[Federal Register Volume 88, Number 188 (Friday, September 29, 2023)]
[Notices]
[Pages 67449-67451]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-21325]


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DEPARTMENT OF THE TREASURY


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request; Individual FinCEN Identifier Application

AGENCY: Departmental Offices, Department of the Treasury.

ACTION: Notice of information collection; request for comments.

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SUMMARY: The Department of the Treasury, on behalf of the Financial 
Crimes Enforcement Network (FinCEN), will submit the individual FinCEN 
identifier application information collection request to the Office of 
Management and Budget (OMB) for review and clearance in accordance with 
the Paperwork Reduction Act of 1995 (PRA), on or after the date of 
publication of this notice. The details included in the information 
collection are listed below. The public is invited to submit comments 
on this information collection request.

DATES: Written comments should be received on or before October 30, 
2023.

ADDRESSES: Written comments on the proposed information collection 
should be sent within 30 days of publication of this notice to 
www.reginfo.gov/public/do/PRAMain. Find this particular information 
collection by selecting ``Currently under 30-day Review--Open for 
Public Comments'' or by using the search function.

FOR FURTHER INFORMATION CONTACT: Copies of the submissions may be 
obtained from Spencer W. Clark by emailing [email protected], calling 
(202) 927-5331, or viewing the entire information collection request at 
www.reginfo.gov.

SUPPLEMENTARY INFORMATION: 

Financial Crimes Enforcement Network (FinCEN)

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 report to FinCEN information about themselves as well as information 
about 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.
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    \1\ 87 FR 59498 (Sept. 30, 2022).
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    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 as a substitute for other information required to 
be reported.\2\
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    \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\ That 
statutory provision, its implementing regulations, and their 
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, amended 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: New collection.
    Description: The final BOI reporting rule requires individuals 
seeking to obtain a FinCEN identifier to submit certain information to 
FinCEN. This is a voluntary collection. Individuals are not required to 
obtain FinCEN identifiers. In order to be issued a FinCEN identifier, 
however, the final

[[Page 67450]]

BOI reporting 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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    Form: Individual FinCEN Identifier Application.
    Affected Public: Any individuals who meet the criteria set forth in 
the final BOI reporting rule may apply for a FinCEN identifier. 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, compared with doing so indirectly through 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 estimated number of reporting companies 
expected to report BOI. 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 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. 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.
    Authority: 44 U.S.C. 3501 et seq.

Spencer W. Clark,
Treasury PRA Clearance Officer.

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 and Date of Birth:

    3. * First name
    4. Middle name (required if individual has a middle name)
    5. * Last name

[[Page 67451]]

    6. Suffix (required if the individual's name has a suffix)
    7. * Date of birth

Current 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 was selected in line 11; if a U.S. Territory was selected in 
line 11, line 12 populates automatically with the selected U.S. 
Territory; if a foreign country was 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 (can only be provided if individual does not 
possess document type listed in 14a, 14b, or 14c)
    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 was selected 
in line 16a and the identifying document is issued by a State; if a 
U.S. Territory was selected in line 16a, line 16b populates 
automatically with the selected U.S. Territory; if a foreign country 
was selected in line 16a, line 16b remains empty)
    c. Local/Tribal (select from list when the United States was 
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 was 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 to FinCEN of 
false or fraudulent information in this application may result in 
civil or criminal penalties.
    a. I agree (check the box to certify)

[FR Doc. 2023-21325 Filed 9-28-23; 8:45 am]
BILLING CODE 4810-02-P