[Federal Register Volume 89, Number 78 (Monday, April 22, 2024)]
[Notices]
[Pages 29427-29432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08529]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Agency Information Collection Activities; Proposed Renewal; 
Comment Request; Renewal Without Change of Anti-Money Laundering 
Programs for Certain Financial Institutions

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

ACTION: Notice and request for comments.

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SUMMARY: As part of its continuing effort to reduce paperwork and 
respondent burden, FinCEN invites comments on the renewal, without 
change, of existing information collection requirements related to Bank 
Secrecy Act regulations that require banks lacking a Federal functional 
regulator, money services businesses, mutual funds, insurance 
companies, dealers in precious metals, precious stones, or jewels, 
operators of credit card systems, and loan or finance companies to 
develop and implement written anti-money laundering (AML) programs. 
This notice does not address requirements that may be imposed under the 
Anti-Money Laundering Act of 2020 (AML Act). Paperwork and respondent 
burden for those requirements will be addressed in a separate notice of 
proposed rulemaking (NPRM). This request for comments is

[[Page 29428]]

made pursuant to the Paperwork Reduction Act of 1995 (PRA).

DATES: Written comments are welcome and must be received on or before 
June 21, 2024.

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-2024-0010 and the specific Office of Management and Budget (OMB) 
control numbers 1506-0020, 1506-0030, and 1506-0035.
     Mail: Policy Division, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2024-0010 and OMB control numbers 1506-0020, 1506-0030, and 1506-0035.
    Please submit comments by one method only. Comments will be 
reviewed consistent with the PRA and applicable OMB regulations and 
guidance. 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's Regulatory Support Section at 
1-800-767-2825 or electronically at [email protected].

SUPPLEMENTARY INFORMATION:

I. Statutory and Regulatory Provisions

    The legislative framework generally referred to as the Bank Secrecy 
Act (BSA) consists of the Currency and Foreign Transactions Reporting 
Act of 1970, as amended by the Uniting and Strengthening America by 
Providing Appropriate Tools Required to Intercept and Obstruct 
Terrorism Act of 2001 (USA PATRIOT Act) \1\ and other legislation, 
including the AML Act.\2\ The BSA is codified at 12 U.S.C. 1829b and 
1951-1960 and 31 U.S.C. 5311-5314 and 5316-5336, and notes thereto, 
with implementing regulations at 31 CFR Chapter X.
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    \1\ USA PATRIOT Act, Pub. L. 107-56.
    \2\ The AML Act was enacted as Division F, sections 6001-6511, 
of the William M. (Mac) Thornberry National Defense Authorization 
Act for Fiscal Year 2021, Pub. L. 116-283, 134 Stat. 3388 (NDAA).
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    The BSA authorizes the Secretary of the Treasury (Secretary) to, 
inter alia, require financial institutions to keep records and file 
reports that are determined to have a high degree of usefulness in 
criminal, tax, or regulatory matters, risk assessments or proceedings, 
or in the conduct of intelligence or counter-intelligence activities to 
protect against terrorism, and to implement anti-money laundering/
countering the financing of terrorism (AML/CFT) programs and compliance 
procedures.\3\ The authority of the Secretary to administer the BSA has 
been delegated to the Director of FinCEN.\4\
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    \3\ Section 358 of the USA PATRIOT Act expanded the purpose of 
the BSA by including a reference to reports and records ``that have 
a high degree of usefulness in intelligence or counterintelligence 
activities to protect against international terrorism.'' See 12 
U.S.C. 1829b(a). Section 6101 of the AML Act further expanded the 
purpose of the BSA to cover such matters as preventing money 
laundering, tracking illicit funds, assessing risk, and establishing 
appropriate frameworks for information sharing. See 31 U.S.C. 5311.
    \4\ Treasury Order 180-01 (Jan. 14, 2020).
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    31 U.S.C. 5318(h)(1) of the BSA mandates that financial 
institutions establish AML/CFT programs to guard against money 
laundering and the financing of terrorism.\5\ Such programs must 
include, at a minimum: (a) the development of internal policies, 
procedures, and controls, (b) the designation of a compliance officer, 
(c) an ongoing employee training program, and (d) an independent audit 
function to test programs.\6\ Pursuant to 31 U.S.C. 5318(h)(2), FinCEN 
issued regulations requiring banks lacking a Federal functional 
regulator (31 CFR 1020.210(b)), money services businesses (MSBs) (31 
CFR 1022.210), mutual funds (31 CFR 1024.210), insurance companies (31 
CFR 1025.210), dealers in precious metals, precious stones, or jewels 
(31 CFR 1027.210), operators of credit card systems (31 CFR 1028.210), 
and loan or finance companies (31 CFR 1029.210) to develop and 
implement written AML programs.
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    \5\ The provision was added to the BSA through Section 352 of 
the USA PATRIOT Act. Section 6101(b) of the AML Act amended the 
provision to include explicit references to terrorism finance.
    \6\ The provision, which was added to the BSA through Section 
352 of the USA PATRIOT Act, authorized FinCEN to prescribe minimum 
standards for AML programs and to exempt certain financial 
institutions from application of those standards. Section 6101(b) of 
the AML Act amended the provision to specify the factors that FinCEN 
must consider in prescribing minimum standards.
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    This notice renews the OMB control numbers associated with these 
specific AML program regulations. This notice is not renewing the OMB 
control numbers associated with other types of financial institutions' 
AML program regulatory requirements at this time for the reasons 
described below. This notice also does not address any changes to 
requirements governing AML programs that FinCEN may make pursuant to 
section 6101(b) of the AML Act; FinCEN will address the paperwork and 
respondent burden of such changes in a separate NPRM, when it proposes 
implementing rules.
    On April 29, 2002, FinCEN issued an interim final rule to provide 
guidance to certain financial institutions concerning implementation of 
statutory requirements related to AML programs. The interim final rule 
