Notice2024-18035
Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Regulations Requiring Records To Be Made and Retained by Financial Institutions, Banks, and Providers and Sellers of Prepaid Access
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 certain financial institutions to make and retain records associated with certain types of transactions, including but not limited to funds transfers, transmittals of funds, and prepaid access transactions. 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 65971-65977]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-18035]
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DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request; Renewal Without Change of Regulations Requiring
Records To Be Made and Retained by Financial Institutions, Banks, and
Providers and Sellers of Prepaid Access
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 certain financial
institutions to make and retain records associated with certain types
of transactions, including but not limited to funds transfers,
transmittals of funds, and prepaid access transactions. 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-2024-0012 and Office of Management and Budget (OMB) control
numbers 1506-0058 and 1506-0059.
<bullet> Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2024-0012 and OMB control numbers 1506-0058 and 1506-0059.
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#1e786c7d5e7877707d7b7030797168"><span class="__cf_email__" data-cfemail="cbadb9a88bada2a5a8aea5e5aca4bd">[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 and 1951-1960 and 31 U.S.C. 5311-5314
and 5316-5336, and notes thereto,
[[Page 65972]]
with implementing regulations at 31 CFR chapter X.
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\1\ USA PATRIOT Act, Public Law 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, Public Law 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/
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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The Annunzio-Wylie Anti-Money Laundering Act (``Annunzio Wylie'')
amended the BSA by authorizing the Secretary and the Board of Governors
of the Federal Reserve System (the ``Board'') to jointly issue
regulations requiring insured depository institutions to maintain
records of domestic funds transfers.\5\ The Secretary, but not the
Board, is authorized to promulgate recordkeeping requirements for
domestic wire transfers by nonbank financial institutions.\6\ In
addition, Annunzio-Wylie authorized the Secretary and the Board, after
consultation with state banking supervisors, to jointly issue
regulations requiring insured depository institutions and certain
nonbank financial institutions to maintain records of international
funds transfers and transmittals of funds.\7\
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\5\ Public Law 103-325, sec. 1515 (1992); 12 U.S.C. 1829b(b)(2).
\6\ 12 U.S.C. 1953.
\7\ 12 U.S.C. 1829b(b)(3). The term ``funds transfer,'' as
defined in FinCEN regulations, applies exclusively to transactions
that are processed by banks. See 31 CFR 1010.100(w). A ``transmittal
of funds'' is broader, as it includes not only funds transfers, but
transactions processed by nonbank financial institutions. See 31 CFR
1010.100(ddd).
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A. 31 CFR 1010.410(a) Through (c)--Records To Be Made and Retained by
Financial Institutions
Pursuant to 31 CFR 1010.410(a) through (c),\8\ financial
institutions \9\ are required to retain either the original or a copy
of the following:
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\8\ Pursuant to 31 CFR 1010.410(d), a financial institution must
retain a record of such information for such period of time as the
Secretary may require in an order issued under 31 CFR 1010.370(a),
not to exceed five years. The recordkeeping burden for 31 CFR
1010.410(d) is accounted for under OMB control number 1506-0056,
which applies to 31 CFR 1010.370(a).
\9\ Unlike 31 CFR 1010.410(e), which applies only to financial
institutions other than banks, the requirements of 31 CFR
1010.410(a) through (c) apply to all ``financial institutions'' as
defined in 31 CFR 1010.100(t).
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<bullet> A record of each extension of credit in excess of $10,000,
except if the extension of credit is secured by an interest in real
property. The record must include the name and address of the person to
whom the extension of credit is made, and the amount, purpose, and date
of the extension of credit.\10\
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\10\ 31 CFR 1010.410(a).
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<bullet> A record of each request received or given regarding any
transaction resulting in (or intended to result in but later canceled
if such a record is normally made) the transfer of currency or other
monetary instruments, funds, checks, investment securities, or credit
of more than $10,000 to or from any person, account, or place outside
the United States.\11\
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\11\ 31 CFR 1010.410(b).
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<bullet> A record of each request given to another financial
institution or other person located in or outside of the United States,
regarding a transaction intended to result in a transfer of funds, or
of currency, other monetary instruments, checks, investment securities,
or credit of more than $10,000 to a person, account, or place outside
the United States.\12\
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\12\ 31 CFR 1010.410(c).
