[Federal Register Volume 90, Number 77 (Wednesday, April 23, 2025)]
[Notices]
[Pages 17174-17180]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-06938]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request; Renewal Without Change of Additional Records To Be
Made and Retained by Casinos
AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.
ACTION: Notice and request for comments.
-----------------------------------------------------------------------
SUMMARY: As part of its continuing effort to reduce paperwork and
respondent burden, FinCEN invites comments on the proposed renewal,
without change, of certain existing information collection requirements
found in Bank Secrecy Act (BSA) regulations applicable to casinos and
card clubs. Under these regulations, among other requirements, casinos
and card clubs (collectively, casinos) must secure and maintain--with
respect to each deposit, account, or line of credit--a record of the
name, permanent address, and social security number of the person
involved at the time the funds are deposited, the account is opened, or
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
June 23, 2025.
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-2025-0003 and Office of Management and Budget (OMB) control
number 1506-0054.
Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2025-0003 and OMB control number 1506-0054.
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 by
submitting an inquiry at www.fincen.gov/contact.
SUPPLEMENTARY INFORMATION:
[[Page 17175]]
I. Statutory and Regulatory Provisions
The legislative framework generally referred to as the 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, 12 U.S.C. 1951-1960, 31 U.S.C. 5311-5314 and 5316-5336,
including notes thereto, with implementing regulations at 31 CFR
chapter X.
---------------------------------------------------------------------------
\1\ Public Law 107-56, 115 Stat. 272 (Oct. 26, 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 (Jan.
1, 2021).
---------------------------------------------------------------------------
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 investigations, risk assessments or
proceedings, or in intelligence or counter-intelligence activities,
including analysis, to protect against terrorism, and to implement
anti-money laundering/countering the financing of terrorism (AML/CFT)
programs and compliance procedures.\3\ The Secretary has delegated to
the Director of FinCEN (Director) the authority to administer the
BSA.\4\
---------------------------------------------------------------------------
\3\ See 31 U.S.C. 5311(1)-(2).
\4\ Treasury Order 180-01 (Reaffirmed Jan. 14, 2020); see also
31 U.S.C. 310(b)(2)(I) (providing that the Director of FinCEN shall
``[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.'').
---------------------------------------------------------------------------
Pursuant to 31 CFR 1021.410(a), with respect to each deposit of
funds, account opened, or line of credit extended, a casino is required
to secure and maintain a record of the name, permanent address
(address), and social security number (SSN) of the person involved at
the time the funds are deposited, the account is opened, or credit is
extended.\5\ Where the deposit, account, or line of credit is in the
name of two or more persons, the casino must secure the name, address,
and SSN of each person having a financial interest in the deposit,
account, or line of credit. The casino is required to verify the name
and address of such person(s) at the time the deposit is made, the
account is opened, or credit is extended, by the examination of a
document as described in 31 CFR 1010.312.\6\ The specific identifying
information relied upon must be recorded by the casino in the manner
described in 31 CFR 1010.312.\7\ If a casino is unable to secure the
required SSNs, the casino will not be deemed to be in violation of 31
CFR 1021.410 if the casino has made reasonable efforts to secure the
SSNs, and it maintains a list of the names and addresses of those
persons from whom the casino was unable to obtain the SSNs. The casino
must make the list available to the Secretary upon request. If a person
is a nonresident alien, the casino is also required to record the
person's passport number or a description of another government
document used to verify his or her identity.
---------------------------------------------------------------------------
\5\ Any reference to a ``casino'' in chapter X, other than in 31
CFR 1010.100(t)(5)-(6), shall also include reference to a card club,
unless the provision in question contains specific language varying
its application to card clubs or excluding card clubs. 31 CFR
1010.100(t)(5)(iii). In this notice, a reference to an obligation of
casinos should be understood to apply to card clubs as well, unless
they are expressly excluded.
\6\ In October 2021, FinCEN granted limited exceptive relief to
allow casinos to use suitable non-documentary methods to verify the
identity of online customers. See FIN-2021-R001, ``Exceptive Relief
for Casinos from Certain Customer Identity Verification
Requirements,'' (October 19, 2021), available at https://www.fincen.gov/sites/default/files/2021-10/Casino%20Exceptive%20Relief %20101921_0.pdf.
\7\ 31 CFR 1010.312 requires verification of identity by
examination of a document generally accepted within the banking
community as a means of identification when cashing checks for non-
depositors. The document relied upon for verification must be
recorded.
