[Federal Register Volume 89, Number 156 (Tuesday, August 13, 2024)]
[Notices]
[Pages 65980-65984]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-18036]


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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 
Additional Records To Be Made and Retained by Dealers in Foreign 
Exchange and Additional Records To Be Made and Retained by Brokers or 
Dealers in Securities

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 dealers in foreign 
exchange and broker-dealers in securities to retain originals or copies 
of specified account or transaction records, and that require dealers 
in foreign exchange to secure and maintain records of the taxpayer 
identification number of persons for whom a transaction account is 
opened or a line of credit is extended. 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-2024-0014 and Office of Management and

[[Page 65981]]

Budget (OMB) control numbers 1506-0052 and 1506-0053.
     Mail: Policy Division, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2024-0014 and OMB control numbers 1506-0052 and 1506-0053.
    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, 1951-1960 and 31 U.S.C. 5311-5314, 
5316-5336, including notes thereto, 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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A. 31 CFR 1022.410--Additional Records To Be Made and Retained by 
Dealers in Foreign Exchange

    Pursuant to 31 CFR 1022.410(a), a dealer in foreign exchange must 
secure and maintain a record of the taxpayer identification number of 
certain persons for whom a transaction account is opened or a line of 
credit is extended. The taxpayer identification number must be obtained 
and recorded within 30 days of the date the account is opened or credit 
line extended, or longer if the person opening the account or seeking 
the line of credit needs to apply for a taxpayer identification or 
social security number. For non-resident aliens, a dealer in foreign 
exchange is required to record the person's passport number or a 
description of some other government document used to verify his or her 
identity. A dealer in foreign exchange will not be treated as violating 
31 CFR 1022.410(a) if it has made a reasonable effort to obtain a 
taxpayer identification number, maintains a list containing the names, 
addresses, and account or credit line numbers of those persons from 
whom it has not secured a taxpayer identification number, and provides 
these names, addresses, and account or credit line numbers to the 
Secretary upon request. Furthermore, a dealer in foreign exchange need 
not secure a taxpayer identification number in instances involving 
accounts for public funds opened by agencies or instrumentalities of 
federal, state, local, or foreign government, accounts for ambassadors, 
career diplomatic or consular officers, military attaches, accredited 
representatives to international organizations and certain other 
aliens, and accounts for unincorporated subordinate units of a tax-
exempt central organization that are covered by a group exemption 
letter.
    Pursuant to 31 CFR 1022.410(b), a dealer in foreign exchange must 
also retain the original or a copy of nine types of documents: (1) 
statements of accounts from banks, including documents representing the 
entries reflected on such statements; (2) daily work records, including 
documents needed to identify and reconstruct currency transactions with 
customers and foreign banks; (3) a record of each exchange of currency 
involving transactions in excess of $1,000, including the customer's 
name and address (and passport or taxpayer identification number unless 
received by mail or common carrier), the date and amount of the 
transaction, and the currency name, country, and total amount of each 
foreign currency; (4) signature cards or other documents evidencing 
signature authority over each deposit or security account, containing 
specified items of information about the customer (including a record 
of the actual owner of the account if customer accounts are maintained 
in a code name); (5) each item, including checks, drafts, and transfers 
of credit, of more than $10,000 remitted or transferred to a person, 
account, or place outside the United States; (6) a record of each 
receipt of currency, other monetary instruments, investment securities 
and checks, and of each transfer of funds or credit, or more than 
$10,000 received on any one occasion directly and not through a 
domestic financial institution, from any person, account, or place 
outside the United States; (7) records prepared or received by the 
dealer in foreign exchange in the ordinary course of business that 
would be needed to reconstruct an account and trace a check in excess 
of $100 deposited in such an account through its internal recordkeeping 
system to its depository institution, or to supply a description of 
such a deposited check; (8) a record of the name, address, and taxpayer 
identification number of any person presenting a certificate of deposit 
for payment, as well as a description of the instrument and the date of 
the transaction; and (9) a system of books and records that enables the 
dealer in foreign exchange to prepare an accurate balance sheet and 
income statement. To the extent that these records include originals or 
copies of checks, drafts, monetary instruments, investment securities, 
or other similar instruments, copies of front and back of such 
instruments must generally be retained.\5\ If no record is made in the 
ordinary course of business of any transaction with respect to which 
records are required to be retained, then such a record shall be 
prepared in writing.\6\ Records must be maintained for five years.\7\
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    \5\ 31 CFR 1010.430(a).
    \6\ 31 CFR 1010.430(b).
    \7\ See 31 CFR 1010.430.
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B. 31 CFR 1023.410--Additional Records To Be Made and Retained by 
Brokers or Dealers in Securities

