[Federal Register Volume 83, Number 176 (Tuesday, September 11, 2018)]
[Notices]
[Pages 46011-46013]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19656]


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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 Brokers or Dealers in Securities and Mutual Funds

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 brokers or 
dealers in securities and mutual funds to develop and implement 
customer identification programs designed to

[[Page 46012]]

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-2018-0015 and the Office of Management and Budget (``OMB'') 
control number of the information collection(s) you wish to comment on 
(OMB control numbers 1506-0033 and/or 1506-0034).
     Mail: Policy Division, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2018-0015 and the OMB control number of the information collection(s) 
you wish to comment on (OMB control numbers 1506-0033 and/or 1506-
0034).
    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 brokers or dealers in securities and 
mutual funds are found at 31 CFR 1023.220 and 1024.220, respectively.
    In accordance with the requirements of the PRA and its implementing 
regulations, the following information is presented concerning the 
information collection below.
    1. Title: Customer Identification Program for Brokers or Dealers in 
Securities (31 CFR 1023.220).
    OMB Control Number: 1506-0034.
    Abstract: Brokers or dealers in securities are required to 
establish and maintain customer identification programs and provide 
their customers with notice of the programs. (See 68 FR 25113, 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: 3,839.\2\
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    \2\ This number was provided to FinCEN by the U.S. Securities 
and Exchange Commission (``SEC''), and is based on forms filed with 
the SEC in 2017.
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     Estimated Number of Responses: 9,000,000 new brokers or 
dealers in securities accounts opened annually.\3\
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    \3\ This number was provided to FinCEN by the SEC, and is based 
on forms filed with the SEC in 2017.
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     Estimated Average Annual Burden per Response: The 
estimated average burden associated with fulfilling the requirements of 
this rule is 2 minutes per response.\4\
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    \4\ FinCEN did not receive comments on the previous estimate of 
2 minutes of burden per response.
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     Estimated Total Annual Respondent Burden: 300,000 
hours.\5\
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    \5\ 9 million responses multiplied by 2 minutes per responses 
converted to hours equals 300,000 hours.
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    2. Title: Customer Identification Programs for Mutual Funds (31 CFR 
1024.220).
    OMB Control Number: 1506-0033.
    Abstract: Mutual funds are required to implement and maintain 
customer identification programs and provide their customers with 
notice of the programs. (See 68 FR 25131, 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: 1,591.\6\
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    \6\ This number was provided to FinCEN by the SEC, and is based 
on forms filed with the SEC in 2017.
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     Estimated Number of Responses: 20,000,000 new mutual fund 
accounts opened annually.\7\
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    \7\ This estimate was provided to FinCEN by the SEC, and is 
based on publicly available information as of 2017.
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     Estimated Average Annual Burden per Response: The 
estimated average burden associated with fulfilling the requirements of 
this rule is 2 minutes per response.\8\
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    \8\ FinCEN did not receive comments on the previous estimate of 
2 minutes of burden per response.
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     Estimated Total Annual Respondent Burden: 666,667 
hours.\9\
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    \9\ 20 million responses multiplied by 2 minutes per responses 
converted to hours equals 666,667 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

[[Page 46013]]

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. 2018-19656 Filed 9-10-18; 8:45 am]
 BILLING CODE 4810-02-P