Notice2024-18034
Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Anti-Money Laundering Program Requirements for Casinos
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
August 13, 2024
Issuing agencies
Treasury DepartmentFinancial Crimes Enforcement Network
Abstract
As part of its continuing effort to reduce paperwork and respondent burden, FinCEN invites comments on the proposed renewal, without change, of existing information collection requirements found in Bank Secrecy Act regulations that require casinos to develop and implement written anti-money laundering programs. This notice does not address requirements proposed under section 6101(b) of the Anti-Money Laundering Act of 2020. Paperwork and respondent burden for those requirements are addressed in a separate notice of proposed rulemaking. This request for comments is made pursuant to the Paperwork Reduction Act of 1995.
Full Text
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<title>Federal Register, Volume 89 Issue 156 (Tuesday, August 13, 2024)</title>
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[Federal Register Volume 89, Number 156 (Tuesday, August 13, 2024)]
[Notices]
[Pages 65977-65980]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-18034]
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DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request; Renewal Without Change of Anti-Money Laundering
Program Requirements for Casinos
AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.
ACTION: Notice and request for comments.
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SUMMARY: As part of its continuing effort to reduce paperwork and
respondent burden, FinCEN invites comments on the proposed renewal,
without change, of existing information collection requirements found
in Bank Secrecy Act regulations that require casinos to develop and
implement written anti-money laundering programs. This notice does not
address requirements proposed under section 6101(b) of the Anti-Money
Laundering Act of 2020. Paperwork and respondent burden for those
requirements are addressed in a
[[Page 65978]]
separate notice of proposed rulemaking. This request for comments is
made pursuant to the Paperwork Reduction Act of 1995.
DATES: Written comments are welcome and must be received on or before
October 15, 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-2024-0016 and Office of Management and Budget (OMB) control
number 1506-0051.
<bullet> Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2024-0016 and OMB control number 1506-0051.
Please submit comments by one method only. Comments will be
reviewed consistent with the Paperwork Reduction Act of 1995 and
applicable OMB regulations and guidance. All 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: FinCEN's Regulatory Support Section at
1-800-767-2825 or electronically at <a href="/cdn-cgi/l/email-protection#7a1c08193a1c1314191f14541d150c"><span class="__cf_email__" data-cfemail="305642537056595e53555e1e575f46">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Provisions
The legislative framework generally referred to as the Bank Secrecy
Act (BSA) consists of the Currency and Foreign Transactions Reporting
Act of 1970, as amended by the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001 (USA PATRIOT Act) \1\ and other legislation,
including the Anti-Money Laundering Act of 2020 (AML Act).\2\ The BSA
is codified at 12 U.S.C. 1829b, 1951-1960 and 31 U.S.C. 5311-5314,
5316-5336, including notes thereto, with implementing regulations at 31
CFR chapter X.
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\1\ USA PATRIOT Act, Pub. L. 107-56, 115 Stat. 272 (2001).
\2\ The AML Act was enacted as Division F, sections 6001-6511,
of the William M. (Mac) Thornberry National Defense Authorization
Act for Fiscal Year 2021, Pub. L. 116-283, 134 Stat. 3388.
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The BSA authorizes the Secretary of the Treasury (Secretary) to,
inter alia, require financial institutions to keep records and file
reports that are determined to have a high degree of usefulness in
criminal, tax, or regulatory matters, risk assessments or proceedings,
or in the conduct of intelligence or counter-intelligence activities to
protect against terrorism, and to implement anti-money laundering and
countering the financing of terrorism (AML/CFT) programs and compliance
procedures.\3\ The authority of the Secretary to administer the BSA has
been delegated to the Director of FinCEN.\4\
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\3\ See 31 U.S.C. 5311.
\4\ Treasury Order 180-01 (Jan. 14, 2020); see also 31 U.S.C.
310(b)(2)(I) (providing that FinCEN Director ``[a]dminister the
requirements of subchapter II of chapter 53 of this title, chapter 2
of title I of Public Law 91-508, and section 21 of the Federal
Deposit Insurance Act, to the extent delegated such authority by the
Secretary.'').
