ For State, local, and Tribal agencies and SROs, the hours per entity for Action H equals the per entity
share of the aggregate burden.
Estimated Total Annual Reporting and Recordkeeping Cost: As
described in Table 3 of the BOI Access Rule RIA, FinCEN calculated the
fully loaded hourly wage for each type of affected entity type.\7\
Using these estimated wages, the total cost of the annual burden in
year 1 is $868,200,270. In year 2 and onward, FinCEN estimates that the
total cost of the annual burden is $339,309,502, owing to Actions A and
B only imposing burdens in year 1, Actions D and E having lower annual
per entity burdens, and Action G having lower burden per request for
State, local, and Tribal law enforcement agencies. The annual estimated
cost for State, local, and Tribal agencies and SROs is $181,851,118 in
the first year and $136,070,190 in year 2 and onward. The annual
estimated cost for financial institutions is $686,349,152 in the first
year and $203,239,312 in year 2 and onward. The 5-year average annual
cost estimate is $445,087,656.\8\
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\7\ 88 FR 88791 (Dec. 22, 2023).
\8\ The 5-year average equals the sum of (Year 1 costs of
$868,200,270 + Year 2 costs of $339,309,502 + Year 3 costs of
$339,309,502 + Year 4 costs of $339,309,502 + Year 5 costs of
$339,309,502) divided by 5.
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This notice seeks comment on the estimated total annual reporting
and recordkeeping cost for the information collection associated with
BOI requests, specifically the requirement to ``submit written
certification for each request that it meets certain requirements''
(Action G in Table 2 below). FinCEN previously provided notice and an
opportunity for public comment on all actions that constitute the
reporting and recordkeeping cost associated with the BOI Access Rule,
including the certification requirement, as well as the estimated total
annual reporting and recordkeeping cost, through the BOI Access
rulemaking. As FinCEN is issuing this notice with regard to the
information collection associated with BOI requests, this notice seeks
comment only on the certification requirement.
Table 2--Annual Cost Associated With Rule Requirements
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Total annual hourly
Action Type of entity Hourly wage burden Total annual cost
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A. Develop and implement Financial $106 3,771,840 in Year $399,815,040 in
administrative and physical institutions. 1; 0 in Years 2+. Year 1; $0 in
safeguards. Years 2+.
B. Enter into an agreement with State, local, and 80 65,400 in Year 1; 0 $5,232,000 in Year
FinCEN and establish standards Tribal agencies. in Years 2+. 1; $0 in Years 2+.
and procedures.
C. Develop and implement Financial 106 0 in Year 1; 0 in $0 in Year 1; $0 in
technical safeguards. institutions. Years 2+. Years 2+.
D. Establish a secure system to State, local, and 80 65,400 in Year 1; $5,232,000 in Year
store BOI. Tribal agencies. 872 in Years 2+. 1; $69,760 in
Years 2+.
[[Page 5999]]
E. Establish and maintain an State, local, and 80 43,600 in Year 1; $3,488,000 in Year
auditable system of standardized Tribal agencies. 4,360 in Years 2+. 1; $348,800 in
records for requests. Years 2+.
F. Obtain and document customer Financial 106 1,100,120 in Year $116,612,720 in
consent. institutions. 1; 314,320 in Year 1;
Years 2+. $33,317,920 in
Years 2+.
G. Submit certification for each Financial 106 1,474,161 in Year $156,261,066 in
request that it meets certain institutions. 1; 1,474,161 in Year 1;
requirements. Years 2+. $156,261,066 in
Years 2+.
G. Submit written certification State, local, and 80 2,050,003 in Year $164,000,240 in
for each request that it meets Tribal law 1; 1,649,994 in Year 1;
certain requirements, including enforcement. Years 2+. $131,999,520 in
court authorization. Years 2+.
G. Submit written certification State regulatory 80 7,500 in Year 1; $600,000 in Year 1;
for each request that it meets agencies. 7,500 in Years 2+. $600,000 in Years
certain requirements. 2+.