provided that banks, savings associations, credit unions, brokers or 
dealers in securities, futures commission merchants, and casinos would 
be deemed to be in compliance if they established and maintained AML 
programs as required by existing FinCEN regulations, or their 
respective Federal regulator or self-regulatory organization (SRO).\7\
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    \7\ See FinCEN, Anti-Money Laundering Programs for Financial 
Institutions Interim Final Rule, 67 FR 21110 (Apr. 29, 2022).
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    Of the types of financial institutions subject to the interim final 
rule, only casinos were already subject to AML program regulations 
issued by FinCEN.\8\ Federally insured depository institutions and 
credit unions were (and have continued to be) required by their 
respective federal functional regulators (as defined in section 509 of 
the Gramm-Leach-Bliley Act (12 U.S.C. 6809) to have AML programs. 
Brokers and dealers in securities and futures commission merchants were 
not then subject to an AML program requirement, and FinCEN stated in 
the interim final rule that it was appropriate to implement section 
5318(h) of the BSA with respect to those types of financial 
institutions through their respective SROs. FinCEN therefore does not 
maintain OMB control numbers for the AML program regulatory 
requirements of banks, savings associations, credit unions, brokers or 
dealers in securities, or futures commission merchants.\9\
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    \8\ See the Department of the Treasury, Amendments to the Bank 
Secrecy Act; Regulations Regarding Reporting and Recordkeeping 
Requirements by Casinos Final Rule, 58 FR 13538 (Mar. 12, 1993) and 
FinCEN, Amendments to the Bank Secrecy Act Regulations Regarding 
Reporting and Recordkeeping Requirements by Casinos Final Rule, 59 
FR 61660 (Dec. 1, 1994).
    \9\ The casino AML program regulations are covered under FinCEN 
OMB control number 1506-0051, which is not scheduled to expire 
before October 2024. The renewal of that control number, therefore, 
will be addressed in a separate FinCEN notice released later this 
year. Since 1987, all federally insured depository institutions and 
credit unions have been required by their Federal regulators to have 
AML programs. The applicable Federal regulator maintains the OMB 
control number for the AML program regulatory requirements of 
depository institutions and credit unions as follows: (a) Office of 
Comptroller of the Currency (AML program regulations at 12 CFR 
21.21--covered by OMB control number 1557-0180); (b) Federal Reserve 
Board (AML program regulations at 12 CFR 208.63--covered by OMB 
control number 7100-0310); (c) Federal Deposit Insurance Corporation 
(AML program regulations at 12 CFR 326.8--covered by OMB control 
number 3064-0087); and (d) National Credit Union Administration (AML 
program regulations at 12 CFR 748.2--covered by OMB control number 
3133-0108). In the 2002 interim final rule, FinCEN also noted it was 
appropriate to implement section 5318(h)(1) of the BSA with respect 
to brokers or dealers in securities and futures commission merchants 
through their respective SROs, because the Securities and Exchange 
Commission (SEC) and the Commodity Futures Trade Commission (CFTC) 
and their SROs significantly accelerated the implementation of AML 
programs for their regulated financial institutions. Accordingly, 31 
CFR 1023.210 and 31 CFR 1026.210 provided that brokers or dealers in 
securities, and futures commission merchants and introducing brokers 
in commodities, respectively, would be deemed to be in compliance 
with the requirements of section 5318(h)(1) of the BSA if they 
implement and maintain AML programs that, among other things, comply 
with rules, regulations, or requirements of their SROs governing 
such programs. The SEC's SRO for brokers and dealers is the 
Financial Industry Regulatory Authority (FINRA). The AML program 
requirements for brokers or dealers in securities is FINRA Rule 331. 
The CFTC's SRO for futures commission merchants is the National 
Futures Association (NFA). The AML program requirements for futures 
commission merchant and introducing brokers in commodities is NFA 
Rule 2-9(c). The SROs are not required to comply with the PRA. 
Therefore, there are no OMB control numbers for the AML program 
regulatory requirements of brokers or dealers in securities, futures 
commission merchants, and introducing brokers in commodities.

