[Federal Register Volume 89, Number 156 (Tuesday, August 13, 2024)]
[Notices]
[Pages 65971-65977]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-18035]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Agency Information Collection Activities; Proposed Renewal; 
Comment Request; Renewal Without Change of Regulations Requiring 
Records To Be Made and Retained by Financial Institutions, Banks, and 
Providers and Sellers of Prepaid Access

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 proposed renewal, 
without change, of existing information collection requirements found 
in Bank Secrecy Act regulations that require certain financial 
institutions to make and retain records associated with certain types 
of transactions, including but not limited to funds transfers, 
transmittals of funds, and prepaid access transactions. This request 
for comments is made pursuant to the Paperwork Reduction Act of 1995.

DATES: Written comments are welcome and must be received on or before 
October 15, 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-2024-0012 and Office of Management and Budget (OMB) control 
numbers 1506-0058 and 1506-0059.
     Mail: Policy Division, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2024-0012 and OMB control numbers 1506-0058 and 1506-0059.
    Please submit comments by one method only. Comments will be 
reviewed consistent with the Paperwork Reduction Act of 1995 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 Anti-Money Laundering Act of 2020 (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,

[[Page 65972]]

with implementing regulations at 31 CFR chapter X.
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    \1\ USA PATRIOT Act, Public Law 107-56, 115 Stat. 272 (2001).
    \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, Public Law 116-283, 134 Stat. 3388.
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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\ See 31 U.S.C. 5311.
    \4\ Treasury Order 180-01 (Jan. 14, 2020); see also 31 U.S.C. 
310(b)(2)(I) (providing that FinCEN Director ``[a]dminister the 
requirements of subchapter II of chapter 53 of this title, chapter 2 
of title I of Public Law 91-508, and section 21 of the Federal 
Deposit Insurance Act, to the extent delegated such authority by the 
Secretary.'').
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    The Annunzio-Wylie Anti-Money Laundering Act (``Annunzio Wylie'') 
amended the BSA by authorizing the Secretary and the Board of Governors 
of the Federal Reserve System (the ``Board'') to jointly issue 
regulations requiring insured depository institutions to maintain 
records of domestic funds transfers.\5\ The Secretary, but not the 
Board, is authorized to promulgate recordkeeping requirements for 
domestic wire transfers by nonbank financial institutions.\6\ In 
addition, Annunzio-Wylie authorized the Secretary and the Board, after 
consultation with state banking supervisors, to jointly issue 
regulations requiring insured depository institutions and certain 
nonbank financial institutions to maintain records of international 
funds transfers and transmittals of funds.\7\
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    \5\ Public Law 103-325, sec. 1515 (1992); 12 U.S.C. 1829b(b)(2).
    \6\ 12 U.S.C. 1953.
    \7\ 12 U.S.C. 1829b(b)(3). The term ``funds transfer,'' as 
defined in FinCEN regulations, applies exclusively to transactions 
that are processed by banks. See 31 CFR 1010.100(w). A ``transmittal 
of funds'' is broader, as it includes not only funds transfers, but 
transactions processed by nonbank financial institutions. See 31 CFR 
1010.100(ddd).
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A. 31 CFR 1010.410(a) Through (c)--Records To Be Made and Retained by 
Financial Institutions

    Pursuant to 31 CFR 1010.410(a) through (c),\8\ financial 
institutions \9\ are required to retain either the original or a copy 
of the following:
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    \8\ Pursuant to 31 CFR 1010.410(d), a financial institution must 
retain a record of such information for such period of time as the 
Secretary may require in an order issued under 31 CFR 1010.370(a), 
not to exceed five years. The recordkeeping burden for 31 CFR 
1010.410(d) is accounted for under OMB control number 1506-0056, 
which applies to 31 CFR 1010.370(a).
    \9\ Unlike 31 CFR 1010.410(e), which applies only to financial 
institutions other than banks, the requirements of 31 CFR 
1010.410(a) through (c) apply to all ``financial institutions'' as 
defined in 31 CFR 1010.100(t).
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     A record of each extension of credit in excess of $10,000, 
except if the extension of credit is secured by an interest in real 
property. The record must include the name and address of the person to 
whom the extension of credit is made, and the amount, purpose, and date 
of the extension of credit.\10\
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    \10\ 31 CFR 1010.410(a).
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     A record of each request received or given regarding any 
transaction resulting in (or intended to result in but later canceled 
if such a record is normally made) the transfer of currency or other 
monetary instruments, funds, checks, investment securities, or credit 
of more than $10,000 to or from any person, account, or place outside 
the United States.\11\
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    \11\ 31 CFR 1010.410(b).
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     A record of each request given to another financial 
institution or other person located in or outside of the United States, 
regarding a transaction intended to result in a transfer of funds, or 
of currency, other monetary instruments, checks, investment securities, 
or credit of more than $10,000 to a person, account, or place outside 
the United States.\12\
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    \12\ 31 CFR 1010.410(c).
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B. 31 CFR 1010.410(e) and (f) and 31 CFR 1020.410(a)--Information 
Required To Be Collected, Retained, and Transmitted Under the 
Recordkeeping and Travel Rules