H. Undergo training.............. Financial 106 128,871 in Year 1; $13,660,326 in Year
institutions. 128,871 in Years 1; $13,660,326 in
2+. Years 2+.
H. Restrict access to appropriate State, local, and 80 2,006 in Year 1; $160,480 in Year 1;
persons within the agency, which Tribal agencies. 2,006 in Years 2+. $160,480 in Years
specifies that appropriate 2+.
persons will undergo training.
I. Conduct an annual audit and State, local, and 80 34,880 in Year 1; $2,790,400 in Year
cooperate with FinCEN's annual Tribal agencies. 34,880 in Years 2+. 1; $2,790,400 in
audit. Years 2+.
J. Obtain certification of State, local, and 80 Included in I...... Included in I.
standards and procedures Tribal agencies.
initially and then semi-
annually, by the head of the
entity.
K. Provide initial and then an State, local, and 80 Included in I...... Included in I.
annual report on procedures. Tribal agencies.
L. Comply with certain geographic Financial 106 0 in Year 1; 0 in $0 in Year 1; $0 in
restrictions. institutions. Years 2+. Years 2+.
M. Notify FinCEN of information Financial 106 0 in Year 1; 0 in $0 in Year 1; $0 in
demand from foreign government. institutions. Years 2+. Years 2+.
Actions B, D, E, G, H, I-K....... SRO................ 106 3,283 in Year 1; $347,998 in Year 1;
955 in Years 2+. $101,230 in Years
2+.
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Total Annual Cost............ .............. $868,200,270 in
Year 1;
$339,309,502 in
Years 2+.
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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.
(Authority: 44 U.S.C. 3501 et seq.)
Andrea M. Gacki,
Director, Financial Crimes Enforcement Network.
Appendix--Beneficial Ownership Information (BOI) Request: Summary of
Data Fields by Authorized Recipient
I. Financial Institutions
Proposed data fields and certification:
Company name (reporting company legal name)
Identifier type (reporting company tax identification number type;
select one from list of options)
<bullet> EIN (Employer Identification Number)
<bullet> SSN/ITIN (Social Security Number/Individual Taxpayer
Identification Number)
<bullet> Foreign
Company identifier (reporting company tax identification number)
[Select ``I agree''] I certify on behalf of the financial
institution making this request that: The financial institution is
subject to customer due diligence requirements under applicable law
and is requesting beneficial ownership information from FinCEN to
facilitate the financial institution's compliance with those
requirements; the financial institution has obtained and documented
the consent of the above identified company to request its
beneficial ownership information from FinCEN; and the financial
institution has fulfilled all other requirements of 31 CFR
1010.955(d)(2).
II. State, Local, and Tribal Law Enforcement Agencies
Proposed data fields and certification:
Agency Reference (agency's internal reference name for BOI Request)
[[Page 6000]]
Name of court of competent jurisdiction
Date of court authorization
Court authorization description (description of the information the
court has authorized the agency to seek)
Checkbox Request on behalf of another person in the same agency
(select this checkbox if the BOI Request is made on behalf of
another person in the same agency; provide the following information
for this person, as applicable: first name; middle name; last name;
title; city; country/jurisdiction; state; ZIP/foreign postal code)
[Select ``I agree''] I certify that a court of competent
jurisdiction has authorized my agency to seek this information in a
criminal or civil investigation and that the requested information
is relevant to the criminal or civil investigation.
III. State Regulatory Agencies
Proposed data fields and certification:
Financial Institution(s)
Financial Institution Employer Identification Number
Reporting Company Legal Name
Reporting Company Tax Identification Number
Start Date
End Date
[Select ``I agree''] I certify that my agency is authorized by
law to assess, supervise, enforce, or otherwise determine the
compliance of a relevant financial institution with customer due
diligence requirements under applicable law and that my agency will
use the requested information solely for the purpose of conducting
such activities.
[FR Doc. 2024-01828 Filed 1-29-24; 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.