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Pursuant to 31 U.S.C. 5318(h)(1), financial institutions must
establish AML/CFT programs to guard against money laundering and the
financing of terrorism.\5\ Such programs must include, at a minimum:
(a) the development of internal policies, procedures, and controls; (b)
the designation of a compliance officer; (c) an ongoing employee
training program; and (d) an independent audit function to test
programs.\6\ On March 12, 1993, FinCEN issued regulations, under
separate statutory authority codified at 31 U.S.C. 5318(a)(2),
requiring casinos to develop and implement written BSA compliance
programs.\7\ FinCEN subsequently amended those regulations after
passage of the USA PATRIOT Act to state that a casino would be ``deemed
to satisfy the requirements of 31 U.S.C. 5318(h)(1) if it implements
and maintains'' an AML program, as described in'' 31 CFR
1021.210(b).\8\
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\5\ The provision was added to the BSA through Section 352 of
the USA PATRIOT Act and authorizes FinCEN to prescribe minimum
standards for AML programs and to exempt certain financial
institutions from application of those standards. Section 6101(b) of
the AML Act amended the provision to include explicit references to
terrorism finance and to specify the factors that FinCEN must
consider in prescribing minimum standards.
\6\ See 31 U.S.C. 5318(h)(1)(A)-(D).
\7\ See FinCEN, Regulations Regarding Reporting and
Recordkeeping Requirements by Casinos, 58 FR 13538 (Mar. 12, 1993).
The regulations were codified at 31 CFR 1021.210. Card clubs are
included in the casino AML program regulations, and any reference to
casinos used in BSA regulations includes card clubs, unless
specifically noted. See 31 CFR 1010.100(t)(5)(iii).
\8\ See FinCEN, Anti-Money Laundering Programs for Financial
Institutions, 67 FR 21110 (Apr. 29, 2002). The amended regulations
are codified at 31 CFR 1021.210(a).
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This notice renews the OMB control number associated with the
casino AML program regulations. This notice is not renewing the OMB
control numbers associated with other types of financial institutions'
AML program regulatory requirements, which were renewed as part of a
separate notice published in April 2024.\9\ This notice also does not
address any changes to requirements governing AML programs that FinCEN
is proposing to make pursuant to section 6101(b) of the AML Act; FinCEN
addressed the paperwork and respondent burden of such proposed changes
in the notice of proposed rulemaking (NPRM) entitled Anti-Money
Laundering and Countering the Financing of Terrorism Programs,
published in July 2024.\10\
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\9\ See FinCEN, Agency Information Collection Activities;
Proposed Renewal: Comment Request; Renewal Without Change of Anti-
Money Laundering Programs for Certain Financial Institutions, 89 FR
29427 (Apr. 22, 2024).
\10\ See FinCEN, Anti-Money Laundering and Countering the
Financing of Terrorism Programs NPRM, 89 FR 55428 (July 3, 2024).
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II. Paperwork Reduction Act of 1995 (PRA) \11\
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\11\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
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Title: Anti-money laundering program requirements for casinos (31
CFR 1021.210, 31 CFR 1021.410(b)(10) \12\).
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\12\ Pursuant to 31 CFR 1021.410(b)(10), casinos must retain a
copy of their AML compliance programs.
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OMB Control Number: 1506-0051.
Form Number: Not applicable.
Abstract: FinCEN is issuing this notice to renew the OMB control
number for the AML program requirements for casinos.
Affected Public: Businesses or other for-profit institutions.
Type of Review: Renewal without change of a currently approved
information collection.
Frequency: As required.
Estimated Number of Respondents: 1,277 casinos.\13\
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\13\ Table 1 below sets forth a distribution of the types of
casinos covered by this notice.
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Estimated Recordkeeping Burden: In Part 1 of this notice, FinCEN
describes the distribution of the estimated number of casinos by type.
In Part 2, FinCEN proposes for review and comment a renewal of the
calculation of the annual PRA burden that includes a scope and
methodology similar to that used in the 2020 notice to renew the OMB
control number for the casino AML program requirements.\14\
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\14\ See FinCEN, Agency Information Collection Activities;
Proposed Renewal; Comment Request; Renewal Without Change of Anti-
Money Laundering Program Requirements for Casinos, 85 FR 83676 (Dec.
22, 2020).
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Part 1. Distribution of the Casinos Covered by this Notice
The distribution of casinos, by type, covered by this notice is
reflected in table 1 below:
[[Page 65979]]
Table 1--Distribution of Casinos Covered by This Notice, by Type of
Casino
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Number of
Type of casino casinos
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Casino..................................................... 486
Tribal casino.............................................. 525
Card club.................................................. 266
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Total number of casinos.................................. \a\ 1,277
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\a\ Estimate based on the American Gaming Association (AGA) ``State of
Play,'' reporting 486 commercial casinos and 525 Tribal casinos as of
December 31, 2023 (available at <a href="https://www.americangaming.org/state-of-play/">https://www.americangaming.org/state-of-play/</a>, accessed February 28, 2024). As of December 31, 2022, there
were also 266 card rooms as published in the AGA's ``State of the
States'' annual report, p. 16 (available at <a href="https://www.americangaming.org/wpcontent/uploads/2023/05/AGA-State-of-the-States-2023.pdf">https://www.americangaming.org/wpcontent/uploads/2023/05/AGA-State-of-the-States-2023.pdf</a>, accessed February 28, 2024).