    On January 3, 1995, Treasury and the Board jointly issued a 
recordkeeping rule (the ``Recordkeeping Rule'') that requires banks and 
nonbank financial institutions to collect and retain information 
related to funds transfers and transmittals of funds in amounts of 
$3,000 or more.\13\ The Recordkeeping Rule is intended to help law 
enforcement and regulatory authorities to detect, investigate, and 
prosecute money laundering, and other financial crimes by preserving an 
information trail about persons sending and receiving funds through the 
funds transfer system.
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    \13\ 60 FR 220 (Jan. 3, 1995).
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    At the same time, FinCEN issued a separate rule (the ``Travel 
Rule'') that requires banks and nonbank financial institutions to 
transmit information on certain funds transfers and transmittals of 
funds to other banks or nonbank financial institutions participating in 
the transfer or transmittal.\14\ The Recordkeeping Rule and the Travel 
Rule complement each other. Generally, as noted below, the 
Recordkeeping Rule requires financial institutions to collect and 
retain the information that, under the Travel Rule, must be included 
with transmittal orders, although the Recordkeeping Rule also has other 
applications in addition to ensuring that information is available to 
include with funds transfers. FinCEN issued the Travel Rule pursuant to 
statutory authority that permits the Secretary to require domestic 
financial institutions and nonfinancial trades or businesses to 
maintain appropriate procedures to ensure compliance with the BSA or to 
guard against money laundering.\15\
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    \14\ 60 FR 234 (Jan. 3, 1995).
    \15\ Id. The authority is codified at 31 U.S.C. 5318(a)(2).
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    Requirements in the Recordkeeping Rule related to funds transfers 
are codified at 31 CFR 1020.410(a). Requirements in the Recordkeeping 
Rule related to transmittals of funds processed by nonbank financial 
institutions are codified at 31 CFR 1010.410(e). The Travel Rule 
consists of a single provision, codified at 31 CFR 1010.410(f), that 
applies to all transmittals of funds, including those processed by 
banks.\16\ This notice proposes to renew the regulations that implement 
the Recordkeeping Rule and the Travel Rule, along with other regulatory 
requirements in 31 CFR 1010.410, 1020.410, and 1022.420.\17\
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    \16\ See supra note 7.
    \17\ OMB control number 1506-0058 applies to 31 CFR 1010.410 and 
31 CFR 1022.420. OMB control number 1506-0059 applies to 31 CFR 
1020.410. On October 27, 2020, the Board and FinCEN (collectively, 
the ``Agencies'') issued a joint notice of proposed rulemaking to 
modify the thresholds in the Recordkeeping Rule and the Travel Rule. 
See 85 FR 68005 (October 27, 2020). This notice and request for 
comments under the PRA only pertains to the current regulatory 
requirements of the Recordkeeping Rule and the Travel Rule.
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    The Recordkeeping Rule and Travel Rule collectively require banks 
and nonbank financial institutions to collect, retain, and transmit 
information on funds transfers and transmittals of funds in amounts of 
$3,000 or more.

[[Page 65973]]