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[[Page 29429]]

    In implementing section 6101(b) of the AML Act, FinCEN intends to 
propose amendments to FinCEN's AML program regulations, including 
regulations for banks lacking a Federal functional regulator, MSBs, 
mutual funds, insurance companies, dealers in precious metals, precious 
stones, or jewels, operators of credit card systems, and loan or 
finance companies. FinCEN will assess the PRA burden of these 
amendments when it issues an NPRM; it does not do so here.

II. Paperwork Reduction Act of 1995 10
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    \10\ Paperwork Reduction Act of 1995, Pub. L. 104-13, 44 U.S.C. 
3506(c)(2)(A).
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    Title: AML program requirements for banks lacking a Federal 
functional regulator (31 CFR 1020.210(b)), MSBs (31 CFR 1022.210), 
mutual funds (31 CFR 1024.210), insurance companies (31 CFR 1025.210), 
dealers in precious metals, precious stones, or jewels (31 CFR 
1027.210), operators of credit card systems (31 CFR 1028.210), and loan 
or finance companies (31 CFR 1029.210).
    OMB Control Numbers: 1506-0020, 1506-0030, and 1506-0035.\11\
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    \11\ The AML program regulatory requirements are currently 
covered under the following OMB control numbers: 1506-0020 (31 CFR 
1022.210--AML programs for MSBs, 31 CFR 1024.210--AML programs for 
mutual funds, and 31 CFR 1028.210--AML programs for operators of 
credit card systems); 1506-0030 (31 CFR 1027.210--AML programs for 
dealers in precious metals, precious stones, or jewels); and 1506-
0035 (31 CFR 1020.210(b)--AML program requirements for banks lacking 
a Federal functional regulator, 31 CFR 1025.210--AML programs for 
insurance companies, and 31 CFR 1029.210--AML programs for loan and 
finance companies). There is no OMB control number associated with 
31 CFR 1030.210--AML programs for housing government sponsored 
enterprises (HGSEs), because the PRA does not apply to the 
collection of information by one federal agency (FinCEN) from 
another federal entity (the HGSEs).
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    Form Number: Not applicable.
    Abstract: FinCEN is issuing this notice to renew the OMB control 
numbers for the AML program regulatory requirements for certain 
financial institutions.
    Affected Public: Businesses or other for-profit institutions, and 
non-profit institutions.
    Type of Review: Renewal without change of currently approved 
information collections.
    Frequency: As required.
    Estimated Number of Respondents: 283,043 financial 
institutions.\12\
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    \12\ Table 1 below breaks down the types of financial 
institutions covered by this notice.
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    Estimated Recordkeeping Burden: In Part 1 of this notice, FinCEN 
describes the breakdown of the estimated number of financial 
institution, by type. In Part 2, FinCEN proposes for review and comment 
a renewal of the calculation of the annual PRA burden that includes a 
scope and methodology similar to that used in the 2020 notice to renew 
the OMB control numbers for the AML programs of certain financial 
institutions.\13\
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    \13\ See FinCEN, Agency Information Collection Activities; 
Proposed Renewal; Comment Request; Renewal Without Change of Anti-
Money Laundering Programs for Certain Financial Institutions, 85 FR 
49418 (Aug. 13, 2020).
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Part 1. Breakdown of Financial Institutions Covered by This Notice

    The breakdown of financial institutions, by type, covered by this 
notice, is reflected in Table 1 below:

        Table 1--Number of Covered Financial Institutions by Type
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                                                             Number of
              Type of financial institution                  financial
                                                           institutions
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Banks lacking a Federal functional regulator............         \a\ 600
Principal MSBs \b\......................................      \c\ 27,500
Providers or sellers of prepaid access..................           2,605
Other types of principal MSBs...........................          24,895
Agent MSBs..............................................     \d\ 229,161
Mutual funds............................................       \e\ 1,400
Insurance companies.....................................       \f\ 4,678
Dealers in precious metals, stones, and jewels..........       \g\ 6,700
Operators of credit card systems........................           \h\ 4
Loan or finance companies...............................      \i\ 13,000
                                                         ---------------
    Total...............................................         283,043
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\a\ This estimate of active entities as of year-end 2023 incorporates
  data from both public and non-public sources, including: Call Reports;
  various state banking/financial institution regulators' websites and
  directories; the Federal Reserve Board of Governors' Master Account
  and Services database (https://www.federalreserve.gov/paymentsystems/master-account-and-services-database-existing-access.htm); and data
  from the OCIF (Oficina del Comisionado de Instituciones Financieras);
  and was derived in consultation with staff from the Internal Revenue
  Service's Small Business/Self-Employed Division.
\b\ The definition of MSB covers both principal MSBs and agents. Under
  31 CFR 1022.210(d)(1)(iii), a person that is an MSB solely because it
  is an agent for another MSB and the MSB for which it serves as an
  agent (the principal MSB) may by agreement allocate between themselves
  responsibility for developing policies, procedures, and internal
  controls. However, neither the agent nor the principal MSB can avoid
  liability for failing to establish or maintain an effective AML
  program by pointing to a contract assigning the responsibility to the
  other party.
\c\ This value represents the number of uniquely identifiable principal
  MSBs with indicia of ongoing operations as of year-end 2023. The
  estimate is derived from FinCEN's publicly available MSB data
  available at https://www.fincen.gov/msb-registrant-search, accessed
  February 28, 2024.
\d\ In the absence of public comments in prior renewals of the OMB
  control number applicable to this regulatory requirement, FinCEN
  considers it reasonable to continue to rely upon its previous estimate
  that the number of agent MSBs remains approximately 229,161. This
  value was previously published in the 2020 notice to renew OMB control
  numbers 1506-0020, 1506-0030, and 1506-0035 (85 CFR 49420 (Aug. 13,
  2020)).
\e\ This estimate of the number of active mutual funds as of year-end
  2023 is based on Form N-CEN filings received by the U.S. Securities
  and Exchange Commission through January 20, 2023, as represented by
  data downloaded from SEC Open Data (https://www.sec.gov/dera/data/form-ncen-data-sets), accessed February 29, 2024.
\f\ This estimate is based on data on entities with NAICS code 423940
  (Jewelry, Watch, Precious Stone, and Precious Metal Merchant
  Wholesalers) published at year end 2023 in the 2021 Survey of U.S.
  Businesses (https://www.census.gov/data/datasets/2021/econ/susb/2021-susb.html), accessed March 1, 2024.
\g\ This estimate includes 667 L&H insurers, 2,656 P&C insurers, and
  1,355 health insurers licensed in the United States during 2022. From
  US Treasury ``Annual Report on the Insurance Industry,'' published
  September 2023 (https://home.treasury.gov/system/files/311/FIO%20Annual%20Report%202023%209292023.pdf), accessed February 28,
  2024.
\h\ This value is based on FinCEN review of active, U.S. based market
  participants at year end 2023.