---------------------------------------------------------------------------
Pursuant to 31 CFR 1021.410(b), casinos must retain either the
original or a copy of each of the following: (1) a record of each time
the casino receives funds for credit to, or deposit into, any person's
account, including the name, address, and SSN \8\ of the person from
whom the casino receives the funds, the date of receipt of the funds
and the amount received; (2) a record of each bookkeeping entry made to
a customer's deposit or credit account with the casino; (3) each
statement, ledger card, or other record of each deposit or credit
account with the casino, showing each transaction in or with respect to
a customer's account with the casino; (4) a record of each extension of
credit in excess of $2,500, the terms and conditions of each such
extension of credit, and repayments, and the customer's name, address,
SSN,\9\ and the date and amount of the transaction (including
repayments); (5) a record of each advice, request, or instruction
received or given by the casino with respect to a transaction involving
a person, account, or place outside the United States; \10\ (6) records
prepared or received by the casino in the ordinary course of business
that would be needed to reconstruct a person's deposit or credit
account with the casino or that would be needed to trace a check
deposited with the casino through the casino's records to the bank of
deposit; (7) all records, documents, or manuals required to be
maintained by a casino under state and local laws or regulations, and
regulations of any governing Indian tribe or tribal government; (8) all
records that are prepared or used by a casino to monitor a customer's
gaming activity; (9) a separate record containing a list of each
transaction between the casino and its customers involving the
following types of instruments having a face value of $3,000 or more:
(i) personal checks; (ii) business checks; (iii) official bank checks;
(iv) cashier's checks; (v) third-party checks; (vi) promissory notes;
(vii) traveler's checks; and (viii) money orders; \11\ (10) a copy of
the compliance program described in 31 CFR 1021.210(b); (11) for card
clubs only, records of all currency transactions by customers,
including, without limitation, records in the form of currency
transaction logs and multiple currency transaction logs, and records of
all activity at cages or similar facilities, including cage control
logs.
---------------------------------------------------------------------------
\8\ If the person from whom the funds were received is a non-
resident alien, the person's passport number or a description of
some other government document used to verify the person's identity
shall be obtained and recorded. 31 CFR 1021.410(b)(1).
\9\ If credit is extended to a non-resident alien, the casino
must obtain and record the non-resident alien's passport number or a
description of another government document used to verify that
person's identity. 31 CFR 1021.410(b)(4).
\10\ If the transaction is a transfer outside the United States
on behalf of a third party, the record must include the third
party's name, address, SSN, signature, and the date and amount of
the transaction. If the person for whom the transaction is being
made is a non-resident alien the record must also include the
person's name, the person's passport number, or a description of
some other government document used to verify the person's identity.
31 CFR 1021.410(b)(5).
\11\ The list must contain the time, date, and amount of the
transaction; the name and address of the customer; the type of
instrument; the name of the drawee or issuer of the instrument; all
reference numbers (e.g., casino account number, personal check
number, etc.); and the name or casino license number of the casino
employee who conducted the transaction. A casino must place
applicable transactions on the list in the chronological order in
which they occur. 31 CFR 1021.410(b)(9)(ii).
---------------------------------------------------------------------------
Pursuant to 31 CFR 1021.410(c), casinos that input, store, or
retain, in whole or in part, for any period of time, any record
required to be maintained by 31 CFR 1010.410 or 31 CFR 1021.410 on
computer disk, tape, or other machine-readable media must retain those
[[Page 17176]]
records in the same format.\12\ All indexes, books, programs, record
layouts, manuals, formats, instructions, file descriptions, and similar
materials that would enable a person to readily access and review the
records described in 31 CFR 1010.410 and 31 CFR 1021.410, and that are
recorded, stored, or retained on computer disk, tape, or other machine-
readable media, must be retained for the period of time such records
are required to be retained.\13\
---------------------------------------------------------------------------
\12\ As FinCEN has noted before, without contradiction from the
industry, whatever additional burden this specific obligation may
have imposed in an earlier era when electronic record retention was
rare, now that such technology is a ubiquitous and unremarkable
aspect of ordinary business practice, the additional burden should
be considered de minimis. See FinCEN, Agency Information Collection
Activities; Proposed Renewal; Comment Request; Renewal Without
Change of Anti-Money Laundering Program Requirements for Casinos, 89
FR 65977, 65979 footnote 22 (Aug. 13, 2024).
\13\ Pursuant to 31 CFR 1010.430(d), covered financial
institutions, including casinos, are required to maintain records of
certain financial transactions for a period of five years.