    Under the Recordkeeping Rule, the originator's bank or 
transmittor's financial institution must collect and retain the 
following information: (1) name and address of the originator or 
transmittor; (2) the amount of the payment or transmittal order; (3) 
the execution date of the payment or transmittal order; (4) any payment 
instructions received from the originator or transmittor with the 
payment or transmittal order; and (5) the identity of the beneficiary's 
bank or recipient's financial institution. In addition, the 
originator's bank or transmittor's financial institution must retain 
the following information if it receives that information from the 
originator or transmittor: (1) name and address of the beneficiary or 
recipient; (2) account number of the beneficiary or recipient; and (3) 
any other specific identifier of the beneficiary or recipient. The 
originator's bank or transmittor's financial institution is required to 
verify the identity of the person placing a payment or transmittal 
order--and collect and retain various items of information identifying 
the person--if the order is made in person and the person placing the 
order is not an established customer.\18\ Similarly, should the 
beneficiary's bank or recipient's financial institution deliver the 
proceeds to the beneficiary or recipient in person, the bank or nonbank 
financial institution must verify the identity of the beneficiary or 
recipient--and collect and retain various items of information 
identifying the beneficiary or recipient--if the beneficiary or 
recipient is not an established customer. Finally, an intermediary bank 
or financial institution--and the beneficiary's bank or recipient's 
financial institution--must retain originals or copies of payment or 
transmittal orders.
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    \18\ ``Established customers'' include persons with accounts at 
the financial institution and certain persons with identifying 
information on file at the financial institution. See 31 CFR 
1010.100(p).
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    Under the Travel Rule, the originator's bank or transmittor's 
financial institution is required to include information, including all 
information required under the Recordkeeping Rule, in a payment or 
transmittal order sent by the bank or nonbank financial institution to 
another bank or nonbank financial institution in the payment chain. An 
intermediary bank or financial institution is also required to transmit 
this information to other banks or nonbank financial institutions in 
the payment chain, to the extent the information is received by the 
intermediary bank or financial institution.

C. 31 CFR 1020.410(c)--Additional Records To Be Made and Retained by 
Banks

    Pursuant to 31 CFR 1020.410(c), banks must retain either the 
original or a copy of the following: \19\
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    \19\ Under 31 CFR 1020.410(b), a bank is required to secure and 
maintain a record of the taxpayer identification numbers of persons 
who have purchased or redeemed certificates of deposit or opened 
deposit or share accounts during the period from June 30, 1972 to 
October 1, 2003. Insofar as deposit and share accounts are 
concerned, customer identification program (CIP) requirements have 
effectively superseded that provision. See 31 CFR 1020.220. CIP 
requirements are not considered in connection with this OMB control 
number renewal.
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     Each document granting signature authority over each 
deposit or share account, including any notations, if such are normally 
made, of specific identifying information to verify the identity of the 
signer.\20\
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    \20\ 31 CFR 1020.410(c)(1).
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     A record on each deposit or share account, showing each 
transaction in, or with respect to, that account.\21\
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    \21\ 31 CFR 1020.410(c)(2).
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     Each check, clean draft, or money order drawn on the bank 
or issued and payable by it, with certain exceptions.\22\
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    \22\ 31 CFR 1020.410(c)(3). See 31 CFR 1020.410(c)(3) for a list 
of exceptions to the recordkeeping requirements.
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     A record of each item in excess of $100 comprising a debit 
to a customer's deposit or share account, with certain exceptions.\23\
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    \23\ 31 CFR 1020.410(c)(4).
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     A record of each item, including checks, drafts, or 
transfers of credit of more than $10,000 remitted or transferred to a 
person, account, or place outside the United States.\24\
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    \24\ 31 CFR 1020.410(c)(5).
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     A record of each remittance or transfer of funds, or of 
currency, other monetary instruments, checks, investment securities, or 
credit, of more than $10,000 to a person, account, or place outside the 
United States.\25\
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    \25\ 31 CFR 1020.410(c)(6).
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     Each check or draft in excess of $10,000 drawn on or 
issued by a foreign bank which the domestic bank has paid or presented 
to a nonbank drawee for payment.\26\
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    \26\ 31 CFR 1020.410(c)(7).
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     Each item, including checks, drafts or transfers of credit 
of more than $10,000 received directly and not through a domestic 
financial institution, by letter, cable or any other means, from a 
bank, broker or dealer in foreign exchange outside the United 
States.\27\
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    \27\ 31 CFR 1020.410(c)(8).
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     A record of each receipt of currency, other monetary 
instruments, investment securities or checks, and of each transfer of 
funds or credit, of more than $10,000 received on any one occasion 
directly and not through a domestic financial institution, from a bank, 
broker or dealer in foreign exchange outside the United States.\28\
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    \28\ 31 CFR 1020.410(c)(9).
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     Records prepared or received by a bank in the ordinary 
course of business, which would be needed to reconstruct a transaction 
account and to trace a check in excess of $100 deposited in such 
account through its domestic processing system or to supply a 
description of a deposited check in excess of $100. This requirement is 
only applicable to demand deposits.\29\
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    \29\ 31 CFR 1020.410(c)(10).
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     A record containing the name, address, and taxpayer 
identification number (TIN), if available, of the purchaser of each 
certificate of deposit, as well as a description of the instrument, 
notation of the method of payment, and the date of the 
transactions.\30\
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    \30\ 31 CFR 1020.410(c)(11).
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     A record containing the name, address, and TIN, if 
available, of any person presenting a certificate of deposit for 
payment, as well as a description of the instrument and the date of the 
transaction.\31\
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    \31\ 31 CFR 1020.410(c)(12).
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     Each deposit slip or credit ticket reflecting a 
transaction in excess of $100 or the equivalent record for direct 
deposit or other wire transfer deposit transactions. The record must 
include the amount of any currency involved.\32\
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    \32\ 31 CFR 1020.410(c)(13).
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D. 31 CFR 1022.420--Additional Records To Be Maintained by Providers 
and Sellers of Prepaid Access

