[Federal Register Volume 90, Number 235 (Wednesday, December 10, 2025)]
[Notices]
[Pages 57279-57284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-22425]
[[Page 57279]]
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DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request: Renewal Without Change of Information Collection
Requirements in Connection With the Imposition of Special Measures
AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.
ACTION: Notice and request for comments.
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SUMMARY: As part of a continuing effort to reduce paperwork and
respondent burden, FinCEN invites comments on a renewal, without
change, to information collection requirements found in Bank Secrecy
Act (BSA) regulations imposing the same special measures with respect
to several different entities of primary money laundering concern. This
request for comments is being made pursuant to the Paperwork Reduction
Act of 1995.
DATES: Written comments are welcome and must be received on or before
February 9, 2026.
ADDRESSES: Comments may be submitted by any of the following methods:
Federal E-rulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments. Refer to docket number
FINCEN-2025-0171 and the Office of Management and Budget (OMB) control
numbers 1506-0036, 1506-0071, 1506-0072, 1506-0074, and 1506-0079.
Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to docket number FINCEN-
2025-0171 and OMB control numbers 1506-0036, 1506-0071, 1506-0072,
1506-0074, and 1506-0079.
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. Do not include any personally
identifiable information (such as name, address, or other contact
information) or confidential business information that you do not want
publicly disclosed. All comments are public records; they are publicly
displayed exactly as received, and will not be deleted, modified, or
redacted. Comments may be submitted anonymously.
FOR FURTHER INFORMATION CONTACT: FinCEN's Regulatory Support Section at
www.fincen.gov/contact.
SUPPLEMENTARY INFORMATION:
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,\1\ as
amended by the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001 (USA PATRIOT Act),\2\ and other legislation, including the Anti-
Money Laundering Act of 2020 (AML Act).\3\ The BSA is codified at 12
U.S.C. 1829b and 1951-1960, and 31 U.S.C. 5311-5314 and 5316-5336, and
includes notes thereto, with implementing regulations at 31 CFR chapter
X.
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\1\ Title II of Public Law 91-508, 84 Stat. 1118 (Oct. 26,
1970).
\2\ Public Law 107-56, 115 Stat. 272 (Oct. 26, 2001).
\3\ 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).
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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, and regulatory matters, 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.\4\ The Secretary has delegated to the Director
of FinCEN the authority to administer the BSA.\5\
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\4\ See 31 U.S.C. 5311(1)-(2).
\5\ 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.'').
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Section 311 of the USA PATRIOT Act (Section 311), codified at 31
U.S.C. 5318A, grants FinCEN the authority--upon finding that reasonable
grounds exist for concluding that a foreign jurisdiction, financial
institution, class of transactions, or type of account is of ``primary
money laundering concern''--to require domestic financial institutions
and financial agencies to take one or more ``special measures.''
Special measures one through four, codified at 31 U.S.C.
5318A(b)(1)-(b)(4), impose additional recordkeeping, information
collection, and reporting requirements on covered financial
institutions. The fifth special measure, codified at 31 U.S.C.
5318A(b)(5), allows FinCEN to impose prohibitions or conditions on the
opening or maintenance of certain correspondent accounts. Special
measures are safeguards that protect the U.S. financial system from
money laundering and terrorist financing.
FinCEN has issued several final rules imposing the fifth special
measure to prohibit covered financial institutions from opening or
maintaining a correspondent account for, or on behalf of, specified
entities, of which five have associated OMB control numbers set to
expire within the current renewal cycle.\6\ FinCEN is renewing these
OMB control numbers jointly now for the sake of administrative
efficiency. The information collection requirements at issue pertain to
the following final rules:
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\6\ For a complete list of final rules imposing special measures
of any kind, see Special Measures [verbar] FinCEN.gov (https://www.fincen.gov/resources/statutes-and-regulations/special-measures).
