83 FR 42555 - Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Recordkeeping and Termination of Correspondent Accounts for Foreign Banks

DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network

Federal Register Volume 83, Issue 163 (August 22, 2018)

FinCEN invites comment on the renewal of information collections in existing regulations requiring records concerning owners of foreign banks and agents of foreign banks for service of legal process.

[Federal Register Volume 83, Number 163 (Wednesday, August 22, 2018)]
[Notices]
[Pages 42555-42556]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-18079]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Agency Information Collection Activities; Proposed Renewal; 
Comment Request; Renewal Without Change of Recordkeeping and 
Termination of Correspondent Accounts for Foreign Banks

AGENCY: Financial Crimes Enforcement Network (``FinCEN''), U.S. 
Department of the Treasury.

ACTION: Notice and request for comments.

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SUMMARY: FinCEN invites comment on the renewal of information 
collections in existing regulations requiring records concerning owners 
of foreign banks and agents of foreign banks for service of legal 
process.

DATES: Written comments are welcome and must be received on or before 
October 22, 2018.

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-2018-0011 and the Office of Management and Budget (``OMB'') 
control number 1506-0043.
     Mail: Policy Division, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2018-0011 and OMB control number 1506-0043.
    Please submit comments by one method only. Comments will also be 
incorporated to FinCEN's retrospective regulatory review process, as 
mandated by E.O. 12866 and 13563. 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: The FinCEN Resource Center at 800-767-
2825 or electronically at [email protected].

SUPPLEMENTARY INFORMATION: The Bank Secrecy Act (``BSA''), Titles I and 
II of Public Law 91-508, as amended, codified at 12 U.S.C. 1829(b), 12 
U.S.C. 1951-1959, and 31 U.S.C. et seq., authorizes the Secretary of 
the Treasury, among other things, to 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 or in the 
conduct of intelligence or counter-intelligence activities to protect 
against international terrorism, and to implement counter-money 
laundering

[[Page 42556]]

programs and compliance procedures.\1\ Title III of the USA PATRIOT Act 
of 2001, Public Law 107-56, included certain amendments to the anti-
money laundering provisions of Title II of the BSA, 31 U.S.C. 5311 et 
seq., which are intended to aid in the prevention, detection, and 
prosecution of international money laundering and terrorist financing.
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    \1\ Language expanding the scope of the BSA to intelligence or 
counter-intelligence activities to protect against international 
terrorism was added by Section 358 of the Uniting and Strengthening 
America by Providing Appropriate Tools Required to Intercept and 
Obstruct Terrorism Act of 2001, Public Law 107-56.
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    Regulations implementing Title II of the BSA appear at 31 CFR 
Chapter X. The authority of the Secretary of the Treasury to administer 
Title II of the BSA has been delegated to the Director of FinCEN. The 
information collected and retained under the regulation addressed in 
this notice assists Federal, state, and local law enforcement as well 
as regulatory authorities in the identification, investigation and 
prosecution of money laundering and other matters.
    This request for comments is being made pursuant to the Paperwork 
Reduction Act (``PRA'') of 1995, Public Law 104-13, 44 U.S.C. 
3506(c)(2)(A). In accordance with the requirements of the PRA and its 
implementing regulations, the following information is presented 
concerning the information collection below.
    Title: Correspondent Accounts for Foreign Shell Banks; 
Recordkeeping and Termination of Correspondent Accounts for Foreign 
Banks (31 CFR 1010.630).
    OMB Control Number: 1506-0043.
    Abstract: Covered financial institutions are prohibited from 
maintaining correspondent accounts for foreign shell banks (31 CFR 
1010.630(a)(1)). Covered financial institutions that maintain 
correspondent accounts for foreign banks must maintain records of 
owner(s) of the foreign bank and the name and address of a person 
residing in the United States who is authorized to accept service of 
legal process for the foreign bank (31 CFR 1010.630(a)(2)). Covered 
financial institutions may satisfy these requirements by using the 
sample certification on the FinCEN website: (https://www.fincen.gov/sites/default/files/shared/Certification%20Regarding%20Correspondent%20Accounts%20for%20Foreign%20Banks.pdf) and re-certification (https://www.fincen.gov/sites/default/files/shared/Recertification%20Regarding%20Correspondent%20Accounts%20for%20Foreign%20Banks.pdf). Records of documents relied upon by a financial 
institution for purposes of 31 CFR 1010.630 must be maintained for at 
least five years after the date that the financial institution no 
longer maintains a correspondent account for such foreign bank (31 CFR 
1010.630(e)).
    Current Action: Renewal without change to the existing regulations.
    Type of Review: Renewal without change of a currently approved 
collection.
    Affected Public: Businesses and other for-profit institutions.
    Burden: It is estimated that 2,000 covered financial institutions 
maintain correspondent accounts with 9,000 foreign banks. The estimated 
average annual reporting burden associated with certification is 
180,000 hours (9,000 responses at 20 hours per response); the estimated 
average annual reporting burden associated with recertification is 
45,000 hours (9,000 responses at 5 hours per response); and the 
estimated average recordkeeping burden associated with section 
1010.630(e) is 81,000 hours (9,000 responses at 9 hours per 
response).\2\ Total PRA burden for this OMB Control number is 306,000 
hours.
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    \2\ FinCEN does not have an independent method to research the 
exact number of foreign bank certifications and recertfications in 
any given year because depository institutions do not file the model 
form with FinCEN and only provide the data upon FinCEN's request. 
Accordingly, FinCEN has chosen to take an expansive approach in its 
estimates of yearly certifications and recertifications.
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    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection of 
information displays a valid OMB control number. Records required to be 
retained under the BSA must be retained for five years. 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.

Jamal El-Hindi,
Deputy Director, Financial Crimes Enforcement Network.
[FR Doc. 2018-18079 Filed 8-21-18; 8:45 am]
 BILLING CODE 4810-02-P