[Federal Register Volume 87, Number 173 (Thursday, September 8, 2022)]
[Notices]
[Pages 55083-55085]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-19375]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities; Information Collection 
Revision; Submission for OMB Review; Bank Secrecy Act/Money Laundering 
Risk Assessment

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.

ACTION: Notice and request for comment.

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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites comment on a revised information 
collection as required by the Paperwork Reduction Act of 1995 (PRA). In 
accordance with the requirements of the PRA, the OCC may not conduct or 
sponsor, and the respondent is not required to respond to, an 
information collection unless it displays a currently valid Office of 
Management and Budget (OMB) control number. The OCC is soliciting 
comment concerning its information collection entitled, ``Bank Secrecy 
Act/Money Laundering Risk Assessment,'' also known as the Money 
Laundering Risk (MLR) System. The OCC also is giving notice that it has 
sent the collection to OMB for review.

DATES: Comments must be submitted by October 11, 2022.

ADDRESSES: Commenters are encouraged to submit comments by email, if 
possible. You may submit comments by any of the following methods:
     Email: [email protected].
     Mail: Chief Counsel's Office, Attention: Comment 
Processing, 1557-0231, Office of the Comptroller of the Currency, 400 
7th Street SW, Suite 3E-218, Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
     Fax: (571) 465-4326.
    Instructions: You must include ``OCC'' as the agency name and 
``1557-0231'' in your comment. In general, the OCC will publish 
comments on www.reginfo.gov without change, including any business or 
personal information provided, such as name and address information, 
email addresses, or phone numbers. Comments received, including 
attachments and other supporting materials, are part of the public 
record and subject to public disclosure. Do not include any information 
in your comment or supporting materials that you consider confidential 
or inappropriate for public disclosure.
    Written comments and recommendations for the proposed information 
collection should also be sent within 30 days of publication of this 
notice to www.reginfo.gov/public/do/PRAMain. You can find this 
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.
    On June 8, 2022, the OCC published a 60-day notice for this 
information collection (87 FR 34927). You may review comments and other 
related materials that pertain to this information collection following 
the close of the 30-day comment period for this notice by the method 
set forth in the next bullet.
     Viewing Comments Electronically: Go to www.reginfo.gov. 
Hover over the ``Information Collection Review'' tab and click on 
``Information Collection Review'' from the drop-down menu. From the 
``Currently under Review'' drop-down menu, select ``Department of 
Treasury'' and then click ``submit.'' This information collection can 
be located by searching by OMB control number ``1557-0231'' or ``Bank 
Secrecy Act/Money Laundering Risk Assessment.'' Upon finding the 
appropriate information collection, click on the related ``ICR 
Reference Number.'' On the next screen, select ``View Supporting 
Statement and Other Documents'' and then click on the link to any 
comment listed at the bottom of the screen.
     For assistance in navigating www.reginfo.gov, please 
contact the Regulatory Information Service Center at (202) 482-7340.

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance 
Officer, (202) 874-5090, Chief Counsel's Office, Office of the 
Comptroller of the Currency, 400 7th Street SW, Washington, DC 20219. 
If you are deaf, hard of hearing, or have a speech disability please 
dial 7-1-1 to access telecommunications relay services.

