[Federal Register Volume 88, Number 10 (Tuesday, January 17, 2023)]
[Notices]
[Pages 2764-2766]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-00708]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Agency Information Collection Activities; Proposed Collection; 
Comment Request; Individual FinCEN Identifiers

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

ACTION: Notice and request for comments.

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SUMMARY: FinCEN invites all interested parties to comment on the 
application that will be used to collect information from individuals 
who seek to obtain a FinCEN identifier, consistent with the Beneficial 
Ownership Information

[[Page 2765]]

Reporting Requirements final rule that was published on September 30, 
2022. Obtaining a FinCEN identifier is voluntary; however, individuals 
who seek to obtain a FinCEN identifier must submit an application and 
update the information provided on the application as necessary. The 
details included in the information collection are listed below. This 
request for comment is made pursuant to the Paperwork Reduction Act of 
1995.

DATES: Written comments are welcome and must be received on or before 
March 20, 2023.

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-2023-0001 and the specific Office of Management and Budget (OMB) 
control number 1506-0076.
     Mail: Policy Division, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2023-0001 and OMB control number 1506-0076.
    Please submit comments by one method only. Comments will be 
reviewed consistent with the Paperwork Reduction Act of 1995 (PRA) and 
applicable OMB regulations and guidance. 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 1-800-
767-2825 or electronically at https://www.fincen.gov/contact.

SUPPLEMENTARY INFORMATION: 

I. Statutory and Regulatory Provisions

    FinCEN issued the Beneficial Ownership Information Reporting 
Requirements final rule on September 30, 2022 (``final BOI reporting 
rule'').\1\ The final BOI reporting rule requires certain legal 
entities to file with FinCEN reports that identify the beneficial 
owners of the entity. Entities created or registered to do business on 
or after January 1, 2024, must also identify the individual who 
directly filed the document with specified governmental authorities 
that created the entity or registered it to do business, as well as the 
individual who was primarily responsible for directing or controlling 
such filing if more than one individual was involved in the filing of 
the document. Further, the regulations describe who must file a report, 
what information must be provided, and when a report is due. Entities 
must certify that the report is true, correct, and complete. The rule 
also sets out various requirements for individuals and entities that 
seek to obtain a FinCEN identifier, which can be used in certain 
circumstances to substitute for other information required to be 
reported.\2\
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    \1\ 87 FR 59498 (Sept. 30, 2022).
    \2\ See 31 CFR 1010.380(b)(4). ``FinCEN identifier'' means the 
unique identifying number assigned by FinCEN to an individual or 
reporting company upon request, subject to certain conditions.
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    These regulations implement Section 6403 of the Corporate 
Transparency Act (CTA), enacted into law as part of the National 
Defense Authorization Act for Fiscal Year 2021 (NDAA).\3\ These 
requirements are intended to help prevent and combat money laundering, 
terrorist financing, corruption, tax fraud, and other illicit activity, 
while minimizing the burden on reporting entities.
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    \3\ Specifically, the CTA is Title LXIV of the William M. (Mac) 
Thornberry National Defense Authorization Act for Fiscal Year 2021, 
Public Law 116-283 (Jan. 1, 2021). Division F of the NDAA is the 
Anti-Money Laundering Act of 2020, which includes the CTA. Section 
6403 of the CTA, among other things, amends the Bank Secrecy Act 
(BSA) by adding a new section 5336, Beneficial Ownership Information 
Reporting Requirements, to subchapter II of chapter 53 of title 31, 
United States Code.
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II. Paperwork Reduction Act of 1995 \4\
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    \4\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
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    Title: Individual FinCEN Identifiers.
    OMB Control Number: 1506-0076.
    Type of Review: Regular.
    Description: The final BOI reporting rule requires the collection 
of information from individuals in order to issue them a FinCEN 
identifier. This is a voluntary collection. Individuals are not 
required to obtain FinCEN identifiers; however, in order to be issued a 
FinCEN identifier, the rule requires individuals to file applications 
electronically with FinCEN that contain certain information about 
themselves. Individuals are also required to submit updates of their 
identifying information as needed. FinCEN will store such information 
in its beneficial ownership information (BOI) database for access by 
authorized users. (Entities will not use the FinCEN identifier 
application to request a FinCEN identifier; instead, entities will 
request a FinCEN identifier when they submit a BOI report.\5\)
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    \5\ FinCEN is not separately calculating a cost estimate for 
entities requesting a FinCEN identifier, because FinCEN assumes this 
would already be accounted for in the process and cost of submitting 
the BOI reports.
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    Report: None.
    Affected Public: Any individuals who meet the statutory criteria 
could apply for a FinCEN identifier under the rule. However, the 
primary reasons for individual beneficial owners to apply for a FinCEN 
identifier likely include data security (where an individual may see 
less risk in submitting personal identifiable information to FinCEN 
directly and exclusively, compared with doing so indirectly through one 
or more individuals at one or more reporting companies) and 
administrative efficiency (where an individual is likely to be 
identified as a beneficial owner of numerous reporting companies). 
Company applicants who are responsible for registering many reporting 
companies may have a similar incentive to request a FinCEN identifier 
in order to limit the number of companies with access to their personal 
information.
    Estimated Number of Respondents: FinCEN estimates that the number 
of individuals who will apply for a FinCEN identifier will likely be 
relatively low. Specifically, FinCEN estimates that number to be 
approximately 1 percent of the reporting company estimates. FinCEN 
assumes that, similar to reporting companies' initial filings, there 
would be an initial influx of applications for a FinCEN identifier that 
would then decrease to a smaller annual rate of requests after Year 1 
(2024). Therefore, FinCEN estimates that 325,569 individuals will apply 
for a FinCEN identifier during Year 1 (2024) and 49,985 individuals 
will apply for a FinCEN identifier annually thereafter.\6\ The total 
five-year average of expected FinCEN identifier applications is 
105,102. To estimate the number of updated reports for individuals' 
FinCEN identifier information per year, FinCEN used the methodology 
explained in the final BOI reporting rule to calculate, and then total, 
monthly updates based on the number of FinCEN identifier applications 
received in Year 1 (2024). FinCEN applied the monthly probability of 
0.0068021 (8.16 percent, the annual likelihood of a change in address, 
divided by 12 to find a monthly rate). This analysis estimated 12,180 
updates in Year 1 (2024) and 26,575 annually thereafter.\7\ The total 
five-year average of estimated FinCEN identifier updates is 23,696.
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    \6\ 32,556,929 x 0.01 = 325,569 and 4,998,468 x 0.01 = 49,985, 
respectively.
    \7\ Refer to the final BOI reporting rule RIA cost analysis for 
the underlying sources and analysis related to these estimates. See 
87 FR 59562-59579 (Sept. 30, 2022).
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    Frequency of Response: As required.
    Estimated Time per Respondent: FinCEN anticipates that initial 
FinCEN identifier applications would require