As noted above, 31 U.S.C. 5318(h) mandates that financial
institutions establish AML/CFT programs to guard against money
laundering and the financing of terrorism. Such programs must include,
at a minimum: (a) the development of internal policies, procedures, and
controls; (b) the designation of a compliance officer; (c) an ongoing
employee training program; and (d) an independent audit function to
test programs.\15\
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\15\ See 31 U.S.C. 5318(h)(1)(A)-(D).
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The AML program regulations for casinos require casinos to
implement AML programs that are reasonably designed.\16\ The AML
program must be in writing and must be independently tested for
compliance with a scope and frequency commensurate with the money
laundering and terrorist financing risks posed by the products and
services provided by the casino.\17\
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\16\ 31 CFR 1021.210(b)(1).
\17\ 31 CFR 1021(b)(2); see also 31 CFR 1021.410(b)(10).
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In connection with a variety of initiatives FinCEN is undertaking
to implement the AML Act, FinCEN intends to conduct, in the future,
additional assessments of the PRA burden associated with BSA
requirements.
Part 2. Annual PRA Burden and Cost
For purposes of estimating casino and card rooms' AML program
annual PRA burden(s), FinCEN continues to view the recordkeeping burden
associated with AML program requirements as the sum of four discrete
activities. The scope of the annual PRA burden and cost estimates of
the casino AML program requirements in this renewal therefore remains
subdivided as follows: maintaining and updating the AML program
documentation (Activity A); storing the written AML program (Activity
B); \18\ producing a copy of the written AML program if requested by
regulatory examiners or law enforcement (Activity C); and complying
with the requirements in 31 CFR 1021.210(b)(2)(v) and (vi), which are
unique to casino AML program regulations (Activity D).\19\
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\18\ Pursuant to 31 CFR 1021.210(b)(1) and 31 CFR
1021.410(b)(10), respectively, a casino's AML program must be
reduced to writing, and the casino must retain a copy of the
program.
\19\ Pursuant to 31 CFR 1021.210(b)(2)(v), a casino's AML
program must include procedures for using all available information
to determine: (i) when required by 31 CFR Chapter X, a person's
name, address, social security number, and other information, and
verification of the same; (ii) the occurrence of any transaction or
pattern of transactions required to be reported pursuant to 31 CFR
1021.320; and (iii) whether any record described in subpart D of
part 1010 of chapter X must be made and retained. Pursuant to 31 CFR
1021.210(b)(2)(vi), casinos with automated data processing systems
must implement AML programs that provide for the use of automated
programs to aid in assuring compliance.
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For purposes of estimating the casino AML program annual PRA
burden, FinCEN continues to estimate the hourly burden per activity
using the same burden estimates that were used in the 2020 notice to
renew the OMB control number for the casino AML program
requirements.\20\
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\20\ See supra note 14.
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<bullet> Activity A--FinCEN continues to estimate the incremental
annual PRA burden of maintaining and updating a written AML program at
an average of one hour per casino, consistent with the burden estimate
in the 2020 renewal of this OMB control number and in the renewal of
the AML program requirements for other types of financial institutions
in 2024.\21\
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\21\ See supra note 9.
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<bullet> Activity B--Required written AML programs are stored as
electronic files. The estimated annual burden (five minutes per
financial institution) represents the administrative burden involved in
processing the storage of the written program. FinCEN continues to
estimate the incremental annual PRA burden of storing an AML program at
an average of five minutes per casino.
<bullet> Activity C--Producing the written AML program to
regulatory or law enforcement agencies, upon their request, is
performed electronically. Historically, FinCEN has estimated the annual
burden of producing the written program at an average of five minutes
per financial institution. This estimated annual burden represents the
administrative burden involved in producing the program upon request
once per year. FinCEN continues to estimate the incremental annual PRA
burden of producing an AML program at five minutes per casino.
<bullet> Activity D--In the 2020 renewal of the casino AML program
regulations, FinCEN estimated the annual PRA burden to comply with 31
CFR 1021.210(b)(2)(v) and (vi) would average approximately 99 hours per
casino. FinCEN continues to estimate that the annual incremental PRA
burden of complying with these requirements is 99 hours per casino.\22\
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\22\ If it becomes necessary to consider how to allocate the
burden of Activity D between the activities required by 31 CFR
1021.210(b)(2)(v) and (vi) respectively, FinCEN is of the opinion
that (vi) contributes a de minimis burden to the activity. Pursuant
to 31 CFR 1021.210(b)(2)(vi), ``[f]or casinos that have automated
data processing systems,'' the casino's AML program must provide for
``the use of automated programs to aid in assuring compliance.''
