80 FR 42607 - Proposed Renewal Without Change; Comment Request; Customer Identification Programs for Various Financial Institutions
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network Federal Register Volume 80, Issue 137 (July 17, 2015)
Financial Crimes Enforcement Network
Federal Register Volume 80, Issue 137 (July 17, 2015)
| Page Range | 42607-42609 | |
| FR Document | 2015-17625 |
[Federal Register Volume 80, Number 137 (Friday, July 17, 2015)] [Notices] [Pages 42607-42609] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-17625] ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Financial Crimes Enforcement Network Proposed Renewal Without Change; Comment Request; Customer Identification Programs for Various Financial Institutions AGENCY: Financial Crimes Enforcement Network (``FinCEN''), Treasury. ACTION: Notice and request for comments. ----------------------------------------------------------------------- [[Page 42608]] SUMMARY: As part of its continuing effort to reduce paperwork and respondent burden, FinCEN invites comment on a proposed renewal, without change, to information collections found in regulations requiring futures commission merchants, introducing brokers, banks, savings associations, credit unions, certain non-federally regulated banks, mutual funds, and broker-dealers, to develop and implement customer identification programs reasonably designed to prevent those financial institutions from being used to facilitate money laundering and the financing of terrorist activities. This request for comment is being made pursuant to the Paperwork Reduction Act of 1995, Public Law 104-13, 44 U.S.C. 3506(c)(2)(A). DATES: Written comments are welcome and must be received on or before September 15, 2015. ADDRESSES: Written comments should be submitted to: Policy Division, Financial Crimes Enforcement Network, Department of the Treasury, P.O. Box 39, Vienna, VA 22183, Attention: Customer Identification Program Comments. Comments also may be submitted by electronic mail to the following Internet address: [email protected], again with a caption, in the body of the text, ``Attention: Customer Identification Program Comments.'' Inspection of comments: Persons wishing to inspect the comments submitted must request an appointment with the Disclosure Officer by telephoning (703) 905-5034 (Not a toll free call). FOR FURTHER INFORMATION CONTACT: FinCEN Resource Center at 1-800-767- 2825 or 1-703-905-3591 (not a toll free number) and select option 3 for regulatory questions. Email inquiries can be sent to [email protected]. SUPPLEMENTARY INFORMATION: Abstract: FinCEN exercises regulatory functions primarily under the Currency and Financial Transactions Reporting Act of 1970, as amended by the USA PATRIOT Act of 2001 and other legislation. This legislative framework is commonly referred to as the ``Bank Secrecy Act'' (``BSA'').\1\ The Secretary of the Treasury has delegated to the Director of FinCEN the authority to implement, administer and enforce compliance with the BSA and associated regulations.\2\ Pursuant to this authority, FinCEN may issue regulations requiring financial institutions to keep records and file reports that ``have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, or in the conduct of intelligence or counterintelligence activities, including analysis, to protect against international terrorism'' \3\ Additionally, FinCEN is authorized to impose regulations to maintain procedures to ensure compliance with the BSA and FinCEN's implementing regulations, or to guard against money laundering, which includes imposing anti-money laundering (``AML'') program requirements on financial institutions.\4\ --------------------------------------------------------------------------- \1\ The BSA is codified at 12 U.S.C. 1829b, 12 U.S.C. 1951-1959, 31 U.S.C. 5311-5314 and 5316-5332 and notes thereto, with implementing regulations at 31 CFR Chapter X. See 31 CFR 1010.100(e). \2\ Treasury Order 180-01 (Jul. 1, 2014). \3\ 31 U.S.C. 5311. \4\ 31 U.S.C. 5318(a) and (h). --------------------------------------------------------------------------- Section 5318(l) of the BSA authorizes FinCEN to issue regulations prescribing customer identification programs for financial institutions. The regulations must require that, at a minimum, financial institutions implement reasonable procedures for (1) verifying the identity of any person seeking to open an account, to the extent reasonable and practicable; (2) maintaining records of the information used to verify the person's identity, including name, address, and other identifying information; and (3) determining whether the person appears on any lists of known or suspected terrorists or terrorist organizations provided to the financial institution by any government agency. The regulations are to take into consideration the various types of accounts maintained by various types of financial institutions, the various methods of opening accounts, and the various types of identifying information available. Regulations implementing section 5318(l) are found at 31 CFR 1020.220, 1023.220, 1026.220, and 1024.220. 