[[Page 2766]]

approximately 20 minutes (10 minutes to read the form and understand 
the information required, and 10 minutes to fill out and file the 
request, including attaching an image of an acceptable identification 
document), given that the information to be submitted to FinCEN would 
be readily available to the person requesting the FinCEN identifier. 
FinCEN estimates that updates would require 10 minutes (10 minutes to 
fill out and file the update).
    Estimated Total Reporting Burden Hours: FinCEN estimates the total 
burden hours of individuals initially applying for a FinCEN identifier 
during Year 1 (2024) to be 108,535,\8\ with an annual burden of 16,662 
hours thereafter.\9\ The five-year average of initial application 
burdens is 35,034 hours. FinCEN estimates the burden hours of 
individuals updating information related to FinCEN identifiers to be 
2,030 in Year 1 (2024),\10\ with an annual burden of 4,429 hours 
thereafter.\11\ The five-year average of updated application burdens is 
3,949 hours. The total five-year average of time burdens is 38,983.
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    \8\ 325,569 x (20/60) = 108,535.
    \9\ 49,985 x (20/60) = 16,662.
    \10\ 12,180 x (10/60) = 2,030.
    \11\ 26,575 x (10/60) = 4,429.
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    Estimated Total Reporting Cost: The total cost of FinCEN identifier 
applications for individuals in Year 1 (2024) is estimated to be $6.2 
million, with an annual cost of $945,667 thereafter.\12\ The five-year 
average cost of initial applications is $1,988,431. The total cost of 
FinCEN identifier updates for individuals in Year 1 (2024) is estimated 
to be $115,219, with an annual cost of $251,386 thereafter.\13\ The 
five-year average cost of updated applications is $224,153. The total 
five-year average cost is $2,212,584.
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    \12\ ($56.76 x (20/60)) x 325,569 = $6,159,488.81 and ($56.76 x 
(20/60)) x 49,985 = $945,666.84.
    \13\ ($56.76 x (10/60)) x 12,180 = $115,218.68 and ($56.76 x 
(10/60)) x 26,575 = $251,386.22.
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Request for Comments

    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a valid 
OMB control number. Comments submitted in response to this notice will 
be summarized and 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 technology; 
and (e) estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services required to provide information.