---------------------------------------------------------------------------
II. Paperwork Reduction Act of 1995 (PRA) 14
---------------------------------------------------------------------------
\14\ Public Law 104-13, 109 Stat. 163 (May 22, 1995), codified
at 44 U.S.C. 3506(c)(2)(A).
---------------------------------------------------------------------------
Title: Additional records to be made and retained by casinos (31
CFR 1021.410).
OMB Control Number: 1506-0054.
Form Number: Not applicable.
Abstract: FinCEN is issuing this notice to renew the OMB control
number for regulations requiring additional records to be made and
retained by casinos.
Affected Public: Businesses or other for-profit institutions.
Type of Review: Renewal without change of a currently approved
information collection.
Frequency: As required.
Estimated Number of Respondents: 1,292 casinos.\15\
---------------------------------------------------------------------------
\15\ Table 1 below presents the population distribution of
casinos and card clubs, by type, 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 Entities Covered by This Notice
------------------------------------------------------------------------
Type of casino Number of casinos
------------------------------------------------------------------------
Commercial (Non-.......................... \a\ 486
Tribal) Casino............................
Tribal casino............................. \b\ 525
Card club................................. \c\ 281
-----------------------------
Total................................. 1,292
------------------------------------------------------------------------
\a\ Estimate based on the American Gaming Association (AGA) ``State of
Play,'' reporting 486 commercial casinos (available at https://www.americangaming.org/state-of-play/, accessed February 28, 2025).
\b\ Estimate based on the AGA ``State of Play,'' reporting 525 Tribal
casinos as of December 31, 2023 (available at https://www.americangaming.org/state-of-play/, accessed February 28, 2025).
\c\ As of December 31, 2023, there were also 281 card clubs unaffiliated
with other casino operations as published in the AGA's ``State of the
States'' annual report, p. 16 (available at https://www.americangaming.org/wp-content/uploads/2024/05/AGA-State-of-the-States-2024.pdf, accessed February 28, 2025).
Estimated Recordkeeping Burden: \16\ In the past, FinCEN noted that
it faced a number of practical challenges when (i) determining the
total number of deposits accepted, accounts opened, or lines of credit
extended by each casino annually, and (ii) estimating how many records
as described under 31 CFR 1021.410(b)(1)-(9) are generated by each
casino each year.\17\ As a result, FinCEN has historically estimated
the number of hours it would take for a casino to obtain and retain the
records described in 31 CFR 1021.410(a) and 31 CFR 1021.410(b)(1)-(9)
as being the same for every casino: 107.5 hours per casino.\18\ Since
the most recent prior renewal, FinCEN has obtained additional data and
qualitative information that enable certain revisions with a view to
improving the overall accuracy of the incremental PRA burden estimates.
Taken together, the effect of these revisions results in a reduction in
the comparable average per casino burden estimate of approximately 30
hours per year for a casino to obtain and retain the records described
in 31 CFR 1021.410(a) and 31 CFR 1021.410(b)(1)-(9).\19\ FinCEN has
also revised downward the estimated annual burden per card club
pursuant to the requirements of 31 CFR 1021.410(b)(11) by approximately
17 hours per club on average. The reasons for these revisions are
discussed in greater detail below, and FinCEN is requesting public
comments, particularly to the extent that bringing to FinCEN's
attention any concerns, errors, or missing data would further improve
the accuracy of the incremental burden estimates for OMB control number
1506-0054.
---------------------------------------------------------------------------
\16\ In addition to 31 CFR 1021.410, casinos are required to
collect and retain information related to transmittals of funds
pursuant to 31 CFR 1010.410. The burden for financial institutions
to comply with 31 CFR 1010.410 is included in OMB control number
1506-0058. OMB control number 1506-0058 was renewed in 2024,
following a notice and request for comment published in the Federal
Register. 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, 89
FR 65971 (Aug. 13, 2024). In the notice, FinCEN assigned an expected
average recordkeeping burden of 50 hours per casino or card club per
year associated with the requirements in 31 CFR 1010.410(a)-(c). The
burden estimates covered in this notice are meant to complement that
50-hour burden estimate and should be considered an incremental
assessment of the additional time and other costs related to
recordkeeping as required by 31 CFR 1021.410 that are not otherwise
accounted for under other OMB control numbers pertaining to the same
(or similar) activities, including OMB control numbers 1506-0051 and
1506-0058.