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FinCEN issued a final rule on March 15, 2006, imposing the
fifth special measure to prohibit covered financial institutions from
opening or maintaining a correspondent account for, or on behalf of,
the Commercial Bank of Syria, including its subsidiary Syrian Lebanese
Commercial Bank (Syria).\7\
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\7\ FinCEN, Final Rule--Imposition of a Special Measure Against
Commercial Bank of Syria, Including its Subsidiary, Syrian Lebanese
Commercial Bank, as a Financial Institution of Primary Money
Laundering Concern, 71 FR 13260 (Mar. 15, 2006). While there are
certain exceptions to the applicability of this rule, FinCEN has not
assessed those to significantly affect the general aggregate burden
or the average burden presented in this notice that compliance with
special measures imposes. See FinCEN, Exception to Prohibition
Imposed by Section 311 of the USA PATRIOT Act against Commercial
Bank of Syria, (May 23, 2025) at https://www.fincen.gov/system/files/shared/Commercial-Bank-of-Syria-Exceptive-Relief.pdf.
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FinCEN issued a final rule on November 9, 2016, imposing
the fifth special measure to prohibit covered financial institutions
from opening or maintaining correspondent accounts for, or on behalf
of, North Korean banking institutions (DPRK).\8\
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\8\ FinCEN, Final Rule--Imposition of Special Measures Against
North Korea as a Jurisdiction of Primary Money Laundering Concern,
81 FR 78715 (Nov. 9, 2016).
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FinCEN issued a final rule on November 8, 2017, imposing
the fifth special measure to prohibit covered financial institutions
from opening or maintaining a correspondent account for, or on behalf
of, Bank of Dandong.\9\
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\9\ FinCEN, Final Rule--Imposition of Special Measure Against
Bank of Dandong as a Financial Institution of Primary Money
Laundering Concern, 82 FR 51758 (Nov. 8, 2017).
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FinCEN issued a final rule on November 4, 2019, imposing
the fifth special measure to prohibit covered financial institutions
from opening or
[[Page 57280]]
maintaining a correspondent account for, or on behalf of, Iranian
financial institutions (Iran).\10\
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\10\ FinCEN, Final Rule--Imposition of Fifth Special Measure
Against the Islamic Republic of Iran as a Jurisdiction of Primary
Money Laundering Concern, 84 FR 59302 (Nov. 4, 2019).
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FinCEN issued a final rule on July 3, 2024, imposing the
fifth special measure to prohibit covered financial institutions from
opening or maintaining a correspondent account for, or on behalf of,
Al-Huda Bank.\11\
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\11\ FinCEN, Final Rule--Imposition of Special Measure Regarding
Al-Huda Bank as a Financial Institution of Primary Money Laundering
Concern, 89 FR 55051 (Jul. 3, 2024).
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These rules require covered financial institutions to undertake due
diligence reasonably designed to guard against correspondent accounts
being used to process prohibited transactions involving one or more of
the entities listed above.\12\
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\12\ See 31 CFR 1010.653 (Syria), 1010.659 (DPRK), 1010.660
(Bank of Dandong), 1010.661 (Iran), and 1010.663 (Al-Huda Bank).
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Covered financial institutions are required to notify holders of
their foreign correspondent accounts that they may not provide the
above-listed entities with access to such accounts.\13\ The requirement
is intended to ensure cooperation from correspondent account holders in
denying illicit actors access to the U.S. financial system. Covered
financial institutions are required to document compliance with the
notification requirement.\14\ The records are used by federal agencies
and certain self-regulatory organizations to verify compliance with 31
CFR 1010.653, 1010.659, 1010.660, 1010.661, and 1010.663.
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\13\ See 31 CFR 1010.653(b)(2)(i)(A) (Syria),
1010.659(b)(3)(i)(A) (DPRK), 1010.660(b)(3)(i)(A) (Bank of Dandong),
1010.661(b)(3)(i)(A) (Iran), 1010.663(b)(3)(i)(A) (Al-Huda Bank).
\14\ See 31 CFR 1010.653(b)(3)(i) (Syria), 1010.659(b)(4)(i)
(DPRK), 1010.660(b)(4)(i) (Bank of Dandong), 1010.661(b)(4)(i)
(Iran), 1010.663(b)(4)(i) (Al-Huda Bank).