[[Page 29430]]

 
\i\ This estimate is based on data on entities with NAICS codes 522292
  (Real Estate Credit) and 522310 (Mortgage and Non-Mortgage Loan
  Brokers) published at year end 2023 in the 2021 Survey of U.S.
  Businesses (https://www.census.gov/data/datasets/2021/econ/susb/2021-susb.html), accessed March 1, 2024.

    As noted above, 31 U.S.C. 5318(h) mandates that financial 
institutions establish AML/CFT programs to guard against money 
laundering and the financing of terrorism. Such programs must include, 
at a minimum: (a) the development of internal policies, procedures, and 
controls, (b) the designation of a compliance officer, (c) an ongoing 
employee training program, and (d) an independent audit function to 
test programs.
    The AML program regulations for banks lacking a Federal functional 
regulator, MSBs, mutual funds, insurance companies, dealers in precious 
metals, precious stones, or jewels, operators of credit card systems, 
and loan or finance companies require these financial institutions to 
implement AML programs that are reasonably designed. The AML program 
must be in writing and must be commensurate with the financial 
institution's risk profile.
    The AML program regulations for banks lacking a Federal functional 
regulator and mutual funds, for which the corresponding OMB control 
numbers are being renewed as part of this notice, include customer due 
diligence (CDD) requirements. In connection with a variety of 
initiatives FinCEN is undertaking to implement the AML Act, FinCEN 
intends to conduct, in the future, additional assessments of the PRA 
burden associated with BSA requirements, including CDD requirements for 
banks lacking a Federal functional regulator and mutual funds.