    Providers and sellers of prepaid access are defined as money 
services businesses (MSBs) for purposes of FinCEN regulations.\33\ BSA 
regulations specific to MSBs are found at 31 CFR part 1022. Providers 
and sellers of prepaid access must maintain access to transactional 
records generated in the ordinary course of business that would be 
needed to reconstruct prepaid access activation, loads, reloads, 
purchases, withdrawals, transfers, or other prepaid-related 
transactions.
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    \33\ See 31 CFR 1010.100(ff)(4) (providers of prepaid access); 
31 CFR 1010.100(ff)(7) (sellers of prepaid access).
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II. Paperwork Reduction Act of 1995 (PRA) \34\
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    \34\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
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    Title: Records to be made and retained by financial institutions 
(31 CFR

[[Page 65974]]

1010.410), records to be made and retained by banks (31 CFR 1020.410), 
and additional records to be maintained by providers and sellers of 
prepaid access (31 CFR 1022.420).\35\
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    \35\ All the records required to be made and retained under 31 
CFR 1010.410, 1020.410, and 1022.420 are required to be retained for 
five years pursuant to 31 CFR 1010.430(d).
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    OMB Control Number: 1506-0058 and 1506-0059.\36\
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    \36\ OMB control number 1506-0058 applies to 31 CFR 1010.410 and 
31 CFR 1022.420. OMB control number 1506-0059 applies to 31 CFR 
1020.410.
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    Form Number: Not applicable.
    Abstract: FinCEN is issuing this notice to renew the OMB control 
numbers for the regulations that require certain financial institutions 
to make and retain records associated with certain types of 
transactions, including funds transfers, transmittals of funds, and 
prepaid access transactions, among other types of transactions.
    Affected Public: Businesses or other for-profit institutions, and 
non-profit institutions.
    Type of Review: Renewal without change of a currently approved 
information collection.
    Frequency: As required.
    Estimated Number of Respondents: 273,832 financial 
institutions.\37\
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    \37\ Table 1 below describes the distribution of the types of 
financial institutions covered by this notice. This number is 
significantly larger than FinCEN's estimate of the number of 
respondents in earlier PRA discussions of this subject. It reflects 
FinCEN's considered opinion that agent MSBs, as well as principal 
MSBs, should be considered directly subject to the information 
collections that are the subject of this notice. This change of 
opinion should not be construed as a suggestion by FinCEN that the 
information collections themselves have changed significantly. 
Rather, it reflects FinCEN's continuous monitoring of its economic 
analysis practices in an effort to improve overall accuracy and 
consistency across all of its regulatory products.
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    Estimated Recordkeeping Burden: In Part 1 of this analysis, FinCEN 
describes the distribution of the estimated number of financial 
institutions, by type, affected by each of the regulatory requirements. 
In Part 2, FinCEN describes the primary characteristics of each of the 
regulatory requirements. In addition, 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 these information collections.\38\
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    \38\ See FinCEN, Agency Information Collection Activities; 
Proposed Renewal; Comment Request; Renewal Without Change of 
Regulations Requiring Records to be Made and Retained by Financial 
Institutions, Banks, and Providers and Sellers of Prepaid Access, 85 
FR 84105 (Dec. 23, 2020).
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Part 1. Distribution of the Financial Institutions Covered by This 
Notice