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II. Paperwork Reduction Act of 1995 (PRA) 15
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\15\ See 44 U.S.C. 3506(c)(2)(A).
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Title: Information Collection Requirements in Connection with the
Imposition of the Special Measures (31 CFR 1010.653, 1010.659,
1010.660, 1010.661, and 1010.663).
OMB Control Numbers: 1506-0036, 1506-0071, 1506-0072, 1506-0074,
1506-0079.
Form Number: Not applicable.
Abstract: FinCEN is issuing this notice to renew OMB control
numbers for regulations imposing the same special measures against
certain entities of primary money laundering concern pursuant to the
authority contained in 31 U.S.C. 5318A. See 31 CFR 1010.653, 31 CFR
1010.659, 31 CFR 1010.660, 31 CFR 1010.661, and 31 CFR 1010.663.
Affected Public: Businesses or other for-profit institutions, and
non-profit institutions.
Type of Review: Renewal without change of currently approved
information collections.
Frequency: As required.\16\
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\16\ As noted, covered financial institutions must notify
correspondent account holders that correspondent accounts may not be
used to provide specified institutions or jurisdictions access to
financial services, and must document their compliance with this
notice requirement. These requirements must be fulfilled, but with
no specified periodicity. See 31 CFR 1010.653(b)(2)(i)(A), (3)(i)
(Commercial Bank of Syria), 31 CFR 1010.659(b)(3)(i)(A), (4)(i)
(DPRK), 31 CFR 1010.660(b)(3)(i)(A), (4)(i) (Bank of Dandong), 31
CFR 1010.661(b)(3)(i)(A), (4)(i) (Iran), 31 CFR
1010.663(b)(3)(i)(A), (4)(i) (Al-Huda Bank).
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Estimated Number of Respondents: In this notice, and consistent
with other recent notices, FinCEN is updating how it estimates the
number of expected respondents to improve accuracy and consistency
across OMB control numbers.\17\ Previously, FinCEN assumed that all
covered financial institutions would bear the same recordkeeping burden
because it could not identify which institutions were likely to be
affected. Now, with improved analytical capacity, FinCEN can better
differentiate among institutions. As a result, FinCEN assigns varying
levels of burden that remain consistent with past population estimates
but are more precisely focused on the institutions most likely to incur
direct costs. FinCEN now distinguishes between all covered financial
institutions that could potentially be respondents and those it
actually expects to be respondents in a given year.
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\17\ See, e.g., FinCEN, Final Rule--Imposition of Special
Measure Regarding Huione Group as a Financial Institution of Primary
Money Laundering Concern, 90 FR 48295 (Oct. 16, 2025) (Huione Final
Rule); see also FinCEN, Agency Information Collection Activities;
Proposed Renewal; Comment Request; Renewal Without Change of
Prohibition on Correspondent Accounts for Foreign Shell Banks;
Records Concerning Owners of Foreign Banks and Agents for Service of
Legal Process, 90 FR 21987 (May 22, 2025) (Foreign Shell Bank
Renewal).
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Estimated Number of Potential Respondents: Approximately
15,710.\18\
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\18\ This estimate is informed by public and non-public data
sources regarding both an expected maximum number of entities that
may be affected and the number of active, or currently reporting,
registered financial institutions. The methodology used to derive
this estimate yields results comparable to the population estimates
in previous renewals: 16,588 (DPRK--87 FR 66776 (Nov. 4, 2022));
15,960 (Syria--88 FR 14442 (Mar. 8, 2023)); 15,960 (Iran--88 FR
14440 (Mar. 8, 2023)); 15,876 (Bank of Dandong--88 FR 48285 (Jul.
26, 2023)); and 15,180 (Al-Huda--89 FR 55051 (Jul. 3, 2024)).
Table 1--Estimates of Covered Financial Institutions by Type
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Number of
Financial institution type entities
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Banks with a federal functional regulator (FFR) \a\.. \b\ 8,995
Banks without an FFR \c\............................. \d\ 395
Broker-dealers in securities (broker-dealers) \e\.... \f\ 3,320
Open end mutual funds \g\............................ \h\ 2,036
Futures commission merchants \i\..................... \j\ 65
Introducing brokers in commodities \k\............... \l\ 899
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\a\ See 31 CFR 1010.100(t)(1); see also 31 CFR 1010.100(d).