Part 2. Annual PRA Burden and Cost

    The scope of the annual PRA burden and cost estimates of the AML 
program in this renewal is limited to: maintaining and updating the AML 
program documentation (Action A); storing the written AML program 
(Action B); producing a copy of the written AML program if requested by 
regulatory examiners or law enforcement (Action C); for banks lacking a 
Federal functional regulator and mutual funds, securing approval of the 
AML program by the board of directors or trustees (Action D); \14\ and 
for providers or sellers of prepaid access, obtaining, verifying, and 
maintaining cardholder identifying information (Action E).\15\
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    \14\ The AML program regulations for banks lacking a Federal 
functional regulator and mutual funds are the only AML program 
regulations being renewed in this notice with a regulatory 
requirement to secure board of directors' or trustees' approval of 
the AML program. FinCEN recognizes, however, that the other 
financial institutions covered by this notice may also get their 
board of directors or trustees to approve their AML programs as a 
best practice.
    \15\ The MSB AML program regulations have a unique requirement. 
Specifically, 31 CFR 1022.210(d)(1)(iv) provides that an MSB that is 
a provider or seller of prepaid access must establish procedures to 
verify the identity of a person who obtains prepaid access under a 
prepaid program and obtain identifying information concerning such a 
person, including name, date of birth, address, and identification 
number. Sellers of prepaid access must also establish procedures to 
verify the identity of a person who obtains prepaid access to funds 
that exceed $10,000 during any one day and obtain identifying 
information concerning such a person, including name, date of birth, 
address, and identification number.
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    For purposes of the estimate of the AML program annual PRA burden, 
FinCEN generally assumes:
    (a) Agent MSBs agree to abide by, and in practice do abide by, the 
policies, procedures, and internal controls established by their 
principal MSBs.
    (b) Principal MSBs establish minimum training and independent 
review standards for their agents.\16\
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    \16\ According to FIN-2016-G001, ``Guidance on Existing AML 
Program Rule Compliance Obligations for MSB Principals with Respect 
to Agent Monitoring,'' (Mar. 11, 2016), MSB principals are required 
to develop and implement risk-based policies, procedures, and 
internal controls that ensure adequate ongoing monitoring of agent 
activity, as part of the principal's implementation of its AML 
program. Imposing a minimum level of general training and a minimum 
frequency of independent review allows principal MSBs to standardize 
in part these agent monitoring responsibilities. This document is 
available at https://www.fincen.gov/resources/statutes-regulations/guidance/guidance-existing-aml-program-rule-compliance-obligations.
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    (c) Required written AML programs are stored as electronic files. 
The estimated annual burden (five minutes per financial institution) 
represents the administrative burden involved in processing the storage 
of the written program.
    (d) Producing the written AML program to regulatory or law 
enforcement agencies, upon their request, is performed electronically. 
FinCEN estimates the annual burden of producing the written program at 
five minutes per financial institution. The estimated annual burden 
represents the administrative burden involved in producing the program 
upon request once per year.
    (e) The estimated number of prepaid access arrangements established 
annually remains at approximately 2.6 million. The collection and 
storage of cardholder identification information is automated.\17\
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    \17\ In the absence of public comments in all prior renewals of 
the OMB control number applicable to this regulatory requirement, 
FinCEN considers it reasonable to continue to rely upon its previous 
estimate that the number of prepaid arrangements established 
annually is 2.6 million.
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    The estimated burden associated with each portion of the annual PRA 
estimate is as follows:

                                         Table 2--Burden Associated With Each Action of the Annual PRA Estimate
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                                                                                                                            Number of
                Action                      Instances per year         Time per instance          Type of financial         financial      Total hourly
                                                                                                     institution        institutions \a\      burden
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A. Maintaining and updating the         1 per financial            1 hour...................  All except agent MSBs...            53,882          53,882
 written AML program.                    institution.
B. Storing the written AML program....  1 per financial            5 minutes................  All.....................           283,043          23,587
                                         institution.
C. Producing the AML program upon       1 per financial            5 minutes................  All.....................           283,043          23,587
 request.                                institution.
D. Board of directors/trustees          1 per financial            1 hour...................  Banks lacking a Federal              2,000           2,000
 approval of the AML program.            institution.                                          functional regulator
                                                                                               and mutual funds.
E. Obtaining, verifying, and storing    2.6 million (once per      2 minutes................  Providers or sellers of              2,605          86,667
 cardholder identifying information.     card).                                                prepaid access.
                                                                                                                                         ---------------

[[Page 29431]]

 
    Total Hourly Burden...............  .........................  .........................  ........................  ................         189,723
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\a\ As set out in Table 1 above.