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B. 31 CFR 1010.410(e) and (f) and 31 CFR 1020.410(a)--Information
Required To Be Collected, Retained, and Transmitted Under the
Recordkeeping and Travel Rules
On January 3, 1995, Treasury and the Board jointly issued a
recordkeeping rule (the ``Recordkeeping Rule'') that requires banks and
nonbank financial institutions to collect and retain information
related to funds transfers and transmittals of funds in amounts of
$3,000 or more.\13\ The Recordkeeping Rule is intended to help law
enforcement and regulatory authorities to detect, investigate, and
prosecute money laundering, and other financial crimes by preserving an
information trail about persons sending and receiving funds through the
funds transfer system.
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\13\ 60 FR 220 (Jan. 3, 1995).
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At the same time, FinCEN issued a separate rule (the ``Travel
Rule'') that requires banks and nonbank financial institutions to
transmit information on certain funds transfers and transmittals of
funds to other banks or nonbank financial institutions participating in
the transfer or transmittal.\14\ The Recordkeeping Rule and the Travel
Rule complement each other. Generally, as noted below, the
Recordkeeping Rule requires financial institutions to collect and
retain the information that, under the Travel Rule, must be included
with transmittal orders, although the Recordkeeping Rule also has other
applications in addition to ensuring that information is available to
include with funds transfers. FinCEN issued the Travel Rule pursuant to
statutory authority that permits the Secretary to require domestic
financial institutions and nonfinancial trades or businesses to
maintain appropriate procedures to ensure compliance with the BSA or to
guard against money laundering.\15\
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\14\ 60 FR 234 (Jan. 3, 1995).
\15\ Id. The authority is codified at 31 U.S.C. 5318(a)(2).
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Requirements in the Recordkeeping Rule related to funds transfers
are codified at 31 CFR 1020.410(a). Requirements in the Recordkeeping
Rule related to transmittals of funds processed by nonbank financial
institutions are codified at 31 CFR 1010.410(e). The Travel Rule
consists of a single provision, codified at 31 CFR 1010.410(f), that
applies to all transmittals of funds, including those processed by
banks.\16\ This notice proposes to renew the regulations that implement
the Recordkeeping Rule and the Travel Rule, along with other regulatory
requirements in 31 CFR 1010.410, 1020.410, and 1022.420.\17\
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\16\ See supra note 7.
\17\ OMB control number 1506-0058 applies to 31 CFR 1010.410 and
31 CFR 1022.420. OMB control number 1506-0059 applies to 31 CFR
1020.410. On October 27, 2020, the Board and FinCEN (collectively,
the ``Agencies'') issued a joint notice of proposed rulemaking to
modify the thresholds in the Recordkeeping Rule and the Travel Rule.
See 85 FR 68005 (October 27, 2020). This notice and request for
comments under the PRA only pertains to the current regulatory
requirements of the Recordkeeping Rule and the Travel Rule.
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The Recordkeeping Rule and Travel Rule collectively require banks
and nonbank financial institutions to collect, retain, and transmit
information on funds transfers and transmittals of funds in amounts of
$3,000 or more.
[[Page 65973]]
Under the Recordkeeping Rule, the originator's bank or
transmittor's financial institution must collect and retain the
following information: (1) name and address of the originator or
transmittor; (2) the amount of the payment or transmittal order; (3)
the execution date of the payment or transmittal order; (4) any payment
instructions received from the originator or transmittor with the
payment or transmittal order; and (5) the identity of the beneficiary's
bank or recipient's financial institution. In addition, the
originator's bank or transmittor's financial institution must retain
the following information if it receives that information from the
originator or transmittor: (1) name and address of the beneficiary or
recipient; (2) account number of the beneficiary or recipient; and (3)
any other specific identifier of the beneficiary or recipient. The
originator's bank or transmittor's financial institution is required to
verify the identity of the person placing a payment or transmittal
order--and collect and retain various items of information identifying
the person--if the order is made in person and the person placing the
order is not an established customer.\18\ Similarly, should the
beneficiary's bank or recipient's financial institution deliver the
proceeds to the beneficiary or recipient in person, the bank or nonbank
financial institution must verify the identity of the beneficiary or
recipient--and collect and retain various items of information
identifying the beneficiary or recipient--if the beneficiary or
recipient is not an established customer. Finally, an intermediary bank
or financial institution--and the beneficiary's bank or recipient's
financial institution--must retain originals or copies of payment or
transmittal orders.