\b\ Bank data is as of Jan. 17, 2025, from Federal Deposit Insurance
Corporation BankFind, https://banks.data.fdic.gov/bankfind-suite/bankfind bankfind. Credit union data is as of September 2024 from the National
Credit Union Administration Quarterly Data Summary Reports, https://ncua.gov/analysis/credit-union-corporate-call-report-data/quarterly-data-summary-reports.
\c\ 31 CFR 1020.210(b).
\d\ The Board of Governors of the Federal Reserve System Master Account
and Services Database contains data on financial institutions that
utilize Reserve Bank financial services, including those with no
federal regulator. FinCEN used this data to identify 395 banks and
credit unions utilizing Reserve Bank financial services with no
federal regulator. See Board of Governors of the Federal Reserve
System, Master Account and Services Database, https://www.federalreserve.gov/paymentsystems/master-account-and-services-database-existing-access.htm.
\e\ 31 CFR 1010.100(t)(2).
\f\ According to the Securities and Exchange Commission (SEC), there are
3,320 broker-dealers as of March 2025 from the website ``Company
Information About Active Broker-Dealers,'' https://www.sec.gov/foia-services/frequently-requested-documents/company-information-about-active-broker-dealers.
[[Page 57281]]
\g\ See 31 CFR 1010.100(t)(10); see also 31 CFR 1010.100(gg).
\h\ According to the SEC, in 2024 there were 2,036 open-end registered
investment companies that report on Form N-CEN. SEC, ``Form N-CEN Data
Sets,'' https://www.sec.gov/dera/data/form-ncen-data-sets.
\i\ 31 CFR 1010.100(t)(8).
\j\ According to the Commodity Futures Trading Commission (CFTC), there
are 65 futures commission merchants as of November 30, 2024. See CFTC,
``Financial Data for FCMs,'' https://www.cftc.gov/MarketReports/financialfcmdata/index.htm.
\k\ 31 CFR 1010.100(t)(9).
\l\ According to the National Futures Association (NFA), there are 899
introducing brokers in commodities as of Dec. 31, 2024 from website
``NFA Membership Totals,'' https://www.nfa.futures.org/registration-membership/membership-and-directories.html.
Estimated Number of Expected Respondents: Approximately 127.\19\
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\19\ While these regulations apply to all covered institutions
described in Table 1, in practice the burden will only fall on those
institutions that actually maintain correspondent accounts for
foreign banking institutions. Table 2 below presents an estimate of
this subpopulation of banks, brokers-dealers, mutual funds, futures
commission merchants, and introducing brokers in commodities based
on data from the most recent calendar year end.
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This notice departs from previous FinCEN practice in estimating the
PRA burden of compliance with special measures by qualifying that only
financial institutions that both (1) meet the definition of a ``covered
financial institution,'' \20\ and (2) appear to be engaged in
correspondent banking with, or processing transactions potentially
involving, the subjects of the special measures, are likely to be
affected. These are the expected respondents as detailed in Table 2.
The burden estimates in this notice do not include similar compliance
activities related to special measures that either did not require PRA
analysis or are not linked to the OMB control numbers covered here.
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\20\ See 31 CFR 1010.653(a)(3) for the definition of ``covered
financial institutions'' applicable to Syria. For all other special
measures covered in this notice, ``covered financial institutions''
are defined by cross-reference to 31 CFR 1010.605(e)(1). See 31 CFR
1010.659(a)(5) (DPRK); 1010.660(a)(3) (Bank of Dandong);
1010.661(a)(3) (Iran); and 1010.663(a)(3) (Al-Huda Bank).
