[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
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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