    FinCEN's estimate for the total hourly annual PRA burden is 189,723 
hours.
    FinCEN identified four roles and corresponding staff positions 
involved in maintaining an AML program to estimate the hourly costs 
associated with the burden hour estimates calculated in this part. 
Those are: (i) general approval (board of directors/trustees approval 
of the AML program); (ii) general supervision (providing process 
management); (iii) direct supervision (reviewing operational-level work 
and cross-checking all or a sample of the work product against their 
supporting documentation); and (iv) clerical work (engaging in research 
and administrative review and filing and producing the AML program on 
request).
    FinCEN calculated the fully loaded hourly wage for each of these 
four roles by taking the median wage as estimated by the U.S. Bureau of 
Labor Statistics (BLS), and computing an additional benefits cost as 
follows:\18\
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    \18\ BLS, Occupational Employment Statistics-National (May 
2022), available at https://www.bls.gov/oes/tables.htm. The most 
recent data from the BLS corresponds to May 2022. The ratio between 
benefits and wages for private industry workers is $12.77 (hourly 
benefits)/$30.33 (hourly wages) = 0.42, as of December 2023. The 
benefit factor is 1 plus the benefit/wages ratio, or 1.42. See BLS, 
Employee Costs for Employee Compensation (Dec. 2023), available at 
ECEC Home: U.S. Bureau of Labor Statistics (bls.gov).

           Table 3--Total Hourly Remuneration (Fully Loaded Hourly Wage) per Role and BLS Job Position
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                                                                   Median hourly                   Fully loaded
             Role                  BLS-code         BLS-name           wage       Benefit factor    hourly wage
----------------------------------------------------------------------------------------------------------------
Board of directors/trustees...         11-1010  Chief Executive           $91.12            1.42     \b\ $129.39
                                                 \a\.
General supervision...........         11-3031  Financial                  67.21            1.42           95.44
                                                 Manager.
Direct supervision............         13-1041  Compliance                 34.47            1.42           48.95
                                                 Officer.
Clerical work (research,               43-3099  Financial Clerk.           22.66            1.42           32.18
 review, and filing and
 producing the program upon
 request).
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\a\ FinCEN recognizes that a board of directors/trustees would be on a different pay scale than a chief
  executive officer, however, chief executive officer is the highest paid category in the BLS Occupational
  Employment Statistics. For that reason, FinCEN is conservatively estimating the highest wage rate available
  for its cost analysis.
\b\ $129.39 rounded to $129.00.

    FinCEN estimates that, in general and on average,\19\ each role 
would spend different amounts of time on each portion of the annual PRA 
burden, as follows:
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    \19\ By ``in general,'' FinCEN is speaking without regard to 
outliers (e.g., financial institutions with AML programs with 
complexities that are uncommonly higher or lower than those of the 
population at large). By ``on average,'' FinCEN means the mean of 
the distribution of each subset of the population.
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    For Action A set out in Table 2 above, annually maintaining and 
updating the AML program documentation, the cost of each hour of burden 
is estimated to be $49.00, as shown in Table 4 below. Action A applies 
to all financial institutions covered by this notice, except agent 
MSBs.

                               Table 4--Weighted Average Hourly Cost of Maintaining and Updating AML Program Documentation
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                           General supervision                                  Direct supervision          Clerical work (case review)      Weighted
----------------------------------------------------------------------------------------------------------------------------------------- average hourly
                          %time                             Hourly cost        %time        Hourly cost        %time        Hourly cost        cost
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10......................................................           $9.54              60          $29.37              30           $9.65      \a\ $49.00
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\a\ $48.57 rounded to $49.00.

    For Actions B, C, and E, set out in Table 2 above, the cost of each 
hour of burden is estimated to be $34.00, as shown in Table 5 below:
     Action B--storing the AML program. (Applies to all 
financial institutions covered by this notice).
     Action C--producing of the AML program upon request. 
(Applies to all financial institutions covered by this notice).
     Action E--obtaining, verifying, and storing prepaid access 
customer identifying information. (Only applies to providers and 
sellers of prepaid access).