While this may have been a measurable incremental source of burden
in the earlier stages of businesses adopting automated compliance
programs (particularly in the casino industry), FinCEN believes such
programs have since been widely adopted for a variety of sound
business reasons independent of FinCEN regulatory requirements. As
these programs are now effectively ubiquitous in the industry,
FinCEN is of the opinion that they would continue to be used in the
absence of the requirement in 31 CFR 1021.210(b)(2)(vi). However,
FinCEN solicits comments on whether this is the case, and whether as
a result the burden added by (vi) should be regarded as de minimis.
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Under these assumptions, FinCEN's estimate of the annual
incremental PRA burden is 127,912 hours, as detailed in table 2 below.
Table 2--Distribution of the Estimated Total Annual Burden Hours per Requirement
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Total
Required activities Instances per year Time per instance Number of hourly
casinos burden
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A. Maintaining and updating the 1 per casino.......... 1 hour................ 1,277 1,277
written AML program.
B. Storing the written AML program. 1 per casino.......... 5 minutes............. 1,277 * 106
C. Producing the AML program upon 1 per casino.......... 5 minutes............. 1,277 * 106
request.
[[Page 65980]]
D. Ongoing compliance with the 1 per casino.......... 99 hours.............. 1,277 126,423
requirements in 31 CFR
1021.210(b)(2)(v) and (vi).
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Total hourly burden............ ...................... ...................... .............. 127,912
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* 106.41 rounded to 106.
FinCEN is utilizing the same fully-loaded composite hourly wage
rate of $106.30 utilized in the 2024 NPRMs entitled Customer
Identification Programs for Registered Investment Advisers and Exempt
Reporting Companies and Anti-Money Laundering and Countering the
Financing of Terrorism Programs, as well as in recent 60-Day Notices to
renew OMB control numbers corresponding to specific BSA
regulations.\23\
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\23\ See, e.g., FinCEN and SEC, NPRM Customer Identification
Programs for Registered Investment Advisers and Exempt Reporting
Advisers, 89 FR 44571 (May 21, 2024); FinCEN, NPRM Anti-Money
Laundering and Countering the Financing of Terrorism Programs NPRM,
89 FR 55428 (July 3, 2024); FinCEN, Agency Information Collection
Activities; Proposed Renewal; Comment Request; Renewal Without
Change of the Customer Identification Program Regulatory
Requirements for Certain Financial Institutions, 89 FR 51940 (June
20, 2024); FinCEN, Agency Information Collection Activities;
Proposed Renewal; Comment Request; Renewal Without Change of Due
Diligence Programs for Correspondent Accounts for Foreign Financial
Institutions and for Private Banking Accounts, 89 FR 49273, (June
11, 2024).
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The total estimated cost of the annual PRA burden is
$13,597,045.60, as reflected in table 3 below:
Table 3--Estimated Total Cost of Annual PRA Burden
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Required activities Burden hours Wage rate Total cost
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A. Maintaining and updating the written AML program.... 1,277 $106.30 $135,745.10
B. Storing the written AML program..................... 106 106.30 11,267.80
C. Producing the AML program upon request.............. 106 106.30 11,267.80
D. Ongoing compliance with the requirements in 31 CFR 126,423 106.30 13,438,764.90
1021.210(b)(2)(v) and (vi)............................
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Total cost......................................... ................. ................. 13,597,045.60
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Estimated Number of Respondents: 1,277 casinos, as set out in table
1.
Estimated Total Annual Recordkeeping Burden: The estimated annual
PRA burden is approximately 127,912 hours, as set out in table 2.
Estimated Total Annual Recordkeeping Cost: The estimated total
annual PRA cost is approximately $13,597,045.60, as set out in table 3.
An Agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid OMB control number. Records required to be
retained under the BSA must be retained for five years.\24\
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\24\ See 31 CFR 1010.430.
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Request for Comments: Comments submitted in response to this notice
will be summarized and/or included in the request for OMB approval. All
comments will become a matter of public record. Comments are invited
on: (i) 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; (ii) the accuracy of the
agency's estimate of the burden of the collection of information; (iii)
ways to enhance the quality, utility, and clarity of the information to
be collected; (iv) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology; and (v)
estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Andrea M. Gacki,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2024-18034 Filed 8-12-24; 8:45 am]
BILLING CODE 4810-02-P
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