Himamauli Das,
Acting Director, Financial Crimes Enforcement Network.

Appendix--FinCEN Identifier Application Summary of Data Fields

    Note:  Form is only available to persons who have already 
obtained login.gov accounts and have signed in through login.gov. 
Lines that must be filled in for a report to be accepted are 
identified with the * symbol next to the line number. Italicized 
text provides a description and/or explanation of lines and response 
options for purposes of this PRA notice.

Filing Information

1. FinCEN ID (assigned by FinCEN and cannot be edited; populates 
automatically if individual has already applied for and received a 
FinCEN Identifier, based on the linkage empty if filer has not 
already received a FinCEN Identifier)
2. Date Last Amended (assigned by FinCEN and cannot be edited; 
populates automatically with the date the information associated 
with the FinCEN Identifier was last updated if individual has 
already applied for and received a FinCEN Identifier, based on the 
linkage between login.gov account and FinCEN Identifier assigned to 
the account; line 2 is empty if filer has not already received a 
FinCEN Identifier)

Part I. Individual Information

Full legal name:
3. * First name
4. Middle name (required if individual has a middle name)
5. * Last name
6. Suffix (required if the individual's name has a suffix)
Date of birth:
7. * Date of birth
    Address: (report both business address and residential address 
if the FinCEN ID will be used for both a Company Applicant and a 
Beneficial Owner)
8. * Address type (check the box that applies to the type of address 
to be provided in lines 9-13)
    a. Residential address
    b. Business address
9. * Address (number, street, and apt. or suite no.)
10. * City
11. * Country/Jurisdiction (select from list of countries/
jurisdictions)
12. * State (select from list when United States, Canada, or Mexico 
is the country/jurisdiction selected in line 11; if a U.S. Territory 
is the country/jurisdiction selected in line 11, line 12 populates 
automatically with the selected U.S. Territory; if a foreign country 
is the country/jurisdiction selected in line 11, line 12 remains 
empty)
13. * ZIP/Foreign postal code
Form of identification and issuing jurisdiction:
14. * Identifying document type (select one from list of lines 14a-
14d)
    a. State-issued driver's license
    b. State/local/Tribe-issued ID
    c. U.S. passport
    d. Foreign passport
15. * Identifying document number
16. * Identifying document issuing jurisdiction (select country/
jurisdiction in line 16a and complete lines 16b-16d if applicable)
    a. Country/Jurisdiction (select from list of countries/
jurisdictions)
    b. State (select from list when the United States is the 
country/jurisdiction selected in line 16a and the identifying 
document is issued by a State; if a U.S. Territory is the country/
jurisdiction selected in line 16a, line 16b populates automatically 
with the selected U.S. Territory; if a foreign country is the 
country/jurisdiction selected in line 16a, line 16b remains empty)
    c. Local/Tribal (select from list when the United States is the 
country/jurisdiction selected in line 16a and the identifying 
document is issued by a local jurisdiction or Tribe; if local 
jurisdiction or Tribe is not included in the list, select ``Other'' 
and go to line 16d; if a U.S. Territory or foreign country is the 
country/jurisdiction selected in line 16a, line 16c remains empty)
    d. Other local/Tribal name (enter name of local jurisdiction or 
Tribe that was not included in the list for line 16c)
17. * Identifying document image (attach image of identifying 
document referred to in lines 14-16) (upload instructions will be 
provided here)

Certification

18. * I certify that the information furnished is true, correct, and 
complete. I understand that the willful provision of false or 
fraudulent beneficial ownership information to FinCEN may result in 
civil or criminal penalties.
    a. I agree (check the box to certify)

[FR Doc. 2023-00708 Filed 1-13-23; 8:45 am]
BILLING CODE 4810-02-P