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

 Table 1--Distribution of Financial Institutions Covered by This Notice,
                    by Type of Financial Institution
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Type of financial institution                                  Number of
                                                               financial
                                                              institutio
                                                                      ns
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Banks with a Federal functional regulator (FFR).............   \a\ 9,462
Banks lacking an FFR........................................     \b\ 600
Brokers or dealers in securities............................   \c\ 3,478
Principal MSBs, including:
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    MSBs that conduct money transmission...........   16,897  \d\ 27,500
    MSBs that conduct money transmission but do not   14,588
     provide or sell prepaid access................
    MSBs that conduct money transmission and           2,309
     provide or sell prepaid access................
    MSBs that do not conduct money transmission and      355
     are providers or sellers of prepaid access....
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Agent MSBs..................................................         \e\
                                                                 229,161
Telegraph companies.........................................       \f\ 0
Casinos and card rooms......................................   \g\ 1,277
Futures commission merchants and introducing brokers in          \h\ 954
 commodities................................................
Mutual funds................................................   \i\ 1,400
                                                    --------------------
    Total...................................................     273,832
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\a\ This estimate of the total number of banks with an FFR, including
  credit unions, is based on end of year 2023 data as provided by each
  of the FFRs, respectively. The FFRs are the Board of Governors of the
  Federal Reserve System, the Federal Deposit Insurance Corporation, the
  Office of the Comptroller of the Currency, and the National Credit
  Union Administration.
\b\ This estimate of active entries 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://federalreserve.gov/paymentsystems/master-account-andservices-database-exisiting-access.htm); and data
  from the Commonwealth of Puerto Rico Oficina del Comisionado de
  Instituciones Financieras (OCIF); and was derived in consultation with
  staff from the Internal Revenue Service's Small Business/Self-Employed
  Division.
\c\ Estimate based on December 2023 file downloaded ``from Data--Company
  Information About Active Broker-Dealers,'' (accessed Feb. 28, 2024),
  available at https://www.sec.gov/help/foiadocsbdfoia.
\d\ The definition of MSB (31 CFR 1010.100(ff)) covers both principal
  MSBs and agents. This value represents the number of uniquely
  identifiable principal MSBs with indicia of ongoing operations as of
  year-end 2023 rounded to the nearest hundred. The estimate is derived
  from FinCEN's publicly available MSB data (accessed Feb. 28, 2024),
  available at https://www.fincen.gov/msb-registrant-search. Estimates
  of subcategories are based on registrants' self-reported activities.
\e\ 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 FR 49420 (Aug. 13,
  2020)).
\f\ Although telegraph companies are defined as financial institutions
  under 31 CFR 1010.100(t), FinCEN is not aware of any telegraph
  companies that would be affected by the Recordkeeping or Travel Rule.
\g\ Estimate based on the American Gaming Association (AGA) ``State of
  Play,'' reporting 486 commercial casinos and 525 tribal casinos as of
  December 31, 2023 (accessed Feb. 28, 2024), available at https://www.americangaming.org/state-of-play/. As of December 31, 2022, there
  were also 266 card rooms as published in the AGA's ``State of the
  States'' annual report, p. 16 (accessed Feb. 28, 2024), available at
  https://www.americangaming.org/wp-content/uploads/2023/05/AGA-State-of-the-States-2023.pdf.

[[Page 65975]]

 
\h\ The number of futures commissions merchants as of December 31, 2023
  was obtained from data available at CFTC Financial Data for FCMs
  (accessed Mar. 1, 2024), available at https://www.cftc.gov/MarketReports/financialfcmdata/index.htm. To prevent double counting
  in burden estimates, 35 covered financial institutions that are also
  affected entities as broker-dealers were removed from the count; the
  count of introducing brokers in commodities as of year-end 2023 was
  provided by the CFTC.
\i\ 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 (accessed Feb. 29, 2024), available
  at https://www.sec.gov/dera/data/form-ncen-data-sets.

