[Federal Register Volume 77, Number 53 (Monday, March 19, 2012)]
[Notices]
[Pages 16118-16119]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-6479]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Proposed Renewal Without Change; Comment Request; Customer 
Identification Programs for Various Financial Institutions

AGENCY: Financial Crimes Enforcement Network (FinCEN).

ACTION: Notice and request for comments.

-----------------------------------------------------------------------

SUMMARY: As part of its continuing effort to reduce paperwork and 
respondent burden, FinCEN invites comment on a proposed renewal, 
without change, to information collections found in regulations 
requiring futures commission merchants, introducing brokers, banks, 
savings associations, credit unions, certain non-federally regulated 
banks, mutual funds, and broker-dealers, to develop and implement 
customer identification programs reasonably designed to prevent those 
financial institutions from being used to facilitate money laundering 
and the financing of terrorist activities. This request for comment is 
being made pursuant to the Paperwork Reduction Act of 1995, Public Law 
104-13, 44 U.S.C. 3506(c)(2)(A).

DATES: Written comments are welcome and must be received on or before 
May 18, 2012.

ADDRESSES: Written comments should be submitted to: Regulatory Policy 
and Programs Division, Financial Crimes Enforcement Network, Department 
of the Treasury, P.O. Box 39, Vienna, VA 22183, Attention: Customer 
Identification Program Comments. Comments also may be submitted by 
electronic mail to the following Internet address: 
[email protected], again with a caption, in the body of the text, 
``Attention: Customer Identification Program Comments.''
    Inspection of comments: Comments may be inspected, between 10 a.m. 
and 4 p.m., in the FinCEN reading room in Vienna, VA. Persons wishing 
to inspect the comments submitted must request an appointment with the 
Disclosure Officer by telephoning (703) 905-5034 (not a toll free 
call).

FOR FURTHER INFORMATION CONTACT: The Regulatory Policy and Programs 
Division at 800-949-2732 option 6.

SUPPLEMENTARY INFORMATION:
    Abstract: FinCEN exercises regulatory functions primarily under the 
Currency and Financial Transactions Reporting Act of 1970, as amended 
by the USA PATRIOT Act of 2001 and other legislation. This legislative 
framework is commonly referred to as the ``Bank Secrecy Act'' 
(``BSA'').\1\ The Secretary of the Treasury has delegated to the 
Director of FinCEN the authority to implement, administer, and enforce 
compliance with the BSA and associated regulations.\2\ Pursuant to this 
authority, FinCEN may issue regulations requiring financial 
institutions to keep records and file reports that ``have a high degree 
of usefulness in criminal, tax, or regulatory investigations or 
proceedings, or in the conduct of intelligence or counterintelligence 
activities, including analysis, to protect against international 
terrorism.'' \3\ Additionally, FinCEN is authorized to impose 
regulations to maintain procedures to ensure compliance with the BSA 
and FinCEN's implementing regulations, or to guard against money 
laundering, which includes imposing anti-money laundering (``AML'') 
program requirements on financial institutions.\4\
---------------------------------------------------------------------------

    \1\ The BSA is codified at 12 U.S.C. 1829b, 12 U.S.C. 1951-1959, 
31 U.S.C. 5311-5314, and 5316-5332 and notes thereto, with 
implementing regulations at 31 CFR Chapter X. See 31 CFR 
1010.100(e).
    \2\ Treasury Order 180-01 (Sept. 26, 2002).
    \3\ 31 U.S.C. 5311.
    \4\ 31 U.S.C. 5318(a) and (h).
---------------------------------------------------------------------------

    Section 5318(l) of the Bank Secrecy Act authorizes FinCEN to issue 
regulations prescribing customer identification programs for financial 
institutions. The regulations must require that, at a minimum, 
financial institutions implement reasonable procedures for (1) 
verifying the identity of any person seeking to open an account, to the 
extent reasonable and practicable; (2) maintaining records of the 
information used to verify the person's identity, including name, 
address, and other identifying information; and (3) determining whether 
the person appears on any lists of known or suspected terrorists or 
terrorist organizations provided to the financial institution by any 
government agency. The regulations are to take into consideration the 
various types of accounts maintained by various types of financial 
institutions, the various methods of opening accounts, and the various 
types of identifying information available. Regulations implementing 
section 5318(l) are found at 31 CFR 1020.220, 1023.220, 1026.220, and 
1024.220.
    1. Title: Customer identification programs for banks, savings 
associations, credit unions, and certain non-federally regulated banks. 
(31 CFR 1020.220).
    Office of Management and Budget Control Number (OMB): 1506-0026.