Table 2--Estimates of Affected Financial Institutions by Type
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Number of
Financial institution type entities
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Banks with a FFR..................................... \a\ 60
Banks without a FFR.................................. \b\ 17
Broker-dealers....................................... \c\ 26
Open end mutual funds................................ \d\ 16
Futures commission merchants......................... \e\ 1
Introducing brokers in commodities................... \f\ 7
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\a\ Data are from the Federal Financial Institution Examination Council
Central Data Repository for Reports of Condition and Income (Call
Reports) and Uniform Bank Performance Reports (UBPRs), available for
most Federal Deposit Insurance Corporation-insured institutions. Using
this source of data, FinCEN determines that as of Q3 2024,
approximately 60 banks (as defined by FinCEN regulations, see 31 CFR
1010.100(d)) will be affected by the rules covered in this notice in
any given year. Specifically, as of Q3 2024, there were approximately
60 banks that reported non-zero values for deposit liabilities of
banks in foreign countries. Deposit liabilities in a foreign country
is an indication that a bank maintains correspondent accounts with a
foreign financial institution.
\b\ The Board of Governors of the Federal Reserve System Master Account
and Services Database contains data on financial institutions that
utilize Reserve Bank financial services, including those with no
federal regulator. FinCEN used this data to identify an additional 17
international banking entities with no federal regulator and that do
not file Call Reports, but that are also likely to maintain
correspondent accounts with a foreign financial institution.
\c\ Broker-dealers, unless they are publicly traded, are not required to
make reports indicating whether they have foreign correspondent
accounts or hold foreign deposits. FinCEN reviewed financial statement
data from 10-Q and 6-K filings with the SEC and identified nine
publicly traded broker-dealers with U.S. operations that reported
foreign deposits. FinCEN also examined suspicious activity reports
(SARs) filed by broker-dealers in 2024 to identify another two non-
publicly traded broker-dealers who appeared likely to be maintaining
foreign deposits. However, because many broker-dealers are not
publicly traded and did not file SARs, FinCEN conservatively estimates
that the proportion of broker-dealers with foreign correspondent
accounts will be similar to the proportion for banks (approximately
0.8%). 0.8% of 3,320 active broker-dealers is approximately 26 broker-
dealers assumed to have foreign correspondent accounts.
\d\ Mutual funds, futures commission merchants, and introducing brokers
in commodities generally use intermediary U.S. banks to move and
maintain client deposits and funds for investment. Therefore, it is
unlikely that many of these institutions will maintain direct
correspondent accounts with foreign financial institutions outside of
their existing upstream banking relationships. However, because these
institutions may in some cases receive deposits from, make payments or
other disbursements, or otherwise transact directly with foreign
financial institutions, FinCEN conservatively estimates that the
proportion of mutual funds with foreign correspondent accounts will be
similar to the proportion for banks (approximately 0.8%). 0.8% of
2,036 active mutual funds is approximately 16 mutual funds assumed to
have foreign correspondent accounts.
\e\ 0.8% of 65 active futures commission merchants is approximately one
futures commission merchant assumed to have foreign correspondent
accounts.
\f\ 0.8% of 899 active introducing brokers in commodities is
approximately seven introducing brokers in commodities assumed to have
foreign correspondent accounts.
Estimated Average Annual Recordkeeping Burden per Respondent: 19
minutes (approximately 0.32 hours).
Compliance with special measures that prohibit certain foreign
correspondent banking activities is expected to result in an
incremental recordkeeping burden that decreases over time and to only
accrue to the expected affected financial institutions listed in Table
2. Table 3 summarizes the more detailed discussion below, which
harmonizes FinCEN's presentation of expected PRA burdens associated
with newly imposed special measures \21\ and the revised recordkeeping
burden assignments FinCEN is proposing for the existing
[[Page 57282]]
regulations covered by this notice. The proposed changes in burden
assignment are intended to more accurately reflect how compliance with
special measures is operationalized by covered financial institutions
and how those costs are expected to attenuate after a special measure's
first year in effect.