SUPPLEMENTARY INFORMATION: Under the PRA, Federal agencies must obtain 
approval from the OMB for each collection of information they conduct 
or sponsor. ``Collection of information'' is defined in 44 U.S.C. 
3502(3) and 5 CFR 1320.3(c) to include questions posed to agencies, 
instrumentalities, or employees of the United States, if the results 
are to be used for general statistical purposes, that is, if the 
results are to be used for statistical compilations of general public 
interest, including compilations showing the status or implementation 
of Federal activities and programs. The OCC asks that OMB extend its 
approval of the collection in this document.
    Title: Bank Secrecy Act/Money Laundering Risk Assessment.
    OMB Control No: 1557-0231.
    Type of Review: Regular.
    Affected Public: Business or other for-profit.
    Abstract: The MLR System enhances the ability of examiners and bank 
management to identify and evaluate Bank Secrecy Act/Money Laundering 
and Office of Foreign Asset Control (OFAC) sanctions risks associated 
with banks' products, services, customers, and locations. As new 
products and services are introduced, existing products and services 
change, and banks expand through mergers and acquisitions, banks' 
evaluation of money laundering and terrorist financing risks should 
evolve as well. Consequently, the MLR System risk assessment is an 
important tool for the OCC's Bank Secrecy Act/Anti-Money Laundering and 
OFAC supervision activities because it allows the OCC to better 
identify those institutions, and business activities within 
institutions, that may pose heightened risk and then allocate 
examination resources accordingly. This risk assessment is critical for 
protecting U.S. financial institutions of all sizes from potential 
abuse from money laundering and terrorist financing. The MLR System 
also provides the OCC with information regarding products or customers 
that may be experiencing difficulties or

[[Page 55084]]

challenges maintaining banking services. MLR data assists banks' 
management of BSA/AML programs and provides a starting point for banks 
to develop their risk assessments. An appropriate risk assessment 
allows controls to be effectively implemented for the lines of 
business, products, or entities that would elevate Bank Secrecy Act/
Money Laundering and OFAC compliance risks.
    The OCC collects MLR information for community and trust banks 
supervised by the OCC.
    The OCC's annual Risk Summary Form (RSF) is fully automated making 
data entry quick and efficient and provides an electronic record for 
banks and the OCC. The RSF collects data about different products, 
services, customers, and geographies (PSCs). The OCC is introducing a 
few changes to the 2022 RSF to further improve the quality of the 
collected data, streamline the collection process and more accurately 
reflect the risks associated with the customers served by banks. For 
2022, the RSF will include three changes:
    1. The addition of six new PSCs: cash transactions, marijuana-
related businesses, ATM Operators, crypto assets--custody, stablecoin 
issuance, and stablecoin payments.
    2. The addition of two new customer types under the money 
transmitters category: administrators and exchangers of virtual 
currency; and crypto ATM operators.
    3. The deletion of four existing PSCs: boat/airplane, bulk cash/
currency repatriation customers, bulk cash/currency repatriation, and 
international branches.
    The addition of these six new PSC categories increases the number 
of data collection points from 69 to 71 as shown in the table below:

 
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              No.                          Existing PSCs               No.                 New PSCs
----------------------------------------------------------------------------------------------------------------
1.............................  Convenience Stores                         1  Cash Transactions
2.............................  Liquor Stores                              2  Marijuana Related Businesses
3.............................  Domestic Charitable Organizations          3  ATM Operators
4.............................  Jewelry, Gem and Precious Metals           4  Crypto-Assets Custody
                                 Dealers
5.............................  Casinos                                    5  Stablecoin Issuance
6.............................  Car Dealers                                6  Stablecoin Payments
7.............................  Boat/Airplane                              7  Convenience Stores
8.............................  Domestic Private Banking                   8  Liquor Stores
9.............................  Domestic Commercial Letters of             9  Domestic Charitable Organizations
                                 Credit
10............................  Stand-by Letters of Credit                10  Jewelry, Gem and Precious Metals
                                                                               Dealers
11............................  Customers/Accounts opened through         11  Casinos
                                 the Internet, Mail, Wire or Phone
                                 (non-branch)
12............................  Domestic Deposit Brokers                  12  Car Dealers
13............................  Travel Agencies                           13  Domestic Private Banking
14............................  Broker Dealers                            14  Domestic Commercial Letters of
                                                                               Credit
15............................  Telemarketers                             15  Stand-by Letters of Credit
16............................  Remotely Created Check Customers          16  Customers/Accounts opened through
                                                                               the Internet, Mail, Wire or Phone
                                                                               (non-branch)
17............................  Domestic Remote Deposit Capture           17  Domestic Deposit Brokers
                                 Customers
18............................  Third Party Senders                       18  Travel Agencies
19............................  Issuance of Traveler's Checks,            19  Broker Dealers
                                 Official Bank Checks & Money
                                 Orders
20............................  Domestic Wire Transfers                   20  Telemarketers
21............................  Domestic PUPID Wire Transfers             21  Remotely Created Check Customers
22............................  ACH                                       22  Domestic Remote Deposit Capture
                                                                               Customers
23............................  Remotely Created Checks                   23  Third Party Senders
24............................  Domestic Remote Deposit Capture           24  Issuance of Traveler's Checks,
                                                                               Official Bank Checks & Money
                                                                               Orders
25............................  Non-Resident Alien Accounts               25  Domestic Wire Transfers
26............................  Politically Exposed Persons               26  Domestic PUPID Wire Transfers
27............................  Foreign Off-Shore Corporations            27  ACH
28............................  Foreign Deposit Brokers                   28  Remotely Created Checks
29............................  Foreign Charitable Organizations          29  Domestic Remote Deposit Capture
30............................  Import/Export                             30  Non-Resident Alien Accounts
31............................  Foreign Remote Deposit Capture            31  Politically Exposed Persons
                                 Customers
32............................  Bulk Cash/Currency Repatriation           32  Foreign Off-Shore Corporations
                                 Customers
33............................  International Branches                    33  Foreign Deposit Brokers
34............................  Foreign Correspondent Accounts            34  Foreign Charitable Organizations
35............................  Payable Through Accounts                  35  Import/Export
36............................  Pouch Services                            36  Foreign Remote Deposit Capture
                                                                               Customers
37............................  Foreign Bank Affiliate                    37  Foreign Correspondent Accounts
38............................  International Department                  38  Payable Through Accounts
39............................  International Private Banking             39  Pouch Services
40............................  Embassy & Consulate Banking               40  Foreign Bank Affiliate
41............................  International Commercial Letters of       41  International Department
                                 Credit
42............................  International Bank Drafts                 42  International Private Banking
43............................  International Wire Transfers              43  Embassy & Consulate Banking
44............................  International PUPID Wire Transfers        44  International Commercial Letters
                                                                               of Credit
45............................  Remittance Products                       45  International Bank Drafts
46............................  Cross-Border ACH                          46  International Wire Transfers
47............................  International Remote Deposit              47  International PUPID Wire Transfers
                                 Capture
48............................  Bulk Cash/Currency Repatriation           48  Remittance Products
49............................  Domestic Casas de Cambio/Currency         49  Cross-Border ACH
                                 Exchange

[[Page 55085]]

 
50............................  Foreign Casas de Cambio/Currency          50  International Remote Deposit
                                 Exchange                                      Capture
51............................  Money Transmitters                        51  Domestic Casas de Cambio/Currency
                                                                               Exchange
52............................  Check Cashers                             52  Foreign Casas de Cambio/Currency
                                                                               Exchange
53............................  Issuers or Sellers of Traveler            53  Money Transmitters
                                 Checks or Money Orders
54............................  Providers of Prepaid Access               54  Check Cashers
55............................  Sellers of Prepaid Access                 55  Issuers or Sellers of Traveler
                                                                               Checks or Money Orders
56............................  Prepaid Cards                             56  Providers of Prepaid Access
57............................  Prepaid Card Programs--Third Party        57  Sellers of Prepaid Access
                                 Sponsored
58............................  Prepaid Card Programs--Bank               58  Prepaid Cards
                                 Sponsored
59............................  Prepaid Cardholders                       59  Prepaid Card Programs--Third Party
                                                                               Sponsored
60............................  Prepaid Card Program Managers             60  Prepaid Card Programs--Bank
                                                                               Sponsored
61............................  Domestic Charitable Trusts &              61  Prepaid Cardholders
                                 Foundations
62............................  Foreign Charitable Trusts &               62  Prepaid Card Program Managers
                                 Foundations
63............................  Custodial Accounts                        63  Domestic Charitable Trusts &
                                                                               Foundations
64............................  Investment Advisory Accounts              64  Foreign Charitable Trusts &
                                                                               Foundations
65............................  Revocable Trusts                          65  Custodial Accounts
66............................  Foreign Grantor or Beneficiaries          66  Investment Advisory Accounts
67............................  Loans to Closely Held Corporations        67  Revocable Trusts
68............................  Brokerage Department/Operations           68  Foreign Grantor or Beneficiaries
69............................  Investment Advisory/Management            69  Loans to Closely Held Corporations
                                ...................................       70  Brokerage Department/Operations
                                ...................................       71  Investment Advisory/Management
----------------------------------------------------------------------------------------------------------------
* PSC category deletions (from the existing PSC column) and additions (from the new PSC column are italicized
  and denoted in bold.