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\18\ ``Established customers'' include persons with accounts at
the financial institution and certain persons with identifying
information on file at the financial institution. See 31 CFR
1010.100(p).
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Under the Travel Rule, the originator's bank or transmittor's
financial institution is required to include information, including all
information required under the Recordkeeping Rule, in a payment or
transmittal order sent by the bank or nonbank financial institution to
another bank or nonbank financial institution in the payment chain. An
intermediary bank or financial institution is also required to transmit
this information to other banks or nonbank financial institutions in
the payment chain, to the extent the information is received by the
intermediary bank or financial institution.
C. 31 CFR 1020.410(c)--Additional Records To Be Made and Retained by
Banks
Pursuant to 31 CFR 1020.410(c), banks must retain either the
original or a copy of the following: \19\
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\19\ Under 31 CFR 1020.410(b), a bank is required to secure and
maintain a record of the taxpayer identification numbers of persons
who have purchased or redeemed certificates of deposit or opened
deposit or share accounts during the period from June 30, 1972 to
October 1, 2003. Insofar as deposit and share accounts are
concerned, customer identification program (CIP) requirements have
effectively superseded that provision. See 31 CFR 1020.220. CIP
requirements are not considered in connection with this OMB control
number renewal.
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<bullet> Each document granting signature authority over each
deposit or share account, including any notations, if such are normally
made, of specific identifying information to verify the identity of the
signer.\20\
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\20\ 31 CFR 1020.410(c)(1).
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<bullet> A record on each deposit or share account, showing each
transaction in, or with respect to, that account.\21\
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\21\ 31 CFR 1020.410(c)(2).
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<bullet> Each check, clean draft, or money order drawn on the bank
or issued and payable by it, with certain exceptions.\22\
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\22\ 31 CFR 1020.410(c)(3). See 31 CFR 1020.410(c)(3) for a list
of exceptions to the recordkeeping requirements.
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<bullet> A record of each item in excess of $100 comprising a debit
to a customer's deposit or share account, with certain exceptions.\23\
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\23\ 31 CFR 1020.410(c)(4).
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<bullet> A record of each item, including checks, drafts, or
transfers of credit of more than $10,000 remitted or transferred to a
person, account, or place outside the United States.\24\
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\24\ 31 CFR 1020.410(c)(5).
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<bullet> A record of each remittance or transfer of funds, or of
currency, other monetary instruments, checks, investment securities, or
credit, of more than $10,000 to a person, account, or place outside the
United States.\25\
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\25\ 31 CFR 1020.410(c)(6).
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<bullet> Each check or draft in excess of $10,000 drawn on or
issued by a foreign bank which the domestic bank has paid or presented
to a nonbank drawee for payment.\26\
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\26\ 31 CFR 1020.410(c)(7).
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<bullet> Each item, including checks, drafts or transfers of credit
of more than $10,000 received directly and not through a domestic
financial institution, by letter, cable or any other means, from a
bank, broker or dealer in foreign exchange outside the United
States.\27\
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\27\ 31 CFR 1020.410(c)(8).
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<bullet> A record of each receipt of currency, other monetary
instruments, investment securities or checks, and of each transfer of
funds or credit, of more than $10,000 received on any one occasion
directly and not through a domestic financial institution, from a bank,
broker or dealer in foreign exchange outside the United States.\28\
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\28\ 31 CFR 1020.410(c)(9).
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<bullet> Records prepared or received by a bank in the ordinary
course of business, which would be needed to reconstruct a transaction
account and to trace a check in excess of $100 deposited in such
account through its domestic processing system or to supply a
description of a deposited check in excess of $100. This requirement is
only applicable to demand deposits.\29\
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\29\ 31 CFR 1020.410(c)(10).
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<bullet> A record containing the name, address, and taxpayer
identification number (TIN), if available, of the purchaser of each
certificate of deposit, as well as a description of the instrument,
notation of the method of payment, and the date of the
transactions.\30\
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\30\ 31 CFR 1020.410(c)(11).
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<bullet> A record containing the name, address, and TIN, if
available, of any person presenting a certificate of deposit for
payment, as well as a description of the instrument and the date of the
transaction.\31\
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\31\ 31 CFR 1020.410(c)(12).