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\21\ For purposes of this notice of OMB control number renewals,
``newly imposed special measures'' refers to measures that have not
yet been the subject of an OMB control number renewal, i.e., those
within their first three-year period following the publication of a
final rule. See, e.g., Huione Final Rule; see also proposed forecast
of PRA burden estimates for effective years one through three in
FinCEN, Proposal of Special Measure Regarding Transactions Involving
Ten Mexican Gambling Establishments as a Class of Transactions of
Primary Money Laundering Concern, 90 FR 51234 (Nov. 17, 2025)
(Mexican Casinos NPRM).
Table 3--Expected Burden Hours per 311 Special Measure per Respondent by Effective Year
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Recordkeeping activity Burden hours in 311 effective year
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Type Description 1 2 3 4+
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A. General....................... Documenting steps taken 8 0 \a\
to ensure no
transactions are
processed.
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B. Notification.................. Notifying foreign 0.25 0.05 0.05
correspondent account
holders and documenting
notification.
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C. Process and Governance........ Documenting or 0 \a\
maintaining
documentation
associated with
additional due
diligence.
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\a\ The incremental recordkeeping activities associated with A and C in subsequent years are expected to be
incorporated into activities that satisfy broader foreign correspondent account related due diligence
requirements already accounted for under OMB control number 1506-0046. The continuing time burden here is
therefore set to zero to avoid double counting, which would overestimate the aggregate recordkeeping burden
across OMB control numbers.
In general, FinCEN expects compliance with prohibitions imposed
under the fifth special measure to involve recordkeeping activities in
the following three categories:
A. ``General'' includes refusing to open or maintain accounts,
terminating accounts, investigative activity, and documenting steps
undertaken to ensure no transactions involving the subject of a special
measure are processed.\22\
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\22\ See 31 CFR 1010.653(b)(1) (Syria), 1010.659(b)(1)-(2)
(DPRK), 1010.660(b)(2) (Bank of Dandong), 1010.661(b)(1)-(2) (Iran),
and 1010.663(b)(1)-(2) (Al-Huda Bank).
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B. ``Notification'' includes notifying foreign correspondent
account holders when an entity is the subject of an effective special
measure, and documenting provision of notice.23 24
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\23\ Each affected covered financial institution is required to
notify foreign correspondent account holders that it knows, or has
reason to believe, provide services to any of the entities of
primary money laundering concern that such correspondents may not
provide those entities with financial access to a correspondent
account.
\24\ See 31 CFR 1010.653(b)(2)(i)(A), (3)(i) (Syria);
1010.659(b)(3)(i)(A), (4)(i) (DPRK); 1010.660(b)(3)(i)(A), (4)(i)
(Bank of Dandong); 1010.661(b)(3)(i)(A), (4)(i) (Iran); and
1010.663(b)(3)(i)(A), (4)(i) (Al-Huda Bank).
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C. ``Process and Governance'' include documenting the steps
considered or undertaken with respect to further due diligence. This
documentation may include, but is not limited to, the reasoning that
informed decisions to adopt (or not adopt) new measures that add to a
covered financial institution's existing risk-based approach, and those
new measures, if adopted.\25\
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\25\ See 31 CFR 1010.653(b)(2)(i)(B), (ii-iv) (Syria),
1010.659(b)(3)(i)(B), (ii), (iii) (DPRK), 1010.660(b)(3)(i)(B),
(ii), (iii) (Bank of Dandong), 1010.661(b)(3)(i)(B), (ii), (iii)6
(Iran), and 1010.663(b)(3)(i)(B), (ii), (iii) (Al-Huda Bank).
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Because the first Section 311 special measures were implemented
over two decades ago, FinCEN expects that affected covered financial
institutions already have the wherewithal to comply when FinCEN imposes
special measures on new parties.\26\ To the extent FinCEN imposing
special measures on new parties requires covered financial institutions
to implement new compliance measures, FinCEN expects that
implementation process to occur within the first year following the
publication of a final rule. FinCEN expects affected financial
institutions to spend no more than an average of eight hours (one
business day) on related recordkeeping activities in that first year.
