83 FR 42556 - Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Suspicious Activity Reporting Requirements by Brokers or Dealers in Securities and Futures Commission Merchants and Introducing Brokers in Commodities

DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network

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

Page Range		42556-42557
FR Document		2018-18077

FinCEN invites comment on the renewal of an information collection requirement for the recordkeeping and reporting of suspicious activities by brokers or dealers in securities and futures commission merchants and introducing brokers in commodities.

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

[Federal Register Volume 83, Number 163 (Wednesday, August 22, 2018)]
[Notices]
[Pages 42556-42557]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-18077]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Agency Information Collection Activities; Proposed Renewal; 
Comment Request; Renewal Without Change of Suspicious Activity 
Reporting Requirements by Brokers or Dealers in Securities and Futures 
Commission Merchants and Introducing Brokers in Commodities

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

ACTION: Notice and request for comments.

-----------------------------------------------------------------------

SUMMARY: FinCEN invites comment on the renewal of an information 
collection requirement for the recordkeeping and reporting of 
suspicious activities by brokers or dealers in securities and futures 
commission merchants and introducing brokers in commodities.

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-2018-0009 and OMB control number 1506-0019.
     Mail: Policy Division, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2018-0009 and OMB control number 1506-0019.
    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.

[[Page 42557]]


FOR FURTHER INFORMATION CONTACT: The FinCEN Resource Center at 800-767-
2825 or electronically at frc@fincen.gov.

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 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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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 assist Federal, state, and local law enforcement as well as 
regulatory authorities in the identification, investigation and 
prosecution of money laundering and other matters.
    The Bank Secrecy Act Suspicious Activity Report, (``BSAR'') is used 
by these entities to report suspicious activity to FinCEN. This request 
for comments also covers 31 CFR 1023.320 and 31 CFR 1026.320, and is 
being made pursuant to the Paperwork Reduction Act (``PRA'') of 
1995.\2\ This renewal pertains to the Office of Management and Budget's 
(``OMB'') approval of the information collection requirement per se 
imposed upon brokers or dealers in securities and futures commission 
merchants and introducing brokers in commodities.\3\ OMB approval of 
the allocated burden hours associated with these requirements (31 CFR 
1023.320 \4\ and 1026.320 \5\), stemming from the submission and record 
maintenance of the BSARs themselves,\6\ is reflected in the burden for 
the BSAR as approved under OMB Control No. 1506-0065. This splitting in 
the coverage of the OMB numbers is a result of FinCEN's streamlining of 
SAR reporting into one a single, unified format. Although the means of 
reporting was consolidated into a single reporting format covering 
multiple industry sectors under OMB Control No. 1506-0065, the 
reporting requirements themselves are still contained in separate rules 
covered by various OMB control numbers. Consequently, the burden listed 
in this renewal under control number 1506-0019 is estimated at one 
response and one hour in order to avoid double-counting the same 
burdens that have already been included in the estimate under control 
number 1506-0065.
---------------------------------------------------------------------------

    \2\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
    \3\ The Federal functional regulator for the securities industry 
is the U.S. Securities and Exchange Commission and, for the futures 
industry, it is the Commodity Futures Trading Commission.
    \4\ Reports by broker or dealers in securities of suspicious 
transactions. Although the means of reporting was consolidated into 
a single reporting format covering multiple industry sectors, the 
reporting requirements themselves are still contained in separate 
rules covered by various OMB control numbers.
    \5\ Reports by futures commission merchants and introducing 
brokers in commodities of suspicious transactions.
    \6\ The BSAR was approved by OMB under control number 1506-0065. 
The BSAR is a single report that replaced previous individual SAR 
forms for depository institutions, casinos, money services 
businesses, securities brokers or dealers, mutual funds, futures 
commission merchants, introducing brokers in commodities, and 
insurance companies.
---------------------------------------------------------------------------

    In accordance with the requirements of the PRA and its implementing 
regulations, the following information is presented concerning the 
information collection below.
    Title: Suspicious Activity Reporting by Brokers or Dealers in 
Securities and Futures Commission Merchants and Introducing Brokers in 
Commodities. (31 CFR 1023.320, and 31 CFR 1026.320.)
    OMB Control Number: 1506-0019.
    Abstract: This notice renews the SAR reporting and recordkeeping 
requirements for the above-mentioned entities.
    Form Number: FinCEN Form 111 (BSAR).\7\
---------------------------------------------------------------------------