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<bullet> Each deposit slip or credit ticket reflecting a
transaction in excess of $100 or the equivalent record for direct
deposit or other wire transfer deposit transactions. The record must
include the amount of any currency involved.\32\
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\32\ 31 CFR 1020.410(c)(13).
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D. 31 CFR 1022.420--Additional Records To Be Maintained by Providers
and Sellers of Prepaid Access
Providers and sellers of prepaid access are defined as money
services businesses (MSBs) for purposes of FinCEN regulations.\33\ BSA
regulations specific to MSBs are found at 31 CFR part 1022. Providers
and sellers of prepaid access must maintain access to transactional
records generated in the ordinary course of business that would be
needed to reconstruct prepaid access activation, loads, reloads,
purchases, withdrawals, transfers, or other prepaid-related
transactions.
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\33\ See 31 CFR 1010.100(ff)(4) (providers of prepaid access);
31 CFR 1010.100(ff)(7) (sellers of prepaid access).
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II. Paperwork Reduction Act of 1995 (PRA) \34\
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\34\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
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Title: Records to be made and retained by financial institutions
(31 CFR
[[Page 65974]]
1010.410), records to be made and retained by banks (31 CFR 1020.410),
and additional records to be maintained by providers and sellers of
prepaid access (31 CFR 1022.420).\35\
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\35\ All the records required to be made and retained under 31
CFR 1010.410, 1020.410, and 1022.420 are required to be retained for
five years pursuant to 31 CFR 1010.430(d).
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OMB Control Number: 1506-0058 and 1506-0059.\36\
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\36\ OMB control number 1506-0058 applies to 31 CFR 1010.410 and
31 CFR 1022.420. OMB control number 1506-0059 applies to 31 CFR
1020.410.
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Form Number: Not applicable.
Abstract: FinCEN is issuing this notice to renew the OMB control
numbers for the regulations that require certain financial institutions
to make and retain records associated with certain types of
transactions, including funds transfers, transmittals of funds, and
prepaid access transactions, among other types of transactions.
Affected Public: Businesses or other for-profit institutions, and
non-profit institutions.
Type of Review: Renewal without change of a currently approved
information collection.
Frequency: As required.
Estimated Number of Respondents: 273,832 financial
institutions.\37\
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\37\ Table 1 below describes the distribution of the types of
financial institutions covered by this notice. This number is
significantly larger than FinCEN's estimate of the number of
respondents in earlier PRA discussions of this subject. It reflects
FinCEN's considered opinion that agent MSBs, as well as principal
MSBs, should be considered directly subject to the information
collections that are the subject of this notice. This change of
opinion should not be construed as a suggestion by FinCEN that the
information collections themselves have changed significantly.
Rather, it reflects FinCEN's continuous monitoring of its economic
analysis practices in an effort to improve overall accuracy and
consistency across all of its regulatory products.
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Estimated Recordkeeping Burden: In Part 1 of this analysis, FinCEN
describes the distribution of the estimated number of financial
institutions, by type, affected by each of the regulatory requirements.
In Part 2, FinCEN describes the primary characteristics of each of the
regulatory requirements. In addition, 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 these information collections.\38\
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\38\ See FinCEN, Agency Information Collection Activities;
Proposed Renewal; Comment Request; Renewal Without Change of
Regulations Requiring Records to be Made and Retained by Financial
Institutions, Banks, and Providers and Sellers of Prepaid Access, 85
FR 84105 (Dec. 23, 2020).
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Part 1. Distribution of the Financial Institutions Covered by This
Notice
The distribution of financial institutions, by type, covered by
this notice is reflected in table 1 below:
Table 1--Distribution of Financial Institutions Covered by This Notice,
by Type of Financial Institution
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Type of financial institution Number of
financial
institutio
ns
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Banks with a Federal functional regulator (FFR)............. \a\ 9,462
Banks lacking an FFR........................................ \b\ 600
Brokers or dealers in securities............................ \c\ 3,478
Principal MSBs, including:
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MSBs that conduct money transmission........... 16,897 \d\ 27,500
MSBs that conduct money transmission but do not 14,588
provide or sell prepaid access................
MSBs that conduct money transmission and 2,309
provide or sell prepaid access................