1. Title: Customer identification programs for banks, savings associations, credit unions, and certain non-federally regulated banks. (31 CFR 1020.220). Office of Management and Budget Control Number (OMB): 1506-0026. Abstract: Banks, savings associations, credit unions, and certain non-federally regulated banks are required to develop and maintain customer identification programs and provide their customers with notice of the programs. (See FR 68, 25090, May 9, 2003). Current Action: There is no change to existing regulations. Type of Review: Extension of a currently approved information collection. Affected Public: Business and other for-profit institutions and non-profit institutions. Burden: Estimated Number of Respondents 22,060. Estimated average annual recordkeeping burden per respondent: 10 hours. Estimated average annual disclosure burden per respondent: 1 hour. Estimated Total Annual Respondent Burden: 242,660 hours. 2. Title: Customer identification program for broker-dealers (31 CFR 1023.220). OMB Control Number: 1506-0034. Abstract: Broker-dealers are required to establish and maintain customer identification programs and provide their customers with notice of the programs. (See FR 68, 25113, May 9, 2003). Current Action: There is no change to existing regulations. Type of Review: Extension of a currently approved information collection. Affected Public: Business and other for profit institutions. Burden: Estimated Number of Respondents 5,448. Estimated Average Annual Burden per Respondent: The estimated average burden associated with the notice requirement is two minutes per respondent. FinCEN estimates 18,926,880 responses. Estimated Number of Hours: 630,896. 3. Title: Customer identification programs for futures commission merchants and introducing brokers (31 CFR 1026.220). OMB Control Number: 1506-0022. Abstract: Futures commission merchants and introducing brokers are required to develop and maintain customer identification programs and provide their customers with notice of the programs. (See FR 68, 25149, May 9, 2003). Current Action: There is no change to existing regulations. Type of Review: Extension of a currently approved information collection. Affected Public: Business and other for profit institutions. Burden: Estimated Number of Respondents: 1856. (Recordkeeping average of 10 hours per customer; Explanation of program average of 1 hour per response). Estimated Number of Hours: 20,416. 4. Title: Customer identification programs for mutual funds (31 CFR 1024.220). OMB Control Number: 1505-0033. Abstract: Mutual funds are required to establish and maintain customer [[Page 42609]] identification programs and provide their customers with notice of the programs. (See FR 68, 25131, May 9, 2003). Current Action: There is no change to existing regulations. Type of Review: Extension of a currently approved information collection. Affected Public: Business and other for profit institutions. Burden: Estimated Number of Respondents: 2,296. Estimated Average Annual Burden per Respondent: The estimated average burden associated with the notice requirement is 2 minutes per respondent. FinCEN estimates 8,001,000 responses. Estimated Number of Hours: 266,700. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by the Office of Management and Budget. Records required to be retained under the BSA must be retained for five years. Generally, information collected pursuant to the BSA is confidential but may be shared as provided by law with regulatory and law enforcement authorities. Request for Comments: Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency's estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected: (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance and purchase of services to provide information. Dated: July 13, 2015. Jennifer Shasky Calvery, Director, Financial Crimes Enforcement Network. [FR Doc. 2015-17625 Filed 7-16-15; 8:45 am] BILLING CODE 4810-02-P
![Federal Register / Vol. 80, No. 137 / Friday, July 17, 2015 / Notices 42607
(‘‘FinCEN’’), U.S. Department of the check includes (i) a U.S. Treasury check C. No Effect on Other Provisions of the
Treasury, issued on July 13, 2015 a used to pay a tax refund, or (ii) a check Bank Secrecy Act
Geographic Targeting Order (‘‘Order’’) issued by a third party in connection Nothing in this Order modifies or
requiring check cashers located in two with an anticipated Federal tax refund otherwise affects any provision of the
South Florida counties to obtain and (e.g., a Refund Anticipation Loan regulations implementing the Bank
record identifying information about check). Secrecy Act to the extent not expressly
persons cashing Federal tax refund stated herein.