\17\ See FinCEN, Agency Information Collection Activities;
Proposed Renewal; Comment Request; Renewal Without Change of
Additional Records To Be Made and Retained by Casinos, 87 FR 8935
(Feb. 16, 2022).
\18\ Id.
\19\ FinCEN recognizes that, in general, the population of
covered casinos is highly heterogeneous and that an estimated
average therefore may not represent the actual recordkeeping costs
incurred by any one specific casino. To the extent that data or
anecdotal information would enable FinCEN to more appropriately
tailor its burden estimates to the actual business practices and
accompanying costs to specific types or size cohorts of casinos,
public comment is invited (see Additional Requests for Comment
below).
---------------------------------------------------------------------------
(a) 31 CFR 1021.410(a)
Each casino must secure and maintain a record of the name, address,
and SSN of each person who deposits funds, opens an account, or obtains
a line of credit with the casino. Each casino must verify and document
verification of this information. If a casino is unable to obtain SSNs
connected to any of these transactions after making a reasonable effort
to do so, the casino must maintain a list of the names and addresses of
persons from whom the casino was unable to obtain SSNs, to be made
available to the Secretary upon request. FinCEN is assigning an
expected burden of one business day, or eight hours, on average, per
casino, associated with creating and maintaining such lists, and a
recordkeeping burden of two minutes per transaction associated with
securing and maintaining the required personally identifying
information connected with fund deposits, account openings, and
extensions of credit less than or equal to $10,000.\20\
---------------------------------------------------------------------------
\20\ The recordkeeping burden associated with extensions of
credit in excess of $10,000 is included in OMB control number 1506-
0058. See supra note 16.
---------------------------------------------------------------------------
[[Page 17177]]
(b) 31 CFR 1021.410(b)
FinCEN's estimate of incremental burden per element of 31 CFR
1021.410(b) is discussed below.
(b)(1): 31 CFR 1021.410(b)(1) requires a record of each time the
casino receives funds for credit to or deposit into any person's
account, including the name, address, and SSN \21\ of the person from
whom the casino receives the funds, the date of receipt of the funds
and the amount received. FinCEN notes that (b)(1) only incrementally
requires (1) personally identifying information distinct from 31 CFR
1021.410(a) requirements when the person from whom the funds are
received is not the same person already associated with the account and
(2) transaction-specific information, namely the dates and amounts of
the transaction. Because FinCEN expects these records to be
electronically generated in the ordinary course of business for the
majority of covered transactions, FinCEN is assigning an average of
only one minute incremental burden per transaction.
---------------------------------------------------------------------------
\21\ 31 CFR 1021.410(b)(1) also states that if the person from
whom the funds were received is a non-resident alien, the person's
passport number or a description of some other government document
used to verify the person's identity shall be obtained and recorded.
---------------------------------------------------------------------------
(b)(2)-(3): 31 CFR 1021.410(b)(2) and (b)(3) require a casino to
retain a record of certain transaction-related information, namely,
each bookkeeping entry made to a customer's deposit or credit account
((b)(2)) and/or each statement, ledger card, or other record of each
deposit or credit account with the casino, showing each transaction in
or with respect to a customer's account ((b)(3)) with the casino.
Because FinCEN believes that such records are already generated and
retained in connection with the ordinary business practices of a
casino, it is not assigning an incremental recordkeeping burden to
these activities. However, FinCEN is mindful that in some cases, such
records, though not prepared primarily for FinCEN purposes, may need to
be preserved or maintained for longer periods of time to satisfy FinCEN
recordkeeping obligations than they would be for the original purposes
for which they were created. As such it is possible that certain
technology costs may accrue related to the secure storage of data and
information for the incremental period of time unique to FinCEN
requirements. FinCEN is therefore soliciting comments on the
appropriateness of assigning a technology cost to these requirements
and invites the public to provide data related to the incremental
annual costs incurred by casinos associated with this retention of
records.
(b)(4): 31 CFR 1021.410(b)(4) requires a record of each extension
of credit in excess of $2,500, the terms and conditions of each such
extension of credit, and repayments, and the customer's name, address,
and SSN. FinCEN notes an estimate provided as part of its PRA renewal
for OMB control number 1506-0058 where an estimate of 50 average annual
burden hours includes the recordkeeping burden associated with 31 CFR
1010.410(a), the incremental burden estimated in connection with 31 CFR
1021.410(b)(4) covers only: (1) the transactions greater than $2,500
but less than or equal to the $10,000 threshold that would trigger the
same or similar recordkeeping requirements under 31 CFR 1010.410(a);
and (2) the incremental additional transaction-specific information
required to be recorded concerning repayments. Because FinCEN does not
have access to transaction-level data that would establish the volume
of credit extensions that occur in this range on an annual basis per
casino, and because FinCEN believes repayment information would already
be collected and retained by the casino in the ordinary course of
business, it is assigning a one business day, or eight hour, burden on
average to casinos in connection with (b)(4) recordkeeping
requirements.