MSBs that do not conduct money transmission and 355
are providers or sellers of prepaid access....
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Agent MSBs.................................................. \e\
229,161
Telegraph companies......................................... \f\ 0
Casinos and card rooms...................................... \g\ 1,277
Futures commission merchants and introducing brokers in \h\ 954
commodities................................................
Mutual funds................................................ \i\ 1,400
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Total................................................... 273,832
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\a\ This estimate of the total number of banks with an FFR, including
credit unions, is based on end of year 2023 data as provided by each
of the FFRs, respectively. The FFRs are the Board of Governors of the
Federal Reserve System, the Federal Deposit Insurance Corporation, the
Office of the Comptroller of the Currency, and the National Credit
Union Administration.
\b\ This estimate of active entries as of year-end 2023 incorporates
data from both public and non-public sources, including: Call Reports;
various State banking/financial institution regulators' websites and
directories; the Federal Reserve Board of Governors' Master Account
and Services database (<a href="https://federalreserve.gov/paymentsystems/master-account-andservices-database-exisiting-access.htm">https://federalreserve.gov/paymentsystems/master-account-andservices-database-exisiting-access.htm</a>); and data
from the Commonwealth of Puerto Rico Oficina del Comisionado de
Instituciones Financieras (OCIF); and was derived in consultation with
staff from the Internal Revenue Service's Small Business/Self-Employed
Division.
\c\ Estimate based on December 2023 file downloaded ``from Data--Company
Information About Active Broker-Dealers,'' (accessed Feb. 28, 2024),
available at <a href="https://www.sec.gov/help/foiadocsbdfoia">https://www.sec.gov/help/foiadocsbdfoia</a>.
\d\ The definition of MSB (31 CFR 1010.100(ff)) covers both principal
MSBs and agents. This value represents the number of uniquely
identifiable principal MSBs with indicia of ongoing operations as of
year-end 2023 rounded to the nearest hundred. The estimate is derived
from FinCEN's publicly available MSB data (accessed Feb. 28, 2024),
available at <a href="https://www.fincen.gov/msb-registrant-search">https://www.fincen.gov/msb-registrant-search</a>. Estimates
of subcategories are based on registrants' self-reported activities.
\e\ In the absence of public comments in prior renewals of the OMB
control number applicable to this regulatory requirement, FinCEN
considers it reasonable to continue to rely upon its previous estimate
that the number of agent MSBs remains approximately 229,161. This
value was previously published in the 2020 notice to renew OMB control
numbers 1506-0020, 1506-0030, and 1506-0035 (85 FR 49420 (Aug. 13,
2020)).
\f\ Although telegraph companies are defined as financial institutions
under 31 CFR 1010.100(t), FinCEN is not aware of any telegraph
companies that would be affected by the Recordkeeping or Travel Rule.
\g\ Estimate based on the American Gaming Association (AGA) ``State of
Play,'' reporting 486 commercial casinos and 525 tribal casinos as of
December 31, 2023 (accessed Feb. 28, 2024), available at <a href="https://www.americangaming.org/state-of-play/">https://www.americangaming.org/state-of-play/</a>. 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 (accessed Feb. 28, 2024), available at
<a href="https://www.americangaming.org/wp-content/uploads/2023/05/AGA-State-of-the-States-2023.pdf">https://www.americangaming.org/wp-content/uploads/2023/05/AGA-State-of-the-States-2023.pdf</a>.
[[Page 65975]]
\h\ The number of futures commissions merchants as of December 31, 2023
was obtained from data available at CFTC Financial Data for FCMs
(accessed Mar. 1, 2024), available at <a href="https://www.cftc.gov/MarketReports/financialfcmdata/index.htm">https://www.cftc.gov/MarketReports/financialfcmdata/index.htm</a>. To prevent double counting
in burden estimates, 35 covered financial institutions that are also
affected entities as broker-dealers were removed from the count; the
count of introducing brokers in commodities as of year-end 2023 was
provided by the CFTC.
\i\ This estimate of the number of active mutual funds as of year-end
2023 is based on Form N-CEN filings received by the U.S. Securities
and Exchange Commission through January 20, 2023, as represented by
data downloaded from SEC Open Data (accessed Feb. 29, 2024), available
at <a href="https://www.sec.gov/dera/data/form-ncen-data-sets">https://www.sec.gov/dera/data/form-ncen-data-sets</a>.