B. Records Required To Be Obtained by
checks in excess of $1,000, as further
a Covered Business When Engaging in a D. Compliance
described in the Order.
Covered Transaction
DATES: This Notice is effective on July A Covered Business must supervise,
17, 2015. If a Covered Business engages in a and is responsible for, compliance by
FOR FURTHER INFORMATION CONTACT: All Covered Transaction, the Covered each of its officers, directors, and
questions about the Order must be Business must obtain at the time of the employees with the terms of this Order.
addressed to the FinCEN Resource Covered Transaction and record the A Covered Business must transmit the
Center at (800) 767–2825 (Monday following identifying information about Order to its Chief Executive Officer or
through Friday, 8:00 a.m.–6:00 p.m. the customer conducting the other similarly acting manager.
EST). transaction: E. Penalties for Noncompliance
SUPPLEMENTARY INFORMATION: The (i) A copy of the customer’s valid
A Covered Business and any of its
Geographic Targeting Order is government-issued identification, which
officers, directors, employees, or agents
published as an attachment to this must evidence nationality or residence,
may be liable, without limitation, for
notice. include a photograph of the customer, civil and/or criminal penalties for
and be issued in the same name as that violating any of the terms of this Order.
Jennifer Shasky Calvery, of the original payee of the check; 2
Director, Financial Crimes Enforcement (ii) a clear digital photograph of the F. Validity of Order
Network, U.S. Department of Treasury. customer taken at the time of the Any judicial determination that any
Geographic Targeting Order Covered Transaction that matches the provision of this Order is invalid does
photograph depicted on the not affect the validity of any other
I. Authority identification provided by the provision of this Order, and each other
The Director of FinCEN may issue an customer; 3 provision must thereafter remain in full
order that imposes certain additional (iii) the customer’s phone number; force and effect. A copy of this Order
recordkeeping and reporting and carries the full force and effect of an
requirements on one or more domestic original signed Order.
(iv) a clear original thumbprint of the
financial institutions or nonfinancial
customer that is recorded on the check. G. Paperwork Reduction Act
trades or businesses in a geographic
area. See 31 U.S.C. 5326(a); 31 CFR C. Retention of Records The collection of information subject
1010.370; Treasury Order 180–01. to the Paperwork Reduction Act
Pursuant to this authority, the Director A Covered Business must: (i) Retain contained in this Order has been
of FinCEN hereby finds that reasonable all records relating to compliance with approved by the Office of Management
grounds exist for concluding that the this Order for a period of five years from and Budget (‘‘OMB’’) and assigned OMB
additional recordkeeping requirements the last day that this Order is effective Control Number 1506–0056.
described below are necessary to carry (including any renewals of this Order);
(ii) store such records in a manner H. Questions
out the purposes of the Bank Secrecy
Act and prevent evasions thereof.1 accessible within a reasonable period of All questions about the Order must be
time; and (iii) make such records addressed to the FinCEN Resource
II. Additional Recordkeeping available to FinCEN or any other Center at (800) 767–2825 (Monday
Requirements appropriate law enforcement or through Friday, 8:00 a.m.–6:00 p.m.
A. Check Cashers and Transactions regulatory agency, upon request. EST).
Covered by This Order III. General Provisions Dated: July 8, 2015.
For purposes of this Order, a Jennifer Shasky Calvery,
A. Definitions
‘‘Covered Business’’ means a check Director, Financial Crimes Enforcement
casher, as defined under 31 CFR All terms used but not otherwise Network, U.S. Department of the Treasury.