(b)(5): 31 CFR 1021.410(b)(5) requires a record of each advice,
request, or instruction received or given by the casino with respect to
a transaction involving a person, account, or place outside the United
States. FinCEN notes an estimate provided as part of its PRA renewal
for OMB control number 1506-0058 where an estimate of 50 average annual
burden hours includes the recordkeeping burden associated with 31 CFR
1010.410(b) and (c), the incremental burden estimated in connection
with 31 CFR 1021.410(b)(5) covers only the transactions less than or
equal to the $10,000 threshold that would trigger the same or similar
recordkeeping requirements under 1010.410(b) or (c). FinCEN believes
that due to the nature of casino activities involving international
transfers or transactions, it is generally unlikely for these
activities to occur as commonly in amounts below $10,000. Therefore, as
an incremental recordkeeping requirement, it is assigning a one
business day, or eight-hour, burden on average to casinos in connection
with (b)(5) recordkeeping requirements.
(b)(6)-(8): 31 CFR 1021.410(b)(6)-(8) require the retention of
records generated by casinos that were originally and primarily
prepared for purposes other than satisfaction of AML/CFT obligations.
These records are either prepared or received in the ordinary course of
business ((b)(6)), required to be maintained by a casino under state
and local laws or regulations, and regulations of any governing Indian
tribe or tribal government ((b)(7)), or prepared or used by a casino to
monitor a customer's gaming activity ((b)(8)). Because these records
are neither produced nor maintained, in the first instance, for FinCEN,
the incremental burden estimate assigned to them is zero hours.
However, FinCEN is mindful that in some cases, such records, though
not prepared primarily for FinCEN purposes, may need to be preserved or
maintained for longer periods of time to satisfy FinCEN recordkeeping
obligations than they would be for the original purposes for which they
were created. Thus, it is possible that certain technology costs may
accrue related to the secure storage of data and information for the
incremental period of time unique to FinCEN requirements. FinCEN is
therefore soliciting comments on the appropriateness of assigning a
technology cost to these requirements and invites the public to provide
data related to the incremental annual costs incurred by casinos
associated with this retention of records.
(b)(9): 31 CFR 1021.410(b)(9) requires a casino to maintain a
separate record containing a list of each transaction between the
casino and its customers involving certain instruments \22\ having a
face value of $3,000 or more. While FinCEN expects that these
transactions would be recorded in the ordinary course of business and
are, in most cases, likely to be recorded in an electronic format that
could be readily queried, FinCEN recognizes that the requirement to
maintain a separate record may entail both labor to prepare and review.
It is therefore assigning an average annual estimate of two business
days, or 16 hours, of incremental burden in connection with (b)(9)
recordkeeping requirements.
---------------------------------------------------------------------------
\22\ As discussed above, these are: (i) personal checks; (ii)
business checks; (iii) official bank checks; (iv) cashier's checks;
(v) third-party checks; (vi) promissory notes; (vii) traveler's
checks; and (viii) money orders.
---------------------------------------------------------------------------
(b)(10): 31 CFR 1021.410(b)(10) requires each casino to retain a
copy of the casino's AML compliance program as described in 31 CFR
1021.210(b). Because the time burden of creating, retaining, and
maintaining records associated with a casino's AML/CFT program
requirements is already accounted for and renewed with the
[[Page 17178]]
PRA renewal for OMB control number 1506-0051, FinCEN does not expect an
additional incremental burden to accrue as a result of the requirements
in this notice related to 31 CFR 1021.410(b)(10).\23\
---------------------------------------------------------------------------
\23\ See FinCEN, Agency Information Collection Activities;
Proposed Renewal; Comment Request; Renewal Without Change of Anti-
Money Laundering Program Requirements for Casinos, 89 FR 65977,
65979 footnote 22 (Aug. 13, 2024).