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\26\ The first regulations implementing Section 311 special
measures went into effect in 2004. See FinCEN, Imposition of Special
Measures Against Myanmar Mayflower Bank and Asia Wealth Bank as
Financial Institutions of Primary Money Laundering Concern, 69 FR
19098 (Apr. 12, 2004); and FinCEN, Imposition of Special Measures
Against Burma, 69 FR 19093 (Apr. 12, 2004).
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In all subsequent years, FinCEN expects the average annual burden
associated with the collection of information to drop significantly.
For ``General'' and ``Process and Governance'' recordkeeping, FinCEN
anticipates that any ongoing updates will be part of financial
institutions' regular compliance work for maintaining correspondent
accounts.\27\ These recordkeeping efforts are therefore already
accounted for as part of the activities covered under OMB control
number 1506-0046, which pertains to due diligence programs for foreign
correspondent accounts.\28\ Consequently, FinCEN is not assigning any
additional PRA burden associated with ``General'' or ``Process and
Governance'' recordkeeping activities as part of the OMB control number
renewals covered by this notice.
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\27\ See 31 CFR 1010.610 and 630; see also 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 (Jun. 11, 2024) (Correspondent
Banking Renewal).
\28\ See Correspondent Banking Renewal. The PRA burden, as
assigned in that renewal to expected respondents is equivalent to an
annual average of approximately 256 burden hours per financial
institution affected by both the regulations under that notice and
this one.
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FinCEN assesses that most of the incremental PRA burden of ongoing
compliance with the imposition of special measures comes from
``Notification'' activities. In these cases, covered financial
institutions must inform new account holders about entities subject to
the fifth special measure and ensure the account holders agree not to
conduct transactions for subject parties. FinCEN has previously
estimated that financial institutions that maintain foreign
correspondent accounts open an average of ten new foreign correspondent
accounts per year \29\ and generally expects the time burden of special
measure compliance associated with these new accounts not to exceed an
average of 15 minutes (0.25 hours) per affected financial
institution.\30\ Because this notice pertains to special measures that
are well past their first year of imposition, FinCEN anticipates that
covered financial institutions would have had sufficient time to
consolidate the various subjects into a single notification provided to
foreign correspondent account holders at the time of account opening.
For this
[[Page 57283]]
reason, FinCEN's model of recordkeeping burden estimates assigns a
lower time value to ``Notification'' activities under each individual
OMB control number's PRA burden in years four and thereafter.\31\
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\29\ See Foreign Shell Bank Renewal at 90 FR 21994.
\30\ See Huione Final Rule; see also Mexican Casinos NPRM.
\31\ See Table 3.
Table 4--Three-Year Average Expected Burden Hours for Each Special Measure in Notice
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Calendar year
OMB control No. and subject Burden hour by number --------------------------------------- 3-Year average
of years effective 2026 2027 2028 burden hours
----------------------------------------------------------------------------------------------------------------
1506-0079; Al-Huda Bank........... Effective Year....... 3 4 5 0.117
Burden Hour.......... 0.25 0.05 0.05
1506-0074; Iran................... Effective Year....... 8 9 10 0.050
Burden Hour.......... 0.05 0.05 0.05
1506-0072; Bank of Dandong........ Effective Year....... 10 11 12 0.050
Burden Hour.......... 0.05 0.05 0.05
1506-0071; DPRK................... Effective Year....... 11 12 13 0.050
Burden Hour.......... 0.05 0.05 0.05
1506-0036; Syria.................. Effective Year....... 21 22 23 0.050
Burden Hour.......... 0.05 0.05 0.05
----------------------------------------------------------------------------------------------------------------
To estimate the PRA burden per affected financial institution
covered in this notice, FinCEN sums recordkeeping burden over the five
control numbers as summarized in Table 5.