1010.100(ff)(2), that maintains a location defined herein have the meaning set [FR Doc. 2015–17572 Filed 7–16–15; 8:45 am]
(including a branch or agent location) in forth in Chapter X of Title 31 of the BILLING CODE 4810–02–P
one of the following counties in the United States Code of Federal
State of Florida: Miami-Dade County or Regulations.
Broward County (the ‘‘Covered DEPARTMENT OF THE TREASURY
B. Order Period
Geographic Area’’). Financial Crimes Enforcement Network
For purposes of this Order, a The terms of this Order are effective
‘‘Covered Transaction’’ means any beginning on August 3, 2015 and ending Proposed Renewal Without Change;
transaction in which a Covered Business on January 30, 2016 (except as Comment Request; Customer
srobinson on DSK5SPTVN1PROD with NOTICES
cashes a Federal tax refund check in otherwise provided in Section II(C) Identification Programs for Various
excess of $1,000 within the Covered above). Financial Institutions
Geographic Area. A Federal tax refund
2 For example, a driver’s license or passport are AGENCY: Financial Crimes Enforcement
1 The Bank Secrecy Act is codified at 12 U.S.C. acceptable forms of identification. Network (‘‘FinCEN’’), Treasury.
1829b, 1951–1959 and 31 U.S.C. 5311–5314, 5316– 3 An image captured by a surveillance video is
ACTION: Notice and request for
5332. Regulations implementing the Bank Secrecy not sufficient to satisfy this photograph comments.
Act appear at 31 CFR Chapter X. requirement.
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![Federal Register / Vol. 80, No. 137 / Friday, July 17, 2015 / Notices 42609
identification programs and provide DEPARTMENT OF THE TREASURY Form Number: FinCEN Form 105.
their customers with notice of the Abstract: FinCEN exercises regulatory
programs. (See FR 68, 25131, May 9, Financial Crimes Enforcement Network functions primarily under the Currency
2003). and Financial Transactions Reporting
Agency Information Collection Act of 1970, as amended by the USA
Current Action: There is no change to Activities; Proposed Collection;
existing regulations. PATRIOT Act of 2001 and other
Comment Request; Report of legislation. This legislative framework is
Type of Review: Extension of a International Transportation of commonly referred to as the ‘‘Bank
currently approved information Currency or Monetary Instruments Secrecy Act’’ (‘‘BSA’’).1 The Secretary of
collection. AGENCY: Financial Crimes Enforcement the Treasury has delegated to the
Affected Public: Business and other Network (‘‘FinCEN’’), Treasury. Director of FinCEN the authority to
for profit institutions. ACTION: Notice and request for implement, administer and enforce
comments regarding the renewal compliance with the BSA and
Burden: Estimated Number of
without change of the Report of associated regulations.2 Pursuant to this
Respondents: 2,296. authority, FinCEN may issue regulations
International Transportation of
Estimated Average Annual Burden Currency or Monetary Instruments requiring financial institutions to keep
per Respondent: The estimated average (‘‘CMIR’’). records and file reports that ‘‘have a
burden associated with the notice high degree of usefulness in criminal,
requirement is 2 minutes per SUMMARY: As part of our continuing tax, or regulatory investigations or
respondent. FinCEN estimates 8,001,000 effort to reduce paperwork and proceedings, or in the conduct of
responses. respondent burden, FinCEN invites the intelligence or counterintelligence
general public and other Federal activities, including analysis, to protect
Estimated Number of Hours: 266,700.
