[Federal Register Volume 85, Number 19 (Wednesday, January 29, 2020)]
[Notices]
[Pages 5276-5278]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01526]


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DEPARTMENT OF THE TREASURY


Renewal Without Change of Information Collection Requirements in 
Connection With the Imposition of a Special Measure Concerning the 
Islamic Republic of Iran as a Jurisdiction of Primary Money Laundering 
Concern

AGENCY: Financial Crimes Enforcement Network (``FinCEN''), Treasury.

ACTION: Notice and request for comments.

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SUMMARY: As part of a continuing effort to reduce paperwork and 
respondent burden, FinCEN invites comment on a renewal, without change, 
to information

[[Page 5277]]

collection requirements finalized on November 4, 2019, imposing a 
special measure with respect to the Islamic Republic of Iran as a 
jurisdiction of primary money laundering concern. This request for 
comments is being made pursuant to the Paperwork Reduction Act of 1995.

DATES: Written comments are welcome and must be received on or before 
March 30, 2020.

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-2020-0001 and the specific Office of Management and Budget 
(``OMB'') control number 1506-0074.
     Mail: Global Investigation Division, Financial Crimes 
Enforcement Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket 
Number FINCEN-2020-0001 and OMB control number 1506-0074.
    Please submit comments by one method only. 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 Resource Center at 1-800-767-
2825 or 1-703-905-3591 (not a toll free number) and select option 3 for 
regulatory questions. Email inquiries can be sent to [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

a. Statutory Provisions

    On October 26, 2001, the President signed into law the Uniting and 
Strengthening America by Providing Appropriate Tools Required to 
Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 (the 
USA PATRIOT Act). Title III of the USA PATRIOT Act amended the anti-
money laundering (AML) provisions of the Bank Secrecy Act (BSA), 
codified at 12 U.S.C. 1829b, 12 U.S.C. 1951-1959, and 31 U.S.C. 5311-
5314, 5316-5332, to promote the prevention, detection, and prosecution 
of international money laundering and the financing of terrorism. 
Regulations implementing the BSA appear at 31 CFR Chapter X. The 
authority of the Secretary of the Treasury (the Secretary) to 
administer the BSA and its implementing regulations has been delegated 
to the Director of FinCEN.\1\
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    \1\ Therefore, references to the authority of the Secretary of 
the Treasury under Section 311 of the USA PATRIOT Act apply equally 
to the Director of FinCEN.
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    Section 311 of the USA PATRIOT Act (Section 311), codified at 31 
U.S.C. 5318A, grants FinCEN the authority, upon finding that reasonable 
grounds exist for concluding that a foreign jurisdiction, financial 
institution, class of transactions, or type of account is of ``primary 
money laundering concern,'' to require domestic financial institutions 
and financial agencies to take certain ``special measures'' to address 
the primary money laundering concern.
    FinCEN may impose one or more of these special measures in order to 
protect the U.S. financial system from these threats. Special measures 
one through four, codified at 31 U.S.C. 5318A(b)(1)-(b)(4), impose 
additional recordkeeping, information collection, and reporting 
requirements on covered U.S. financial institutions. The fifth special 
measure, codified at 31 U.S.C. 5318A(b)(5), allows FinCEN to impose 
prohibitions or conditions on the opening or maintenance of certain 
correspondent accounts.

b. Overview of the Current Regulatory Provisions Regarding Special 
Measures Concerning the Islamic Republic of Iran

    FinCEN issued a final rule on November 4, 2019, imposing the fifth 
special measure to prohibit U.S. financial institutions from opening or 
maintaining a correspondent account for, or on behalf of, Iranian 
banking institutions. (84 FR 59302). The rule further prohibits U.S. 
financial institutions from processing transactions for the 
correspondent account of a foreign bank in the United States if such a 
transaction involves an Iranian financial institution, and requires 
institutions to apply special due diligence to guard against such use 
by Iranian financial institutions. See 31 CFR 1010.661.
Information Collection Under the Fifth Special Measure
    The notification requirement in section 1010.661(b)(3)(i)(A) is 
intended to enhance cooperation from correspondent account holders in 
denying Iran access to the U.S. financial system. The information 
required to be maintained by section 1010.661(b)(4)(i) will be used by 
federal agencies and certain self-regulatory organizations to verify 
compliance by covered financial institutions with the provisions of 31 
CFR 1010.661.

II. Paperwork Reduction Act (PRA) 2
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    \2\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
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    Title: Renewal of Information Collection Requirements in connection 
with the Imposition of a Special Measure concerning the Islamic 
Republic of Iran as a Jurisdiction of Primary Money Laundering Concern.
    Office of Management and Budget (OMB) Control Number: 1506-0074.
    Abstract: FinCEN is issuing this notice to renew the OMB control 
number for the imposition of a special measure against the Islamic 
Republic of Iran as a jurisdiction of primary money laundering concern 
pursuant to the authority contained in 31 U.S.C. 5318A. See 31 CFR 
1010.661.
    Type of Review: Renewal without change of a currently approved 
collection.
    Affected Public: Businesses and certain not-for-profit 
institutions.
    Frequency: One time notification. See 31 CFR 1010.661(b)(3)(i)(A) 
and 1010.661(b)(4)(i).
    Estimated Number of Respondents: 23,615.\3\
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    \3\ The Estimated Number of Respondents is based on the sum of 
the following numbers:
     5,358 banks [Federal Deposit Insurance Corporation, Key 
Statistics web page, April 25, 2019];
     5,375 federally-insured credit unions [National Credit 
Union Administration, Quarterly Credit Union Data Summary, December 
31, 2018];
     125 privately-insured credit unions [General 
Accountability Office, PRIVATE DEPOSIT INSURANCE: Credit Unions 
Largely Complied with Disclosure Rules, but Rules Should Be 
Clarified, March 2017];
     1,130 introducing brokers [National Futures Association 
website, March 31, 2019];
     64 futures commission merchants [National Futures 
Association website, March 31, 2019];
     3,607 securities firms [Financial Industry Regulatory 
Authority website, December 31, 2018]; and,
     7,956 U.S. mutual funds [Investment Company Institute, 
2018 Factbook, 2018].
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    Estimated Time per Respondent: 1 hour.
    Estimated Total Annual Burden: 23,615 hours.
    FinCEN's estimated number of affected financial institutions 
accounts for all domestic financial institutions that could potentially 
maintain correspondent accounts for foreign banks, and is designed to 
ensure that all U.S. financial institutions are conducting their due 
diligence and not processing transactions that may involve Iranian 
financial institutions.
    There are approximately 23,615 such financial institutions doing 
business in the United States. In addition, all U.S. persons, including 
U.S. financial institutions, currently exercise some degree of due 
diligence in order to comply with existing U.S. sanctions programs 
applicable to Iran.
    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 it displays a valid control number assigned by OMB. 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. 2020-01526 Filed 1-28-20; 8:45 am]
BILLING CODE 4810-02-P