31 CFR 1010.410(a) Through (c)
    Description of Recordkeepers: Financial institutions providing 
extensions of credit in excess of $10,000 (other than those secured by 
real property), and participating in transfers of funds, currency, 
other monetary instruments, checks, investment securities, or credit of 
more than $10,000 to or from the United States. FinCEN expects that 
while these requirements apply equally to all of types of financial 
institutions listed in table 1 (above), the different nature and volume 
of the business of these different types of financial institutions 
means that these requirements are likely, in practice, to impose a 
greater recordkeeping burden on some types of financial institutions 
than on others. In particular, agent MSBs are typically significantly 
smaller than principal MSBs, engage in a significantly lower volume of 
transactions, and consequently should experience a significantly lower 
burden on an institution-by-institution basis.
31 CFR 1010.410(d)
    As noted above, the recordkeeping burden for 31 CFR 1010.410(d) is 
accounted for under OMB control number 1506-0056, which applies to 31 
CFR 1010.370(a). A notice to renew OMB control number 1506-0056 was 
published in the Federal Register in February 2024.\39\
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    \39\ See FinCEN, Agency Information Collection Activities: 
Proposed Renewal; Comment Request; Renewal Without Change of Bank 
Secrecy Act Regulations Requiring the Reports of Certain Domestic 
Transactions, 89 FR 13802 (Feb. 23, 2024).
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31 CFR 1010.410(e)
    Description of Recordkeepers: Financial institutions other than 
banks that conduct transmittals of funds in the amount of $3,000 or 
more. FinCEN expects that money transmitters (a type of MSB) will 
comprise the overwhelming majority. Moreover, FinCEN expects that 
principal money transmitters will engage in significantly more activity 
of this kind than agent money transmitters. FinCEN is interested to 
receive comments on whether these expectations are sound, and if not, 
then the degree to which different categories of financial institutions 
will be affected differently by this recordkeeping requirement.
31 CFR 1010.410(f)
    Description of Recordkeepers: Financial institutions, including 
banks, that are the originator's bank, transmittor's financial 
institution or an intermediary bank or financial institution in a funds 
transfer or other transmittal of funds in the amount of $3,000 or more. 
FinCEN expects primarily banks, including credit unions, and money 
transmitters (one type of MSB) to comprise the population of affected 
financial institutions. Moreover, FinCEN expects that principal money 
transmitters will engage in significantly more activity of this kind 
than agent money transmitters. FinCEN is interested to receive comments 
on whether these expectations are sound, and if not then the degree to 
which different categories of financial institutions will be affected 
differently by this recordkeeping requirement.
31 CFR 1020.410
    Description of Recordkeepers: Banks, including credit unions, that 
conduct funds transfers in amounts of $3,000 or more, and banks that 
conduct transactions addressed in 31 CFR 1020.410(c).
31 CFR 1022.420
    Description of Recordkeepers: MSBs that are providers or sellers of 
prepaid access, as defined in 31 CFR 1010.100(ff)(4) and (7) and that 
conduct prepaid access-related transactions.
    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 and responsive modifications to current estimates.

Part 2. Annual PRA Burden and Cost

OMB Control Number 1506-0058
31 CFR 1010.410(a) Through (c)
    Each financial institution must retain an original or a copy of 
records related to extensions of credit in excess of $10,000 (other 
than those secured by real property), and an original or copy of 
records related to transfers of funds, currency, other monetary 
instruments, checks, investment securities, or credit of more than 
$10,000 to or from the United States.\40\ Due to the challenges of 
obtaining the total number of such records required to be maintained 
per financial institution, in its most recent control number renewal 
FinCEN estimated that the average annual recordkeeping burden per 
financial institution for these requirements was 50 hours per financial 
institution.\41\ In the absence of additional data or other information 
necessary to construct a more accurate estimate of total burden, FinCEN 
(1) continues to estimate that the average annual hourly burden of 
complying with 31 CFR 1010.410(a) through (c) is 50 hours per financial 
institution that is not an agent MSB, and 5 hours per agent MSB, (2) 
requests public comment on the reasonableness and accuracy of these 
estimates, and (3) requests any data, studies, and quantitative or 
qualitative reports that would inform a revised estimate of burden.\42\
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    \40\ 31 CFR 1010.410(a) through (c).
    \41\ See supra note 38.
    \42\ See infra Requests for Comment part (ii).
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    Based on an estimate of approximately 273,832 affected financial 
institutions \43\ multiplying 44,671 (financial institutions other than 
agent MSBs) by 50 (hours) and 229,161 (agent MSBs) by 5 (hours) results 
in a total estimate of annual hourly burden of approximately 3,379,355 
hours.
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    \43\ See supra table 1. 30,952 represents the number of 
financial institutions listed in the title of this notice, other 
than MSBs that are providers and sellers of prepaid access, because 
such MSBs would not conduct transactions described in 31 CFR 
1010.410(a) through (c).
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31 CFR 1010.410(e)
    Each nonbank financial institution that conducts transmittals of 
funds in amounts of $3,000 or more must collect and retain information 
related to these transactions. Due to the challenges of obtaining the 
total number of transmittals of funds of $3,000 or more conducted per 
nonbank financial institution, and the uncertain significance for 
burden calculation of the maintenance of different numbers of such 
records by different financial institutions, FinCEN estimated, in its 
most recent control number renewal, that the average annual 
recordkeeping burden per financial institution was approximately 16 
hours per affected