agencies to comment on an information against international terrorism.’’ 3
An agency may not conduct or collection requirement concerning the Additionally, FinCEN is authorized to
sponsor, and a person is not required to CMIR. This request for comment is impose regulations to maintain
respond to, a collection of information being made pursuant to the Paperwork procedures to ensure compliance with
unless it displays a valid control Reduction Act of 1995 (‘‘PRA’’), Public the BSA and FinCEN’s implementing
number assigned by the Office of Law 10 U.S.C. 3506(c)(2)(A)). regulations, or to guard against money
Management and Budget. Records DATES: Written comments should be laundering, which includes imposing
required to be retained under the BSA received on or before September 15, anti-money laundering (‘‘AML’’)
must be retained for five years. 2015 to be assured of consideration. program requirements on financial
Generally, information collected ADDRESSES: Direct all written comments institutions.4
pursuant to the BSA is confidential but to: Policy Division, Financial Crimes Pursuant to the BSA, the requirement
may be shared as provided by law with Enforcement Network, Department of of 31 U.S.C. 5316(a) has been
regulatory and law enforcement the Treasury, P.O. Box 39, Vienna, VA implemented through regulations
authorities. 22183–0039, Attention: PRA promulgated at 31 CFR 1010.340 and
Comments—Report of International through the instructions for the CMIR as
Request for Comments: Comments
Transportation of Currency or Monetary follows:
submitted in response to this notice will
Instruments. Comments also may be (1) Each person who physically
be summarized and/or included in the
submitted by electronic mail to the transports, mails, or ships, or causes to
request for OMB approval. All
following Internet address: be physically transported, mailed, or
comments will become a matter of
‘‘regcomments@fincen.gov’’ with the shipped currency or other monetary
public record. Comments are invited on: instruments in an aggregate amount
caption in the body of the text,
(a) Whether the collection of exceeding $10,000 at one time from the
‘‘Attention: PRA Comments—Report of
information is necessary for the proper United States to any place outside the
International Transportation of
performance of the functions of the Currency or Monetary Instruments.’’ United States or into the United States
agency, including whether the Inspection of comments: Persons from any place outside the United
information shall have practical utility; wishing to inspect the comments States, and
(b) the accuracy of the agency’s estimate submitted must request an appointment (2) Each person who receives in the
of the burden of the collection of with the Disclosure Officer by United States currency or other
information; (c) ways to enhance the telephoning (703) 905–5034 (Not a toll monetary instruments in an aggregate
quality, utility, and clarity of the free call). amount exceeding $10,000 at one time
information to be collected: (d) ways to FOR FURTHER INFORMATION CONTACT: which have been transported, mailed, or
minimize the burden of the collection of FinCEN Resource Center at 1–800–767– shipped to the person from any place
information on respondents, including 2825 or 1–703–905–3591 (not a toll free outside the United States. A transfer of
through the use of automated collection number) and select option 3 for funds through normal banking
techniques or other forms of information regulatory questions. Email inquiries procedures, which does not involve the
technology; and (e) estimates of capital can be sent to FRC@fincen.gov. physical transportation of currency or
or start-up costs and costs of operation, A copy of the form may also be monetary instruments, is not required to
maintenance and purchase of services to obtained from the FinCEN Web site at be reported on the CMIR.
provide information. http://www.fincen.gov/forms/files/
srobinson on DSK5SPTVN1PROD with NOTICES
Dated: July 13, 2015.
fin105_cmir.pdf. 1 The BSA is codified at 12 U.S.C. 1829b, 12
SUPPLEMENTARY INFORMATION: U.S.C. 1951–1959, 31 U.S.C. 5311–5314 and 5316–
Jennifer Shasky Calvery, 5332 and notes thereto, with implementing
Title: Report of International regulations at 31 CFR Chapter X. See 31 CFR
Director, Financial Crimes Enforcement Transportation of Currency or Monetary 1010.100(e).
Network. Instruments (CMIR). 2 Treasury Order 180–01 (Jul. 1, 2014).
[FR Doc. 2015–17625 Filed 7–16–15; 8:45 am] Office of Management and Budget 3 31 U.S.C. 5311.
BILLING CODE 4810–02–P Number (‘‘OMB’’): 1506–0014. 4 31 U.S.C. 5318(a) and (h).
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Document Created: 2018-02-23 09:21:51
Document Modified: 2018-02-23 09:21:51
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice and request for comments. | |
| Dates | Written comments are welcome and must be received on or before September 15, 2015. | |
| Contact | FinCEN Resource Center at 1-800-767- 2825 or 1-703-905-3591 (not a toll free number) and select option 3 for regulatory questions. Email inquiries can be sent to [email protected] | |
| FR Citation | 80 FR 42607 |
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