---------------------------------------------------------------------------
(b)(11): 31 CFR 1021.410(b)(11) establishes obligations specific
and unique for a card club \24\ to document records of all currency
transactions by customers and to retain the original or a copy or
reproduction of all currency transactions logs, multiple currency
transaction logs, and cage control logs. FinCEN did not previously have
a sufficiently reliable way to independently estimate the number of
cash transactions conducted annually per card club or to establish what
proportion of these were already maintained electronically. For these
reasons, in the past, FinCEN relied upon an estimate of 1,000
transactions per year as the expected average number conducted at each
of an estimated total of 215 card clubs, in total, and assessed a
burden estimate of five minutes per expected transaction. FinCEN is
revising its methodology in this notice based, in part, on its analysis
of CTR filings by card clubs and further, in part, after a review of
relevant market reports and consultation with federal compliance
examiners regarding observed current market practices. At this time
FinCEN believes there are approximately 281 card clubs currently
operating that would incur recordkeeping burdens in connection with an
average of 2,000 cash transactions per year. Because recordkeeping is
now predominantly conducted using digital technology in the ordinary
course of business, FinCEN is reducing its incremental burden estimate
per record to two minutes per transaction on average. FinCEN invites
comments on the continuing reasonableness of its previous approach and
on the likelihood that its changes in methodology more accurately
reflect the cost profile of compliance associated with current
practices.
---------------------------------------------------------------------------
\24\ See supra note 5.
---------------------------------------------------------------------------
(c) 31 CFR 1021.410(c)(1) and (2)
Pursuant to 31 CFR 1021.410(c)(1) and (2), casinos must retain
records required to be maintained under 31 CFR 1010.410 and 31 CFR
1021.410 on computer disk, tape, or other machine-readable media in the
same format as originally input, stored, or maintained for five
years.\25\ As noted above, FinCEN has historically had limited data
with which to estimate the volume of transactions described in 31 CFR
1021.410 that are conducted annually by casinos. For that reason, in
the past, FinCEN has generally estimated that the annual burden per
casino to maintain such records in the format described in 31 CFR
1021.410(c)(1) and (2) is the same for all casinos: four hours.
---------------------------------------------------------------------------
\25\ The records required to be maintained under 31 CFR 1021.410
are described in more detail above. See supra Section I.
---------------------------------------------------------------------------
In light of technological advancements, generally, since FinCEN
originally promulgated these requirements, this estimate is being
revisited as the use of technology and electronic media for
recordkeeping has become ubiquitous. In its latest PRA renewal of OMB
control number 1506-0051, FinCEN recently solicited comment on its
intent to reduce the previously assigned burden of compliance with 31
CFR 1021.210(b)(vi).\26\ FinCEN did not receive any comments opposed to
its proposed changes and is therefore adopting the same approach with
its estimates in connection with 31 CFR 1021.410(c)(1) and (2),
reducing the estimated incremental burden hours from four to zero.
---------------------------------------------------------------------------
\26\ See supra note 12.
---------------------------------------------------------------------------
However, FinCEN is mindful that in some cases, it is possible that
certain technology costs may accrue related to the secure storage of
data and information that are unrelated to the employment of human
labor. FinCEN is therefore soliciting comments on the appropriateness
of assigning a technology cost to the recordkeeping requirements of 31
CFR 1021.410(c)(1) and (2), and invites the public to provide data
related to the incremental annual costs incurred by casinos associated
with this retention of records.
FinCEN's estimate of the total annual PRA burden, therefore, is
118,863 hours, as detailed in table 2 below:
Table 2--Estimated Hourly Burden Associated With the Recordkeeping Activities of 31 CFR 1021.410
----------------------------------------------------------------------------------------------------------------
Annual
Recordkeeping requirement Description Number of Average hours Average annual burden
respondents per response frequency hours
----------------------------------------------------------------------------------------------------------------
31 CFR 1021.410(a)........... Maintain a record of 1,292 8............... 1.............. 10,336
the name, address,
and SSN of each
person who deposits
funds, opens an
account, or obtains
a line of credit
with the casino.
31 CFR 1021.410(a)........... Verify the name and 1,292 1/30 (2 minutes) 1,000 (~4 per 43,067
address of such per reportable business day
person(s) at the transaction. on average)
time the deposit is \a\.
made, the account is
opened, or credit is
extended.
31 CFR 1021.410(b)(1)........ Maintain records of 1,292 1/60 (1 minute) 250 (~1 per 5,383
transactions per reportable business day
described in 31 CFR transaction. on average)
1021.410(a) when the \b\.
person from whom the
funds are received
is not the same
person already
associated with the
account.
31 CFR 1021.410(b)(4)........ Maintain a record of 1,292 8............... 1.............. 10,336
each extension of
credit in excess of
$2,500, the terms
and conditions of
each such extension
of credit, and
repayments, and the
customer's name,
address, SSN.