    Pursuant 31 CFR 1023.410(a), a broker or dealer in securities is 
required to secure and maintain a record of certain identifying 
information for persons who have opened brokerage accounts during the 
period from June 30, 1972 to

[[Page 65982]]

October 1, 2003. The customer identification program (CIP) requirement 
for brokers or dealers in securities has effectively superseded that 
requirement, and CIP requirements are not considered in connection with 
this OMB control number renewal.\8\
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    \8\ 31 CFR 1023.220. The rule has a compliance date of October 
1, 2003. The burden associated with the customer identification 
program requirement is calculated under OMB control number 1506-
0034. For the supersession of this recordkeeping requirement, see 
FinCEN, Customer Identification Program for Broker-Dealers, 68 FR 
25113, 25124 (May 9, 2003).
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    Pursuant to 31 CFR 1023.410(b), a broker or dealer in securities 
must retain an original or copy of: (1) each document granting 
signature or trading authority over each customer's account; (2) a 
record of each remittance or transfer of funds, or of currency, checks, 
other monetary instruments, investment securities, or credit, of more 
than $10,000 to a person, account, or place outside the United States; 
(3) 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 on any one occasion, not through a 
domestic financial institution, from any person, account, or place 
outside the United States; and (4) each record described in paragraphs 
(1), (2), (3), (5), (6), (7), (8), and (9) of 17 CFR 240.17a-3(a). To 
the extent that these records include originals or copies of checks, 
drafts, monetary instruments, investment securities, or other similar 
instruments, copies of front and back of such instruments must 
generally be retained.\9\ If no record is made in the ordinary course 
of business of any transaction with respect to which records are 
required to be retained, then such a record shall be prepared in 
writing.\10\ Records must be maintained for five years.\11\
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    \9\ 31 CFR 1010.430(a).
    \10\ 31 CFR 1010.430(b).
    \11\ See 31 CFR 1010.430.
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II. Paperwork Reduction Act of 1995 (PRA) 12
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    \12\ Public Law 104-13, 109 Stat. 163 (codified at 44 U.S.C. 
3506(c)(2)(A)).
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    Title: Additional records to be made and retained by dealers in 
foreign exchange and additional records to be made and retained by 
brokers or dealers in securities (31 CFR 1022.410 and 31 CFR 1023.410).
    OMB Control Numbers: 1506-0052 and 1506-0053.
    Form Number: Not applicable.
    Abstract: FinCEN is issuing this notice to renew the OMB control 
numbers for record-keeping requirements for dealers in foreign exchange 
and brokers or dealers in securities.
    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: 7,101 financial institutions.\13\
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    \13\ Table 1 below sets forth a distribution of 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 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 the record-keeping requirements for dealers in 
foreign exchange and brokers or dealers in securities. 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 2021 notice to renew the OMB 
control numbers associated with these information collections.\14\
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    \14\ See FinCEN, Agency Information Collections Activities; 
Proposed Renewal; Comment Request: Renewal Without Change of 
Regulations Requiring Additional Records To Be Made and Retained by 
Dealers in Foreign Exchange and Additional Records To Be Made and 
Retained by Brokers or Dealers in Securities, 86 FR 7778 (Feb. 1, 
2021).
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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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                                                  Number of financial
        Type of financial institution                 institutions
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Dealers in foreign exchange..................                  \a\ 3,623
Brokers or dealers in securities.............                  \b\ 3,478
                                              --------------------------
    Total number of financial institutions...                      7,101
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\a\ This number is derived from data as self-reported by MSBs identified
  as active at year-end 2023 in FinCEN's publicly available MSB
  registration database (available at https://www.fincen.gov/msb-state-selector selector, downloaded Feb. 28, 2024).
\b\ This estimate is based on a December 2023 file downloaded from data
  maintained by the U.S. Securities and Exchange Commission's (SEC).
  SEC, Company Information About Active Broker-Dealers available at
  https://www.sec.gov/help/foiadocsbdfoia (accessed on Feb. 28, 2024).

    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.