31 CFR 1010.410(a) Through (c)
Description of Recordkeepers: Financial institutions providing
extensions of credit in excess of $10,000 (other than those secured by
real property), and participating in transfers of funds, currency,
other monetary instruments, checks, investment securities, or credit of
more than $10,000 to or from the United States. FinCEN expects that
while these requirements apply equally to all of types of financial
institutions listed in table 1 (above), the different nature and volume
of the business of these different types of financial institutions
means that these requirements are likely, in practice, to impose a
greater recordkeeping burden on some types of financial institutions
than on others. In particular, agent MSBs are typically significantly
smaller than principal MSBs, engage in a significantly lower volume of
transactions, and consequently should experience a significantly lower
burden on an institution-by-institution basis.
31 CFR 1010.410(d)
As noted above, the recordkeeping burden for 31 CFR 1010.410(d) is
accounted for under OMB control number 1506-0056, which applies to 31
CFR 1010.370(a). A notice to renew OMB control number 1506-0056 was
published in the Federal Register in February 2024.\39\
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\39\ See FinCEN, Agency Information Collection Activities:
Proposed Renewal; Comment Request; Renewal Without Change of Bank
Secrecy Act Regulations Requiring the Reports of Certain Domestic
Transactions, 89 FR 13802 (Feb. 23, 2024).
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31 CFR 1010.410(e)
Description of Recordkeepers: Financial institutions other than
banks that conduct transmittals of funds in the amount of $3,000 or
more. FinCEN expects that money transmitters (a type of MSB) will
comprise the overwhelming majority. Moreover, FinCEN expects that
principal money transmitters will engage in significantly more activity
of this kind than agent money transmitters. FinCEN is interested to
receive comments on whether these expectations are sound, and if not,
then the degree to which different categories of financial institutions
will be affected differently by this recordkeeping requirement.
31 CFR 1010.410(f)
Description of Recordkeepers: Financial institutions, including
banks, that are the originator's bank, transmittor's financial
institution or an intermediary bank or financial institution in a funds
transfer or other transmittal of funds in the amount of $3,000 or more.
FinCEN expects primarily banks, including credit unions, and money
transmitters (one type of MSB) to comprise the population of affected
financial institutions. Moreover, FinCEN expects that principal money
transmitters will engage in significantly more activity of this kind
than agent money transmitters. FinCEN is interested to receive comments
on whether these expectations are sound, and if not then the degree to
which different categories of financial institutions will be affected
differently by this recordkeeping requirement.
31 CFR 1020.410
Description of Recordkeepers: Banks, including credit unions, that
conduct funds transfers in amounts of $3,000 or more, and banks that
conduct transactions addressed in 31 CFR 1020.410(c).
31 CFR 1022.420
Description of Recordkeepers: MSBs that are providers or sellers of
prepaid access, as defined in 31 CFR 1010.100(ff)(4) and (7) and that
conduct prepaid access-related transactions.
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 and responsive modifications to current estimates.
Part 2. Annual PRA Burden and Cost
OMB Control Number 1506-0058
31 CFR 1010.410(a) Through (c)
Each financial institution must retain an original or a copy of
records related to extensions of credit in excess of $10,000 (other
than those secured by real property), and an original or copy of
records related to transfers of funds, currency, other monetary
instruments, checks, investment securities, or credit of more than
$10,000 to or from the United States.\40\ Due to the challenges of
obtaining the total number of such records required to be maintained
per financial institution, in its most recent control number renewal
FinCEN estimated that the average annual recordkeeping burden per
financial institution for these requirements was 50 hours per financial
institution.\41\ In the absence of additional data or other information
necessary to construct a more accurate estimate of total burden, FinCEN
(1) continues to estimate that the average annual hourly burden of
complying with 31 CFR 1010.410(a) through (c) is 50 hours per financial
institution that is not an agent MSB, and 5 hours per agent MSB, (2)
requests public comment on the reasonableness and accuracy of these
estimates, and (3) requests any data, studies, and quantitative or
qualitative reports that would inform a revised estimate of burden.\42\
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\40\ 31 CFR 1010.410(a) through (c).
\41\ See supra note 38.
\42\ See infra Requests for Comment part (ii).