[[Page 29432]]



  Table 5--Weighted Average Hourly Cost of Storing and Producing AML Program Documentation Upon Request, and Obtaining, Verifying, and Storing Prepaid
                                                         Access Customer Identifying Information
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                           General supervision                                  Direct supervision         Clerical work (recordkeeping)     Weighted
----------------------------------------------------------------------------------------------------------------------------------------- average hourly
                          %time                             Hourly cost        %time        Hourly cost        %time        Hourly cost        cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.......................................................           $0.95               9           $4.41              90          $28.96      \a\ $34.00
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\a\ $34.32 rounded to $34.00.

    For Action D set out in Table 2 above, approval of the AML program 
by the board of directors or trustees of a bank lacking a Federal 
functional regulator or mutual fund, the cost of each hour of burden 
would be $129.00, as shown in Table 3 above. Action D only applies to 
banks lacking a Federal functional regulator and mutual funds.\20\
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    \20\ See supra note 14.
---------------------------------------------------------------------------

    The total cost of the annual PRA burden would be $7,448,812, as 
reflected in Table 6 below:

                                    Table 6--Total Cost of Annual PRA Burden
----------------------------------------------------------------------------------------------------------------
                                         Total burden                  Hourly cost
                                           in hours    ------------------------------------------
                Action                 ----------------                                             Total cost
                                           (Table 2)          ($)                Source
----------------------------------------------------------------------------------------------------------------
A. Maintaining and updating the                 53,882              49  Table 4.................       2,640,218
 written AML program.
B. Storing the written AML program....          23,587              34  Table 5.................         801,958
C. Producing the written AML program            23,587              34  Table 5.................         801,958
 upon request.
D. Board of directors/trustees                   2,000             129  Table 3.................         258,000
 approval of the AML program.
E. Obtaining, verifying, and storing            86,667              34  Table 5.................       2,946,678
 prepaid access customer identifying
 information.
                                                                                                 ---------------
      Total Cost......................  ..............  ..............  ........................       7,448,812
----------------------------------------------------------------------------------------------------------------

    Estimated Recordkeeping Burden: Due to the different scope and 
criteria used for the estimate, the average estimated annual PRA 
burden, measured in hours per respondent, is: (Action A) one hour per 
principal financial institution, for maintaining and updating the AML 
program; (Action B) five minutes per financial institution, for storing 
the written AML program; (Action C) five minutes per financial 
institution, for producing a copy of the AML program if requested by 
regulatory examiners or law enforcement; (Action D) one hour per bank 
lacking a Federal functional regulator or mutual fund, for securing 
approval of the AML program by the board of directors or trustees; and 
(Action E) two minutes per provider or seller of prepaid access, for 
obtaining, verifying, and maintaining customer identifying information.
    Estimated Number of Respondents: 283,043, as described in Table 1.
    Estimated Total Annual Responses: Due to unique AML program 
requirements for banks lacking a Federal functional regulator, mutual 
funds, and MSBs, each of the five actions listed below impact a 
different estimated number of financial institutions as follows:
    (1) 53,882 (all financial institutions except agent MSBs) for the 
maintaining the written AML program (Action A);
    (2) 283,043 (total number of financial institutions) for storing 
the written AML program (Action B);
    (3) 283,043 (total number of financial institutions) for producing 
a copy of the written AML program if requested by regulatory examiners 
or law enforcement (Action C);
    (4) 2,000 (number of banks lacking a Federal functional regulator 
and mutual funds) for securing approval of an AML program by the board 
of directors or trustees (Action D); and
    (5) 2,600,000 (number of new prepaid access arrangements added per 
year) for providers and sellers of prepaid access for obtaining, 
verifying, and maintaining customer identifying information (Action E).
    Estimated Total Annual Recordkeeping Burden: The estimated total 
annual PRA burden is 189,723 hours, as described in Table 2.
    Estimated Total Annual Recordkeeping Cost: The cost of the 
estimated total annual PRA is $7,448,812, as described in Table 6.
    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. Records required to be retained under the BSA must 
be retained for five years.
    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.

Andrea M. Gacki,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2024-08529 Filed 4-18-24; 11:15 am]
BILLING CODE 4810-02-P