Part 2. Annual PRA Burden and Cost

OMB Control Number 1506-0052
31 CFR 1022.410(a)
    Each dealer in foreign exchange must secure and maintain a record 
of the taxpayer identification number of certain persons for whom a 
transaction account is opened or a line of credit is extended. The 
taxpayer identification number must be obtained and recorded within 30 
days of the date the account is opened or credit line extended, or 
longer if the person opening the account or seeking the line of credit 
needs to apply for a taxpayer identification or social security number. 
A dealer in foreign exchange will not be treated as violating the 
requirement if it has made a reasonable effort to obtain a taxpayer 
identification number, maintains a list containing the names, 
addresses, and account or credit line numbers of those persons from 
whom it has not secured a taxpayer identification number, and provides 
these names, addresses, and account or credit line numbers to the 
Secretary upon request.
31 CFR 1022.410(b)
    Each dealer in foreign exchange must retain the original or a copy 
of nine types of documents, as described in

[[Page 65983]]

Section I--Statutory and Regulatory Provisions above.
    Due to the challenges of obtaining the total number of such records 
required to be maintained by dealers in foreign exchange under 31 CFR 
1022.410, in its most recent control number renewal, FinCEN estimated 
that the annual recordkeeping burden per dealer in foreign exchange for 
these requirements was 16 hours.\15\ FinCEN continues to estimate that 
the annual hourly burden of complying with 31 CFR 1022.410 is 16 hours 
per dealer in foreign exchange.
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    \15\ See supra note 14.
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    Multiplying 3,623 dealers in foreign exchange \16\ by 16 hours 
results in a total annual hourly burden estimate of 57,968 hours.
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    \16\ See supra table 1.
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OMB Control Number 1506-0053
31 CFR 1023.410(a)
    As noted above, brokers or dealers in securities have no 
recordkeeping responsibilities under this provision; the obligation of 
brokers or dealers in securities to maintain customer identification 
programs pursuant to 31 CFR 1023.220 has effectively replaced these 
responsibilities.
31 CFR 1023.410(b)
    Each broker or dealer in securities must retain an original or copy 
of certain types of documents, as described in Section I--Statutory and 
Regulatory Provisions above.
    Due to the challenges of obtaining the total number of such records 
required to be maintained by brokers or dealers in securities, in its 
most recent control number renewal, FinCEN estimated the annual 
recordkeeping burden per broker or dealer in securities for these 
requirements to be 100 hours.\17\ FinCEN continues to estimate that the 
annual hourly burden of complying with 31 CFR 1023.410 is 100 hours per 
broker or dealer in securities.
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    \17\ See supra note 14.
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    Multiplying 3,478 brokers or dealers in securities \18\ by 100 
hours results in a total annual hourly burden estimate of 347,800 
hours.
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    \18\ See supra table 1.
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Total Annual PRA Hourly Burden for OMB Control Numbers 1506-0052 and 
1506-0053
    FinCEN's estimate of the annual PRA burden, therefore, is 405,768 
hours, as detailed in table 2 below:

   Table 2--Distribution of Estimated Total Annual Burden Hours per Requirement by Type of Affected Financial
                                                   Institution
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                                                                                  Annual burden
                                                   Affected         Number of      estimate per    Total annual
     Regulatory requirement      OMB control      financial         financial       financial      burden hours
                                     No.       institution type   institutions     institution    per regulatory
                                                                                     (hours)        requirement
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31 CFR 1022.410................    1506-0052  Dealers in                  3,623               16          57,968
                                               foreign exchange.
31 CFR 1023.410................    1506-0053  Brokers or                  3,478              100         347,800
                                               dealers in
                                               securities.
                                                                ------------------------------------------------
    Total annual hour burden     ...........  .................  ..............  ...............         405,768
     hours.
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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.\19\
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    \19\ 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 
$43,133,138.40, as reflected in table 3 below:

                               Table 3--Estimated Total Cost of Annual PRA Burden
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                   OMB control No./regulation                     Burden hours      Wage rate       Total cost
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1506-0052 (31 CFR 1022.410)....................................          57,968         $106.30    $6,161,998.40
1506-0053 (31 CFR 1023.410)....................................         347,800          106.30    36,971,140.00
                                                                ------------------------------------------------
    Total cost.................................................  ..............  ..............    43,133,138.40
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    Estimated Number of Respondents: 7,101 financial institutions, as 
set out in table 1.
    Estimated Total Annual Recordkeeping Burden: The estimated annual 
PRA burden is approximately 405,768 hours, as set out in table 2.
    Estimated Total Annual Recordkeeping Cost: The estimated total 
annual PRA cost is approximately $43,133,138.40, 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 
the following: (1) whether the collection of information is necessary 
for the proper performance of the functions of the agency, including 
whether the

[[Page 65984]]

information shall have practical utility; (2) the accuracy of the 
agency's estimate of the burden of the collection of information; (3) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; (4) 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 (5) 
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. 2024-18036 Filed 8-12-24; 8:45 am]
BILLING CODE 4810-02-P