[Federal Register Volume 83, Number 176 (Tuesday, September 11, 2018)]
[Notices]
[Pages 46015-46016]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19653]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Agency Information Collection Activities; Proposed Renewal: 
Comment Request; Renewal Without Change of Customer Identification 
Programs for Banks, Savings Associations, Credit Unions, Certain Non-
Federally Regulated Banks, Futures Commission Merchants, and 
Introducing Brokers in Commodities

AGENCY: Financial Crimes Enforcement Network (``FinCEN''), U.S. 
Department of the Treasury.

ACTION: Notice and request for comments.

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SUMMARY: FinCEN invites comment on a proposed renewal, without change, 
to information collections found in regulations requiring banks, 
savings associations, credit unions, certain non-federally regulated 
banks, futures commission merchants, and introducing brokers in 
commodities to develop and implement customer identification programs 
designed to allow the covered financial institution to form a 
reasonable belief that it knows the true identity of each customer. 
This request for comment is being made pursuant to the Paperwork 
Reduction Act (``PRA'') of 1995.

DATES: Written comments are welcome and must be received on or before 
November 13, 2018.

ADDRESSES: Comments may be submitted by any of the following methods:
     Federal E-rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments. Refer to Docket Number 
FINCEN-2018-0013 and the Office of Management and Budget (``OMB'') 
control number of the information collection(s) you wish to comment on 
(OMB control numbers 1506-0022 and/or 1506-0026).
     Mail: Policy Division, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2018-0013 and the OMB control number of the information collection(s) 
you wish to comment on (OMB control numbers 1506-0022 and/or 1506-
0026).
    Please submit comments by one method only. Comments will also be 
incorporated to FinCEN's retrospective regulatory review process, as 
mandated by E.O. 12866 and 13563. 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: The FinCEN Resource Center at 800-767-
2825 or electronically at [email protected].

SUPPLEMENTARY INFORMATION: The Bank Secrecy Act (``BSA''), Titles I and 
II of Public Law 91-508, as amended, codified at 12 U.S.C. 1829(b), 12 
U.S.C. 1951-1959, and 31 U.S.C. 5311-5314 and 5316-5332, authorizes the 
Secretary of the Treasury, among other things, to require financial 
institutions to keep records and file reports that are determined to 
have a high degree of usefulness in criminal, tax, and regulatory 
matters or in the conduct of intelligence or counter-intelligence 
activities to protect against international terrorism, and to implement 
counter-money laundering programs and compliance procedures.\1\ Title 
III of the USA PATRIOT Act of 2001, Public Law 107-56, included certain 
amendments to the anti-money laundering provisions of Title II of the 
BSA, 31 U.S.C. 5311 et seq., which are intended to aid in the 
prevention, detection, and prosecution of international money 
laundering and terrorist financing.
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    \1\ Language expanding the scope of the BSA to intelligence or 
counter-intelligence activities to protect against international 
terrorism was added by Section 358 of the Uniting and Strengthening 
America by Providing Appropriate Tools Required to Intercept and 
Obstruct Terrorism Act of 2001, Public Law 107-56.
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    Regulations implementing Title II of the BSA appear at 31 CFR 
Chapter X. The authority of the Secretary of the Treasury to administer 
Title II of the BSA has been delegated to the Director of FinCEN. The 
information collected and retained under the regulation addressed in 
this notice assist Federal, state, and local law enforcement as well as 
regulatory authorities in the identification, investigation and 
prosecution of money laundering and other matters.
    Section 5318(l) of the BSA requires FinCEN to issue regulations 
prescribing customer identification programs for financial 
institutions. Those regulations, at a minimum, must require 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) with respect to banks, savings associations, credit 
unions, and certain non-federally regulated banks are found at 31 CFR 
1020.220. Regulations implementing section 5318(l) with respect to 
futures commission merchants and introducing brokers in commodities are 
found at 31 CFR 1026.220.
    In accordance with the requirements of the PRA and its implementing 
regulations, the following information is

[[Page 46016]]

presented concerning the information collection below.
    1. Title: Customer Identification Programs for Banks, Savings 
Associations, Credit Unions, and Certain Non-Federally Regulated Banks. 
(31 CFR 1020.220).
    OMB Control Number: 1506-0026.
    Abstract: Banks, savings associations, credit unions, and certain 
non-federally regulated banks are required to implement and maintain 
customer identification programs and provide their customers with 
notice of the programs. (See 68 FR 25090, May 9, 2003).
    Current Action: Renewal without change to existing regulations.
    Type of Review: Renewal of a currently approved information 
collection.
    Affected Public: Business, other for-profit institutions, and not-
for-profit institutions.
    Burden:
     Estimated Number of Respondents: 15,960.\2\
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    \2\ This number is a total of the institutions represented in 
the 2017 annual reports of the following regulators: The National 
Credit Union Administration reported 5,573 institutions, the Federal 
Reserve reported 5,180 institutions, the Federal Deposit Insurance 
Corporation reported 3,636 institutions, the Office of the 
Comptroller of the Currency reported 1,446 institutions. In 
addition, a report from the Government Accountability Office 
indicated that approximately 125 credit unions were insured 
privately, for a total of 15,960 institutions.
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     Estimated Average Annual Recordkeeping Burden per 
Respondent: 10 hours.\3\
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    \3\ FinCEN did not receive comments on the previous estimate of 
10 hours of annual recordkeeping burden and 1 hour of annual 
disclosure burden per respondent.
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     Estimated Average Annual Disclosure Burden per Respondent: 
1 hour.
     Estimated Total Annual Respondent Burden: 175,560 
hours.\4\
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    \4\ 15,960 respondents multiplied by 11 hours equals 175,560 
hours.
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    2. Title: Customer Identification Programs for Futures Commission 
Merchants and Introducing Brokers in Commodities (31 CFR 1026.220).
    OMB Control Number: 1506-0022.
    Abstract: Futures commission merchants and introducing brokers in 
commodities are required to implement and maintain customer 
identification programs and provide their customers with notice of the 
programs. (See 68 FR 25149, May 9, 2003).
    Current Action: Renewal without change to existing regulations.
    Type of Review: Renewal of a currently approved information 
collection.
    Affected Public: Business and other for-profit institutions.
    Burden:
     Estimated Number of Respondents: 1,228.\5\
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    \5\ According to the National Futures Association, there are 
currently 1,164 registered introducing brokers in commodities, and 
64 futures commission merchants.
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     Estimated Average Annual Recordkeeping Burden per 
Respondent: 10 hours.\6\
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    \6\ FinCEN did not receive comments on the previous estimate of 
10 hours of annual recordkeeping burden and 1 hour of annual 
disclosure burden per respondent.
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     Estimated Average Annual Disclosure Burden per Respondent: 
1 hour.
     Estimated Total Annual Respondent Burden: 13,508.\7\
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    \7\ 1,228 respondents multiplied by 11 hours equals 13,508 
hours.
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    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. 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.

Jamal El-Hindi,
Deputy Director, Financial Crimes Enforcement Network.
[FR Doc. 2018-19653 Filed 9-10-18; 8:45 am]
 BILLING CODE 4810-02-P