[[Page 65976]]

financial institution.\44\ In the absence of information suggesting a 
more accurate way of estimating total burden, FinCEN continues to 
estimate that the average annual hourly burden to comply with 31 CFR 
1010.410(e) is 16 hours per financial institution. As described above 
and detailed below,\45\ public comment is invited.
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    \44\ See supra note 38.
    \45\ See infra Requests for Comment part (ii).
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    Based on an estimate of approximately 16,897 MSBs \46\ providing 
money transmission services, multiplying by 16 (hours) results in a 
total estimate of annual hourly burden of approximately 270,352 hours.
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    \46\ See supra table 1 for the estimated number of MSBs that 
provide money transmission services.
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31 CFR 1010.410(f)
    Each financial institution must transmit information on funds 
transfers and transmittals of funds when acting as the originator's 
bank, the transmittor's financial institution or an intermediary bank 
or financial institution. Due to the challenges of obtaining the total 
number of funds transfers or transmittals of funds for which a 
financial institution was acting as the originator's bank, the 
transmittor's financial institution, or an intermediary bank or 
financial institution, and the uncertain significance for burden 
calculation of the maintenance of different numbers of such records by 
different financial institutions, FinCEN estimated, in its most recent 
control number renewal, that the annual recordkeeping burden per 
financial institution was an average of 12 hours per affected financial 
institution.\47\ In the absence of information suggesting a more 
accurate way of estimating total burden, FinCEN continues to estimate 
that the average annual hourly burden to comply with 31 CFR 1010.410(f) 
is 12 hours per financial institution.
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    \47\ See supra note 38.
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    26,959 banks and MSBs conducting money transmission,\48\ multiplied 
by 12 hours, results in a total annual hourly burden estimate of 
323,508 hours.
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    \48\ See supra table 1. 26,959 comprises 10,062 banks and 16,897 
MSBs that provide money transmission services.
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31 CFR 1022.420
    Each provider or seller of prepaid access is required to maintain 
access to transactional records generated in the ordinary course of 
business that would be needed to reconstruct prepaid access activation, 
loads, reloads, purchases, withdrawals, transfers, or other prepaid-
related transactions. Due to the challenges of obtaining the total 
number of prepaid access transactions, and the uncertain significance 
for burden calculation of the maintenance of different numbers of such 
records by different financial institutions, FinCEN estimated, in its 
most recent control number renewal, that the annual recordkeeping 
burden per financial institution was 16 hours for every affected 
financial institution.\49\ In the absence of information suggesting a 
more accurate way of estimating total burden, FinCEN continues to 
estimate that the average annual hourly burden to comply with 31 CFR 
1022.420 is 16 hours per financial institution.
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    \49\ See supra note 38.
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    2,664 MSBs which are providers or sellers of prepaid access,\50\ 
multiplied by 16 hours, results in a total annually hourly burden 
estimate of 42,624 hours.
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    \50\ See supra table 1 for the total number of MSBs that are 
providers or sellers of prepaid access.
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    Total Annual PRA Burden for OMB Control Number 1506-0058: 4,015,839 
hours.\51\
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    \51\ 3,379,355 hours (31 CFR 1010.410(a)-(c)) + 270,352 hours 
(31 CFR 1010.410(e)) + 323,508 hours (31 CFR 1010.410(f)) + 42,624 
hours (31 CFR 1022.420) = 4,015,839 hours.
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OMB Control Number 1506-0059
31 CFR 1020.410
    Banks, including credit unions, are required to: (1) collect and 
retain information on funds transfers when conducting funds transfers 
in amounts of $3,000 or more; and (2) retain an original or copy of 
records when conducting transactions addressed in 31 CFR 1020.410(c). 
Due to the challenges of obtaining the total number of funds transfers 
of $3,000 or more conducted by each bank, and the challenges of 
obtaining the total number of transactions conducted by each bank that 
would trigger recordkeeping requirements in 31 CFR 1020.410(c), and the 
uncertain significance for burden calculation of different financial 
institutions conducting different numbers of such transactions, FinCEN 
estimated, in its most recent control number renewal, that the annual 
recordkeeping burden per bank was an average of 100 hours per affected 
financial institution.\52\ In the absence of information suggesting a 
more accurate way of estimating total burden, FinCEN continues to 
estimate that the average annual hourly burden to comply with the 
recordkeeping requirements in 31 CFR 1020.410 is 100 hours per bank.
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    \52\ See supra note 38.
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    10,062 banks \53\ multiplied by 100 hours results in a total annual 
hourly burden estimate of 1,006,200 hours.
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    \53\ See supra table 1 for the total number of banks.
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    Total Annual PRA Burden for OMB Control Number 1506-0059: 1,006,200 
hours.
    Total Annual PRA Burden for OMB Control Numbers 1506-0058 and 1506-
0059.
    FinCEN's estimate of the total annual PRA burden (5,022,039 hours) 
includes each of the recordkeeping requirements being renewed in this 
notice, detailed in table 2 below:

   Table 2--Distribution of Estimated Total Annual Burden Hours per Requirement by Type of Affected Financial
                                                  Institutions
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                                                                                   Annual burden
                                                                     Number of     estimate per    Total annual
        Regulatory requirement             Affected financial        financial       financial     burden hours
                                            institution type       institutions   institution in  per regulatory
                                                                                       hours        requirement
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31 CFR 1010.410(a)--(c)...............  Financial institutions            44,671              50       2,233,550
                                         as defined in 31 CFR
                                         1010.100(t), excluding
                                         agent MSBs.
                                        Financial institutions           229,161               5       1,145,805
                                         as defined in 31 CFR
                                         1010.100(t) that are
                                         exclusively agent MSBs.
31 CFR 1010.410(e)....................  MSBs that conduct money           16,897              16         270,352
                                         transmission.
31 CFR 1010.410(f)....................  Banks and MSBs the                26,959              12         323,508
                                         conduct money
                                         transmission.

[[Page 65977]]

 
31 CFR 1022.420.......................  MSBs that are providers            2,664              16          42,624
                                         or sellers of prepaid
                                         access.
31 CFR 1020.410.......................  Banks...................          10,062             100       1,006,200
                                                                 -----------------------------------------------
    Total annual burden hours.........  ........................  ..............       5,022,039
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    FinCEN is utilizing the same fully loaded composite hourly wage 
rate of $106.30 utilized in the 2024 notices of proposed rulemaking 
(NPRMs) entitled Customer Identification Programs for Registered 
Investment Advisers and Exempt Reporting Companies and Anti-Money 
Laundering and Countering the Financing of Terrorism Programs, as well 
as in recent 60-Day Notices to renew OMB control numbers corresponding 
to specific BSA regulations.\54\
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    \54\ See, e.g., FinCEN and SEC, NPRM Customer Identification 
Programs for Registered Investment Advisers and Exempt Reporting 
Advisers, 89 FR 44571 (May 21, 2024); FinCEN, NPRM Anti-Money 
Laundering and Countering the Financing of Terrorism Programs NPRM, 
89 FR 55428 (July 3, 2024); FinCEN, Agency Information Collection 
Activities; Proposed Renewal; Comment Request; Renewal Without 
Change of the Customer Identification Program Regulatory 
Requirements for Certain Financial Institutions, 89 FR 51940 (June 
20, 2024); FinCEN, Agency Information Collection Activities; 
Proposed Renewal; Comment Request; Renewal Without Change of Due 
Diligence Programs for Correspondent Accounts for Foreign Financial 
Institutions and for Private Banking Accounts, 89 FR 49273, (June 
11, 2024).
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    The total estimated cost of the annual PRA burden is 
$533,842,745.70, as reflected in table 3 below:

                               Table 3--Estimated Total Cost of Annual PRA Burden
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                 Regulatory requirement                     Burden hours        Wage rate          Total cost
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31 CFR 1010.410(a)-(c).................................          3,379,355            $106.30    $359,225,436.50
31 CFR 1010.410(e).....................................            270,352             106.30      28,738,417.60
31 CFR 1010.410(f).....................................            323,508             106.30      34,388,900.40
31 CFR 1022.420........................................             42,624             106.30       4,530,931.20
31 CFR 1020.410........................................          1,006,200             106.30     106,959,060.00
                                                        --------------------------------------------------------
    Total annual cost..................................  .................  .................     533,842,745.70
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    Estimated Number of Respondents: 273,832 financial institutions, as 
set out in table 1.
    Estimated Total Annual Recordkeeping Burden: The estimated total 
annual PRA burden is approximately 5,022,039 hours, as set out in table 
2.
    Estimated Total Annual Recordkeeping Cost: The estimated total 
annual PRA cost is approximately $533,842,745.70 as set out in table 3.
    An Agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection of 
information 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: (i) 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; (ii) the accuracy of the 
agency's estimate of the burden of the collection of information; (iii) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; (iv) 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 (v) 
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. 2024-18035 Filed 8-12-24; 8:45 am]
BILLING CODE 4810-02-P