31 CFR 1021.410(b)(5)........ Maintain a record of 1,292 8............... 1.............. 10,336
each advice, request
or instruction
received or given by
the casino with
respect to a
transaction
involving a person,
account, or place
outside the United
States.
31 CFR 1021.410(b)(9)........ Maintain a record 1,292 16.............. 1.............. 20,672
containing a list of
each transaction
between the casino
and its customers
involving certain
instruments having a
face value of $3,000
or more.
31 CFR 1021.410(b)(11)....... Document records of 281 1/30 (2 minutes) 2,000 (~8 per 18,733
all cash per transaction. business day)
transactions by \c\.
customers.
[[Page 17179]]
31 CFR 1021.410(c)(1) and (2) Casinos must record 1,292 0............... NA............. 0
any of the records
required to be
maintained under 31
CFR 1010.410(b) on
computer disk, tape,
or other machine-
readable media to
retain those records
in same format for
five years.
-----------------------------------------------------------
Total.................... ..................... ........... ................ ............... 118,863
----------------------------------------------------------------------------------------------------------------
\a\ In 2024, casinos and card clubs filed approximately 16,000 suspicious activity reports (SARs) mentioning
deposits, lines of credit, or credit accounts. Assuming that these 16,000 reports represented 1% of the total
transactions of this kind results in 1,600,000 total transactions, or approximately 5 per casino per business
day. FinCEN assumes that most of these transactions (4 out of 5) will involve the account holder.
\b\ Ibid.
\c\ In 2024, card clubs filed approximately 120,000 currency transaction reports (CTRs), or approximately 427
per card club on average. Because CTRs are only required for transactions over $10,000, and most customers
conducting cash transactions will spend or win significantly less than this amount, FinCEN conservatively
estimates that the true number is closer to 562,000, or 2,000 annual transactions per card club.
To estimate the costs associated with the annual PRA burden hours,
FinCEN is utilizing the fully loaded composite hourly wage rate of
$120.07, or rounded to the nearest dollar, $120.00.\27\ The total
estimated cost of the annual PRA burden is $14,263,560, as reflected in
table 3 below:
---------------------------------------------------------------------------
\27\ The wage rate applied here is a general composite hourly
wage ($85.55), scaled by a private-sector benefits factor of 1.42
($120.07 = $85.55 x 1.42), that incorporates the mean wage data
(available for download at https://www.bls.gov/oes/tables.htm, ``May
2023--National industry-specific and by ownership'') associated with
the six occupational codes (11-1010: Chief Executives; 11-3021:
Computer and Information Systems Managers; 11-3031: Financial
Managers; 13-1041: Compliance Officers; 23-1010: Lawyers and
Judicial Law Clerks; 43-3099: Financial Clerks, All Other) for each
of the nine groupings of NAICS industry codes that FinCEN determined
are most directly comparable to its eleven categories of covered
financial institutions as delineated in 31 CFR parts 1020 to 1030.
The benefit factor is 1 plus the benefit/wages ratio, where as of
June 2023, Total Benefits = 29.4 and Wages and salaries = 70.6
(29.4/70.6= 0.42) based on the private industry workers series data
downloaded from https://www.bls.gov/news.release/archives/ecec_09122023.pdf, accessed December 22, 2024. Given that many
occupations provide benefits beyond cash wages (e.g., insurance,
paid leave, etc.), the private sector benefit is applied to reflect
the total cost to the employer.
Table 3--Total Cost Associated With the Recordkeeping Activities of 31 CFR 1021.410
----------------------------------------------------------------------------------------------------------------
Annual burden
Regulatory requirement hours Wage rate Total cost
----------------------------------------------------------------------------------------------------------------
31 CFR 1021.410(a).............................................. 10,336 \a\ $120 $1,240,320
43,067 5,168,040
31 CFR 1021.410(b)(1)........................................... 5,383 645,960
31 CFR 1021.410(b)(4)........................................... 10,336 1,240,320
31 CFR 1021.410(b)(5)........................................... 10,336 1,240,320
31 CFR 1021.410(b)(9)........................................... 20,672 2,480,640
31 CFR 1021.410(b)(11).......................................... 18,733 2,247,960
31 CFR 1021.410(c).............................................. 0 0
-----------------------------------------------
Total cost.................................................. .............. .............. 14,263,560
----------------------------------------------------------------------------------------------------------------
\a\ See footnote 27.
