Agency Information Collection Activities; Proposed Collection; Submission for OMB Review; Beneficial Ownership Information Collection Request
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Issuing agencies
Abstract
The Department of the Treasury, on behalf of the Financial Crimes Enforcement Network (FinCEN), will submit the information collection associated with requests made to FinCEN by certain persons for beneficial ownership information, 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 89 Issue 141 (Tuesday, July 23, 2024)</title>
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[Federal Register Volume 89, Number 141 (Tuesday, July 23, 2024)]
[Notices]
[Pages 59805-59810]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-16174]
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DEPARTMENT OF THE TREASURY
Agency Information Collection Activities; Proposed Collection;
Submission for OMB Review; Beneficial Ownership Information Collection
Request
AGENCY: Departmental Offices, U.S. 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 information
collection associated with requests made to FinCEN by certain persons
for beneficial ownership information, 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
[[Page 59806]]
to submit comments on this information collection request.
DATES: Written comments must be received on or before August 22, 2024.
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#93c3c1d2d3e7e1f6f2e0e6e1eabdf4fce5"><span class="__cf_email__" data-cfemail="a9f9fbe8e9dddbccc8dadcdbd087cec6df">[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 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 pursuant to the CTA and establish the
circumstances in which specified recipients have access to beneficial
ownership information (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: New collection.
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 request for BOI (``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. Self-
regulatory organizations (SROs) cannot make BOI requests to FinCEN
under the BOI Access Rule, but can receive BOI via redisclosure from
other entities in some circumstances if they fulfill certain
requirements.
Consistent with the requirements of the PRA, FinCEN carefully
considered the comments received in response to the 60-day notice that
proposed the information collection associated with BOI requests for
public comment.\4\ The 60-day notice sought 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. To provide
greater clarity to authorized recipients on the data fields and
certification that will be required when submitting BOI requests, this
notice includes a revised Appendix (Beneficial Ownership Information
(BOI) Request: Summary of Data Fields by Authorized Recipient). Also,
as previously noted in the BOI Access Rule, FinCEN intends to provide
additional details regarding the form and manner of BOI requests for
all categories of authorized recipients through specific instructions
and guidance.
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\4\ 89 FR 5995 (Jan. 30, 2024).
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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 BOI Access Rule, including the certification requirement for the
information collection associated with BOI access requests, as part of
that rulemaking.
Form: BOI Request.
Affected Public: State, local and Tribal agencies, SROs, and
financial institutions with customer due diligence requirements under
applicable law, as defined in the 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.\5\ For foreign
requesters in particular, FinCEN assumes that such requests will be
made at the national level.
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\5\ 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.\6\ 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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\6\ 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 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
[[Page 59807]]
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: entering into an agreement
with FinCEN and establishing standards and procedures (Action B);
establishing a secure system to store BOI (Action D); establishing and
maintaining an auditable system of standardized records for requests
(Action E); submitting written certification for each request that it
meets certain requirements (Action G); restricting access to
appropriate persons within the entity (Action H); conducting an annual
audit and cooperate with FinCEN's annual audit (Action I); obtaining
certification of standards and procedures, initially and then semi-
annually, by the head of the entity (Action J); and providing 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: developing and implementing
administrative and physical safeguards (Action A); developing and
implementing technical safeguards (Action C); obtaining and documenting
customer consent (Action F); submitting certification for each request
that it meets certain requirements (Action G); undergoing training
(Action H); complying with certain geographic restrictions (Action L);
and notifying 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.\7\
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\7\ 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).\8\ 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 Rule 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.
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\8\ As noted previously, SROs will not have direct access to
BOI, but may receive BOI through redisclosure. Accordingly, SROs may
not need to meet every requirement that they are described as
meeting in Tables 1 and 2 to receive BOI. However, except where
noted in those tables, FinCEN has generally assessed similar costs
for SROs as for state, local, and Tribal agencies for analytical
purposes. This analysis thus may overestimate the burden on SROs,
but FinCEN lacks reliable data from which to formulate SRO-specific
estimates for receiving BOI.
Table 1--Annual Hourly Burden Associated With 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.
[[Page 59808]]
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.
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+ (Average
of 5,325,903 hours
across first 3
years).
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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.\9\
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.\10\
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\9\ 88 FR 88791 (Dec. 22, 2023).
\10\ 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 Rule
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 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.
[[Page 59809]]
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+.
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+ (Average
of $515,606,425
across first 3
years).
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Authority: 44 U.S.C. 3501 et seq.
Melody Braswell,
Treasury PRA Clearance Officer.
Appendix--Beneficial Ownership Information (BOI) Request: Summary of
Data Fields by Authorized Recipient
Note: Data fields that must be filled in to start a search are
identified with the * symbol next to the data field. Italicized text
provides a description and/or explanation of lines and response
options for purposes of this PRA notice.
I. Financial Institutions
Proposed Data Fields and Certification
Search for Beneficial Ownership Information
* Reporting company legal name
* 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 (if ``foreign'' is selected, a drop down menu
for ``country/jurisdiction'' populates automatically; select from
list of countries/jurisdictions)
* Reporting company tax identification number
* Certification
I certify on behalf of the financial institution making this
request that: (1) this information is requested to facilitate the
financial institution's compliance with customer due diligence
requirements under applicable law, as defined in 31 CFR
1010.955(b)(4)(i); (2) the financial institution has obtained and
documented the consent of the reporting company to request this
information from FinCEN; and (3) the financial institution has
fulfilled all other requirements of 31 CFR 1010.955(d)(2).
[Select ``I agree'']
[[Page 59810]]
II. State, Local, and Tribal Law Enforcement Agencies
Proposed Data Fields and Certification
New Justification
* Agency Reference (agency's internal reference name for BOI
request)
* Court authorization description (description of the information
the court has authorized the agency to seek)
* Name of court of competent jurisdiction
* Date of court authorization (mm/dd/yyyy)
Checkbox Request is being conducted 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 if this checkbox is selected: * first name of requester;
middle name of requester; * last name of requester; title; city; *
country/jurisdiction; state; ZIP/foreign postal code)
* Certification
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.
[Select ``I agree'']
III. State Regulatory Agencies
Proposed Data Fields and Certification
Search Beneficial Ownership Information Requested by Financial
Institutions
To begin a search, provide a Financial Institution Name or
Financial Institution Employer Identification Number (EIN). To
further refine your search, you may enter a Reporting Company Legal
Name, Reporting Company Tax Identification Number, and/or a date
range in which the financial institution searched for beneficial
ownership information.
Financial Institution
Financial Institution EIN (Employer Identification Number)
Reporting Company Legal Name
Reporting Company Tax Identification Number
Start Date (mm/dd/yyyy) (start of date range of financial
institution search for beneficial ownership information)
End Date (mm/dd/yyyy) (end of date range of financial institution
search for beneficial ownership information)
*Certification
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, as defined in 31 CFR
1010.955(b)(4)(i), and that my agency will use the requested
information solely for such purposes.
[Select ``I agree'']
[FR Doc. 2024-16174 Filed 7-22-24; 8:45 am]
BILLING CODE 4810-02-P
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