    The OCC estimates the burden of this collection of information as 
follows:
    Burden Estimates:
    Community and trust bank population:
    Estimated Number of Respondents: 970.
    Estimated Number of Responses: 970.
    Frequency of Response: Annually.
    Estimated Annual Burden: 7,760 hours.
    Comments: On June 8, 2022, the OCC published a 60-day notice in the 
Federal Register concerning the collection, 87 FR 34927. The OCC 
received three comments from the public, including one from a banking 
association regarding the accuracy of the OCC's information collection 
burden estimate and the impact the changes in the PSCs would have on 
the data collection process. The respondent stated the OCC did not 
provide a basis for its estimated burden of 7,760 hours from an 
estimated 970 respondents. Per the respondent, the changes proposed to 
the MLR would require more than the eight hours per respondent 
estimated by the OCC and that the OCC had underestimated both the staff 
time and financial resources needed to update reporting systems to 
reflect the proposed changes. The respondent also commented that the 
introduction of six new products, services, customers, and geography 
categories (PSCs) and the resulting changes in the numbering and 
location of these PSCs would unnecessarily complicate the data 
collection process, require significant staff retraining, and 
potentially result in mis-categorizations of the PSCs.
    The OCC has observed that the systems most banks currently maintain 
for MLR data collection purposes already support ready access to the 
data; thus, the changes to the MLR will not require additional 
significant investment in technology or systems to collect and report 
this data. The 7,760 hours in the OCC's estimated burden already 
includes an additional two hours to account for the two new MLR PSCs. 
Based on these existing systems and the changes to the MLR platform 
described below, the addition of the two hours should be sufficient to 
account for any system changes banks may have to make to collect and 
report the data for the new PSCs. With planning and minor programming 
changes to bank systems, the additional MLR data collection burden 
associated with the proposed changes will be minimal for banks of all 
sizes.
    The introduction of the six new PSCs and the resulting changes in 
the listing numeration of the PSCs is a minor modification and will not 
significantly impact the data collection and reporting process. 
Recently, the OCC made major changes to the MLR platform that have 
resulted in a more modern, intuitive, and user-friendly collection 
tool. The current data collection platform, and support resources 
offered by the OCC, will assist banks with the data collection process. 
In addition, the OCC offers annual webinars where any changes to the 
data collection process are presented and discussed with bankers. 
During the webinars, bankers are given time to ask questions or raise 
any issues or concerns they may have related to this information 
collection. The changes to the MLR, introduced this year, will be 
discussed in detail during the 2022 MLR Webinar and give bankers 
additional opportunities to provide feedback. Moreover, each year, the 
OCC releases an updated MLR User Guide, complete with detailed 
instructions for banks to report MLR data. Finally, the OCC has a 
dedicated MLR email inbox for bankers to submit MLR-related questions 
and receive timely assistance from the OCC.
    Comments continue to be invited on:
    (a) Whether the collection of information is necessary for the 
proper performance of the functions of the OCC, including whether the 
information has practical utility;
    (b) The accuracy of the OCC'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 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.

Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2022-19375 Filed 9-7-22; 8:45 am]
BILLING CODE 4810-33-P