Estimated Number of Respondents: 1,292, as set out in table 1.
Estimated Total Annual Recordkeeping Burden: The estimated total
annual PRA burden is 118,863 hours, as set out in table 2.
Estimated Total Annual Recordkeeping Cost: The estimated total
annual PRA cost is $14,263,560, as set out in table 3.
Under the PRA, FinCEN as a Federal 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.
Requests for Comment: 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.
General Request for Comments--Comments are invited on: (1) 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; (2) the accuracy of FinCEN's estimates 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.
Additional Requests for Comment--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. To assist with those
activities, FinCEN is also requesting comments in response to the
following additional questions:
(1) FinCEN estimates rely on certain interpretations and
assumptions about how the incremental burden estimates for compliance
obligations with casino recordkeeping requirements associated with OMB
control number 1506-0054 are contextualized within the framework of a
casino's other business activities, compliance obligations (for
[[Page 17180]]
other regulating bodies and agencies), and other FinCEN requirements.
Are there concerns, errors, misunderstanding of current business
practices, or missing data, that if brought to FinCEN's attention might
further improve the accuracy of these estimates?
(2) FinCEN recognizes that, in general, the population of covered
casinos and card clubs is highly heterogeneous and that an estimated
average therefore may not represent the actual recordkeeping costs
incurred by any one specific casino or card club. To what extent are
the costs associated with a casino's recordkeeping requirements fixed
versus variable? Does this differ for casinos and card clubs? Does the
incremental burden of FinCEN requirements vary substantially by state
or by other regulating bodies?
(3) To more appropriately tailor its burden estimates to the actual
business practices and accompanying costs of specific types or size
cohorts of casinos or card clubs, FinCEN is requesting data, studies,
and qualitative information (including anecdotal evidence) that would
facilitate estimates that are better tailored to the elements of burden
that vary by establishment size or other identifiable attributes.
(4) Certain elements of the recordkeeping burden assigned to 31 CFR
1021.410 are estimated as a function of time spent by casino staff on
recordkeeping activities and are estimated independently of the
differences in volume of transactions occurring at casinos or card
clubs. This is because FinCEN anticipates the primary incremental
burden for some of these elements to be attributable to collating and
reviewing records that are already maintained for other business
purposes. To what extent are these estimated burdens consistent with
the work performed as part of a casino's compliance with FinCEN
requirements? To what extent is the time burden of compliance with
FinCEN recordkeeping requirements distinguishable from other business
activities?
(5) Per casino, how many persons deposit funds, open an account, or
obtain a line of credit with a casino on an annual basis? How
substantial are differences in this number when considering the
variation in casinos by size, geographic location, or types of games,
gambling, or betting offered?
(6) How often, or in what proportion of covered transactions, does
a casino receive funds for credit to or deposit into a person's account
from a person other than the named person on the account?
(7) Are there incremental technology costs that should be
considered as part of the compliance burden with 31 CFR 1021.410(b)(2)
and (b)(3)? Does any portion of these costs vary by transaction volume?
(8) Are there incremental technology costs that should be
considered as part of the compliance burden with 31 CFR 1021.410(b)(6)-
(8)? Does any portion of these costs vary by transaction volume?
(9) FinCEN is requesting information that would inform updates to
its estimate of the recordkeeping burden associated with 31 CFR
1021.410(b)(11). To what extent do records continue to be generated,
maintained, and preserved on paper? Are there exemplary counterexamples
of recordkeeping activities that have not already been converted to
electronic processes and formats? Given any changes in recordkeeping
technology, are there any remaining instances where FinCEN's historical
burden estimate of five minutes per record is still more applicable?
(10) Are there incremental technology costs that should be
considered as part of the compliance burden with 31 CFR 1021.410(c)(1)
and (2)? Does any portion of these costs vary by transaction volume?
(11) How often, and in what ways, are third party service providers
involved in the reporting and recordkeeping activities covered by this
control number? What are the costs associated with those products or
services? Are these distinct from, or included in, products or services
that facilitate casino and card club compliance with other AML/CFT
program requirements? If so, please describe.
(12) Do casinos conduct annual compliance training specifically
related to these requirements either modularly or as part of the annual
training requirements under their AML/CFT programs? If so, please
describe the time allotted to such training specific to these
recordkeeping requirements, the number or proportion of staff trained,
and the primary job titles or descriptions of staff that are trained.
Andrea M. Gacki,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2025-06938 Filed 4-22-25; 8:45 am]
BILLING CODE 4810-02-P