[[Page 16119]]

    Abstract: Banks, savings associations, credit unions, and certain 
non-federally regulated banks are required to develop and maintain 
customer identification programs and provide their customers with 
notice of the programs. (See FR 68, 25090, May 9, 2003).
    Current Action: There is no change to existing regulations.
    Type of Review: Extension of a currently approved information 
collection.
    Affected Public: Business and other for profit institutions and 
non-profit institutions.
    Burden: Estimated Number of Respondents 22,060.
    Estimated Average Annual Recordkeeping Burden per Respondent: 10 
hours.
    Estimated Average Annual Disclosure Burden per Respondent: 1 hour.
    Estimated Total Annual Respondent Burden: 242,660 hours.
    2. Title: Customer identification program for broker-dealers (31 
CFR 1023.220).
    OMB Control Number: 1506-0034.
    Abstract: Broker-dealers are required to establish and maintain 
customer identification programs and provide their customers with 
notice of the programs. (See FR 68, 25113, May 9, 2003).
    Current Action: There is no change to existing regulations.
    Type of Review: Extension of a currently approved information 
collection.
    Affected Public: Business and other for profit institutions.
    Burden: Estimated Number of Respondents 5,448.
    Estimated Average Annual Burden per Respondent: The estimated 
average burden associated with the notice requirement is two minutes 
per respondent.
    Estimated Number of Hours: 630,896.
    3. Title: Customer identification programs for futures commission 
merchants and introducing brokers (31 CFR 1026.220).
    OMB Control Number: 1506-0022.
    Abstract: Futures commission merchants and introducing brokers are 
required to develop and maintain customer identification programs and 
provide their customers with notice of the programs. (See FR 68, 25149, 
May 9, 2003).
    Current Action: There is no change to existing regulations.
    Type of Review: Extension of a currently approved information 
collection.
    Affected Public: Business and other for profit institutions.
    Burden: Estimated Number of Respondents: 1856.
    Estimated Average Annual Burden per Respondent: The estimated 
average burden associated with the notice requirement is two minutes 
per respondent.
    Estimated Number of Hours: 20,471.
    4. Title: Customer identification programs for mutual funds (31 CFR 
1024.220).
    OMB Control Number: 1505-0033.
    Abstract: Mutual funds are required to establish and maintain 
customer identification programs and provide their customers with 
notice of the programs. (See FR 68, 25131, May 9, 2003).
    Current Action: There is no change to existing regulations.
    Type of Review: Extension of a currently approved information 
collection.
    Affected Public: Business and other for profit institutions.
    Burden: Estimated Number of Respondents: 2,296.
    Estimated Average Annual Burden per Respondent: The estimated 
average burden associated with the notice requirement is 2 minutes per 
respondent.
    Estimated Number of Hours: 266,700.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a valid 
control number assigned by the Office of Management and Budget. Records 
required to be retained under the BSA must be retained for five years. 
Generally, information collected pursuant to the BSA is confidential 
but may be shared as provided by law with regulatory and law 
enforcement authorities.

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: (a) Whether 
the collection of information is necessary for the proper performance 
of the functions of the agency, including whether the information shall 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the collection of information; (c) ways to enhance the 
quality, utility, and clarity of the information to be collected: (d) 
ways to minimize the burden of the collection of information on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and (e) estimates 
of capital or start-up costs and costs of operation, maintenance, and 
purchase of services to provide information.

    Dated: February 13, 2012.
James H. Freis, Jr.,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2012-6479 Filed 3-16-12; 8:45 am]
BILLING CODE 4810-02-P