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Based on an estimate of approximately 273,832 affected financial
institutions \43\ multiplying 44,671 (financial institutions other than
agent MSBs) by 50 (hours) and 229,161 (agent MSBs) by 5 (hours) results
in a total estimate of annual hourly burden of approximately 3,379,355
hours.
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\43\ See supra table 1. 30,952 represents the number of
financial institutions listed in the title of this notice, other
than MSBs that are providers and sellers of prepaid access, because
such MSBs would not conduct transactions described in 31 CFR
1010.410(a) through (c).
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31 CFR 1010.410(e)
Each nonbank financial institution that conducts transmittals of
funds in amounts of $3,000 or more must collect and retain information
related to these transactions. Due to the challenges of obtaining the
total number of transmittals of funds of $3,000 or more conducted per
nonbank financial institution, and the uncertain significance for
burden calculation of the maintenance of different numbers of such
records by different financial institutions, FinCEN estimated, in its
most recent control number renewal, that the average annual
recordkeeping burden per financial institution was approximately 16
hours per affected
[[Page 65976]]
financial institution.\44\ In the absence of information suggesting a
more accurate way of estimating total burden, FinCEN continues to
estimate that the average annual hourly burden to comply with 31 CFR
1010.410(e) is 16 hours per financial institution. As described above
and detailed below,\45\ public comment is invited.
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\44\ See supra note 38.
\45\ See infra Requests for Comment part (ii).
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Based on an estimate of approximately 16,897 MSBs \46\ providing
money transmission services, multiplying by 16 (hours) results in a
total estimate of annual hourly burden of approximately 270,352 hours.
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\46\ See supra table 1 for the estimated number of MSBs that
provide money transmission services.
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31 CFR 1010.410(f)
Each financial institution must transmit information on funds
transfers and transmittals of funds when acting as the originator's
bank, the transmittor's financial institution or an intermediary bank
or financial institution. Due to the challenges of obtaining the total
number of funds transfers or transmittals of funds for which a
financial institution was acting as the originator's bank, the
transmittor's financial institution, or an intermediary bank or
financial institution, and the uncertain significance for burden
calculation of the maintenance of different numbers of such records by
different financial institutions, FinCEN estimated, in its most recent
control number renewal, that the annual recordkeeping burden per
financial institution was an average of 12 hours per affected financial
institution.\47\ In the absence of information suggesting a more
accurate way of estimating total burden, FinCEN continues to estimate
that the average annual hourly burden to comply with 31 CFR 1010.410(f)
is 12 hours per financial institution.
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\47\ See supra note 38.
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26,959 banks and MSBs conducting money transmission,\48\ multiplied
by 12 hours, results in a total annual hourly burden estimate of
323,508 hours.
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\48\ See supra table 1. 26,959 comprises 10,062 banks and 16,897
MSBs that provide money transmission services.
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31 CFR 1022.420
Each provider or seller of prepaid access is required to maintain
access to transactional records generated in the ordinary course of
business that would be needed to reconstruct prepaid access activation,
loads, reloads, purchases, withdrawals, transfers, or other prepaid-
related transactions. Due to the challenges of obtaining the total
number of prepaid access transactions, and the uncertain significance
for burden calculation of the maintenance of different numbers of such
records by different financial institutions, FinCEN estimated, in its
most recent control number renewal, that the annual recordkeeping
burden per financial institution was 16 hours for every affected
financial institution.\49\ In the absence of information suggesting a
more accurate way of estimating total burden, FinCEN continues to
estimate that the average annual hourly burden to comply with 31 CFR
1022.420 is 16 hours per financial institution.
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\49\ See supra note 38.
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2,664 MSBs which are providers or sellers of prepaid access,\50\
multiplied by 16 hours, results in a total annually hourly burden
estimate of 42,624 hours.
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\50\ See supra table 1 for the total number of MSBs that are
providers or sellers of prepaid access.
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Total Annual PRA Burden for OMB Control Number 1506-0058: 4,015,839
hours.\51\
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\51\ 3,379,355 hours (31 CFR 1010.410(a)-(c)) + 270,352 hours
(31 CFR 1010.410(e)) + 323,508 hours (31 CFR 1010.410(f)) + 42,624
hours (31 CFR 1022.420) = 4,015,839 hours.