Table 5--Burden Hours per Respondent per Year
----------------------------------------------------------------------------------------------------------------
Calendar year
OMB control No. and subject -----------------------------------------------
2026 2027 2028
----------------------------------------------------------------------------------------------------------------
1506-0079; Al-Huda Bank......................................... 0.25 0.05 0.05
1506-0074; Iran................................................. 0.05 0.05 0.05
1506-0072; Bank of Dandong...................................... 0.05 0.05 0.05
1506-0071; DPRK................................................. 0.05 0.05 0.05
1506-0036; Syria................................................ 0.05 0.05 0.05
-----------------------------------------------
Total Burden Hours.......................................... 0.45 0.25 0.25
----------------------------------------------------------------------------------------------------------------
Estimated Total Annual Recordkeeping Burden: approximately 40
hours, on average.\32\
---------------------------------------------------------------------------
\32\ This estimate represents the three-year average burden
hours from Table 5, applied to an estimated population of 127
respondents annually, rounded to the nearest whole hour.
Table 6--Total Annual Recordkeeping Burden Hours
----------------------------------------------------------------------------------------------------------------
Total burden Number of
Year hours per expected Total annual
respondent respondents burden hours
----------------------------------------------------------------------------------------------------------------
2026................................................... 0.45 127 57.15
2027................................................... 0.25 ................. 31.75
2028................................................... 0.25 ................. 31.75
----------------------------------------------------------------------------------------------------------------
Average.................................................................................. 40.22
----------------------------------------------------------------------------------------------------------------
Estimated Total Annual Recordkeeping Cost: $4,828.80, on average.
Table 7--Estimated Total Cost of Annual PRA Burden
----------------------------------------------------------------------------------------------------------------
Number of Average total
OMB control No. Subject of 311 expected annual burden Total cost per
respondents hours \a\ regulation \b\
----------------------------------------------------------------------------------------------------------------
1506-0079........................ Al-Huda Bank........ 127 14.82 $1,779.04
1506-0074........................ Iran................ ................. 6.35 762.44
1506-0072........................ Bank of Dandong..... ................. 6.35 762.44
[[Page 57284]]
1506-0071........................ North Korea......... ................. 6.35 762.44
1506-0036........................ Syria............... ................. 6.35 762.44
----------------------------------------------------------------------------------------------------------------
Total PRA Burden Hours and Cost....................................... 40.22 4,828.80
----------------------------------------------------------------------------------------------------------------
\a\ Values are calculated using the three-year average estimate of annual burden hours per respondent multiplied
by the number of expected respondents, rounded to nearest hundredth hour. See Table 4.
\b\ FinCEN applies a standard hourly compensation rate of $120.07 based on the average hourly cost of labor
required to complete BSA-related compliance tasks at financial institutions. See Foreign Shell Bank Renewal at
90 FR 21996.
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.
General Request for Comments: Comments submitted in response to
this notice will be summarized or included in a request for OMB
approval. All comments will become a matter of public record. 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 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, cost of
operation and maintenance, and cost involved in purchasing services.
III. Additional Requests for Comment
In connection with a variety of initiatives FinCEN is undertaking
to implement the AML Act, FinCEN intends to conduct additional
assessments of the PRA burden associated with BSA requirements. To
assist with those activities, FinCEN is requesting comments in response
to the following additional questions:
1. Because FinCEN cannot directly ascertain the number of covered
financial institutions that maintain foreign correspondent accounts at
any given time, it relies on the methodology described above to
estimate the number of expected respondents per year. Are there
alternative information sources or approaches that would provide more
accurate estimates? If feasible, please provide specific references or
descriptions.
2. Are FinCEN's assumptions about how and when expected respondents
provide requisite notifications to foreign correspondent account
holders consistent with common market practices? If not, are
differences in practice significant enough to warrant revised burden
and cost estimates? If so, please provide information to support such
revision information.
3. The estimates in this notice do not include an itemized cost for
technology. Are the incremental costs of third-party technology
services or software used to comply with special measures and to
document such compliance identifiable and substantial enough that an
additional, separate cost estimate is appropriate? If so, please
provide information to support general estimation.
4. The estimates in this notice do not include an itemized cost for
data storage. Are the incremental costs of technology used to
communicate, record, and store the materials necessary to comply with
special measures identifiable and substantial enough that an
additional, separate cost estimate is appropriate? If so, please
provide information to support general estimation.
Andrea M. Gacki,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2025-22425 Filed 12-9-25; 8:45 am]
BILLING CODE 4810-02-P