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OMB Control Number 1506-0059
31 CFR 1020.410
Banks, including credit unions, are required to: (1) collect and
retain information on funds transfers when conducting funds transfers
in amounts of $3,000 or more; and (2) retain an original or copy of
records when conducting transactions addressed in 31 CFR 1020.410(c).
Due to the challenges of obtaining the total number of funds transfers
of $3,000 or more conducted by each bank, and the challenges of
obtaining the total number of transactions conducted by each bank that
would trigger recordkeeping requirements in 31 CFR 1020.410(c), and the
uncertain significance for burden calculation of different financial
institutions conducting different numbers of such transactions, FinCEN
estimated, in its most recent control number renewal, that the annual
recordkeeping burden per bank was an average of 100 hours per affected
financial institution.\52\ In the absence of information suggesting a
more accurate way of estimating total burden, FinCEN continues to
estimate that the average annual hourly burden to comply with the
recordkeeping requirements in 31 CFR 1020.410 is 100 hours per bank.
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\52\ See supra note 38.
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10,062 banks \53\ multiplied by 100 hours results in a total annual
hourly burden estimate of 1,006,200 hours.
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\53\ See supra table 1 for the total number of banks.
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Total Annual PRA Burden for OMB Control Number 1506-0059: 1,006,200
hours.
Total Annual PRA Burden for OMB Control Numbers 1506-0058 and 1506-
0059.
FinCEN's estimate of the total annual PRA burden (5,022,039 hours)
includes each of the recordkeeping requirements being renewed in this
notice, detailed in table 2 below:
Table 2--Distribution of Estimated Total Annual Burden Hours per Requirement by Type of Affected Financial
Institutions
----------------------------------------------------------------------------------------------------------------
Annual burden
Number of estimate per Total annual
Regulatory requirement Affected financial financial financial burden hours
institution type institutions institution in per regulatory
hours requirement
----------------------------------------------------------------------------------------------------------------
31 CFR 1010.410(a)--(c)............... Financial institutions 44,671 50 2,233,550
as defined in 31 CFR
1010.100(t), excluding
agent MSBs.
Financial institutions 229,161 5 1,145,805
as defined in 31 CFR
1010.100(t) that are
exclusively agent MSBs.
31 CFR 1010.410(e).................... MSBs that conduct money 16,897 16 270,352
transmission.
31 CFR 1010.410(f).................... Banks and MSBs the 26,959 12 323,508
conduct money
transmission.
[[Page 65977]]
31 CFR 1022.420....................... MSBs that are providers 2,664 16 42,624
or sellers of prepaid
access.
31 CFR 1020.410....................... Banks................... 10,062 100 1,006,200
-----------------------------------------------
Total annual burden hours......... ........................ .............. 5,022,039
----------------------------------------------------------------------------------------------------------------
FinCEN is utilizing the same fully loaded composite hourly wage
rate of $106.30 utilized in the 2024 notices of proposed rulemaking
(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.\54\
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\54\ 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
$533,842,745.70, as reflected in table 3 below:
Table 3--Estimated Total Cost of Annual PRA Burden
----------------------------------------------------------------------------------------------------------------
Regulatory requirement Burden hours Wage rate Total cost
----------------------------------------------------------------------------------------------------------------
31 CFR 1010.410(a)-(c)................................. 3,379,355 $106.30 $359,225,436.50
31 CFR 1010.410(e)..................................... 270,352 106.30 28,738,417.60
31 CFR 1010.410(f)..................................... 323,508 106.30 34,388,900.40
31 CFR 1022.420........................................ 42,624 106.30 4,530,931.20
31 CFR 1020.410........................................ 1,006,200 106.30 106,959,060.00
--------------------------------------------------------
Total annual cost.................................. ................. ................. 533,842,745.70
----------------------------------------------------------------------------------------------------------------
Estimated Number of Respondents: 273,832 financial institutions, as
set out in table 1.
Estimated Total Annual Recordkeeping Burden: The estimated total
annual PRA burden is approximately 5,022,039 hours, as set out in table
2.
Estimated Total Annual Recordkeeping Cost: The estimated total
annual PRA cost is approximately $533,842,745.70 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.
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. 2024-18035 Filed 8-12-24; 8:45 am]
BILLING CODE 4810-02-P
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</html>Indexed from Federal Register on August 13, 2024.
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.