    \7\ See footnote 2.
---------------------------------------------------------------------------

    Type of Review: Renewal of a currently approved information 
collection.
    Affected Public: Businesses or other for-profit institutions.
    Frequency: As required.
    Estimated Number of Respondents: 5,428.\8\
---------------------------------------------------------------------------

    \8\ According to the Securities Exchange Commission's 2017 
Annual Report, there are over 4,000 registered broker-dealers; 
FinCEN will use the number 4,200 as an estimate. According to the 
National Futures Association, there are 64 registered futures 
commission merchants and 1,164 introducing brokers. Added together, 
the total estimated number of respondents is 5,428.
---------------------------------------------------------------------------

    Estimated Total Annual Responses: 1.\9\
---------------------------------------------------------------------------

    \9\ As noted above under the SUPPLEMENTARY INFORMATION section, 
the actual reporting and recordkeeping burden of the regulations (31 
CFR 1023.320 and 1026.320) is reflected in the burden for the BSAR 
as approved under 1506-0065. Under control number 1506-0019, the 
burden is estimated at one response and one hour in order to avoid 
double-counting the same burdens that have already been included in 
the estimate under control number 1506-0065.
---------------------------------------------------------------------------

    Estimated Annual Reporting and Recordkeeping Burden: 1 hour.
    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. 2018-18077 Filed 8-21-18; 8:45 am]
 BILLING CODE 4810-02-P

42556 Federal Register / Vol. 83, No. 163 / Wednesday, August 22, 2018 / Notices

programs and compliance procedures.1 Banks.pdf). Records of documents relied information on respondents, including
Title III of the USA PATRIOT Act of upon by a financial institution for through the use of automated collection
2001, Public Law 107–56, included purposes of 31 CFR 1010.630 must be techniques or other forms of information
certain amendments to the anti-money maintained for at least five years after technology; and (e) estimates of capital
laundering provisions of Title II of the the date that the financial institution no or start-up costs and costs of operation,
BSA, 31 U.S.C. 5311 et seq., which are longer maintains a correspondent maintenance and purchase of services to
intended to aid in the prevention, account for such foreign bank (31 CFR provide information.
detection, and prosecution of 1010.630(e)).
Jamal El-Hindi,
international money laundering and Current Action: Renewal without
terrorist financing. change to the existing regulations. Deputy Director, Financial Crimes
Regulations implementing Title II of Enforcement Network.
Type of Review: Renewal without
the BSA appear at 31 CFR Chapter X. change of a currently approved [FR Doc. 2018–18079 Filed 8–21–18; 8:45 am]
The authority of the Secretary of the collection. BILLING CODE 4810–02–P
Treasury to administer Title II of the Affected Public: Businesses and other
BSA has been delegated to the Director for-profit institutions.
of FinCEN. The information collected Burden: It is estimated that 2,000 DEPARTMENT OF THE TREASURY
and retained under the regulation covered financial institutions maintain
addressed in this notice assists Federal, Financial Crimes Enforcement Network
correspondent accounts with 9,000
state, and local law enforcement as well foreign banks. The estimated average Agency Information Collection
as regulatory authorities in the annual reporting burden associated with Activities; Proposed Renewal;
identification, investigation and certification is 180,000 hours (9,000 Comment Request; Renewal Without
prosecution of money laundering and responses at 20 hours per response); the Change of Suspicious Activity
other matters. estimated average annual reporting Reporting Requirements by Brokers or
This request for comments is being burden associated with recertification is Dealers in Securities and Futures
made pursuant to the Paperwork 45,000 hours (9,000 responses at 5 hours Commission Merchants and
Reduction Act (‘‘PRA’’) of 1995, Public per response); and the estimated average Introducing Brokers in Commodities
Law 104–13, 44 U.S.C. 3506(c)(2)(A). In recordkeeping burden associated with
accordance with the requirements of the section 1010.630(e) is 81,000 hours AGENCY: Financial Crimes Enforcement
PRA and its implementing regulations, (9,000 responses at 9 hours per Network (‘‘FinCEN’’), U.S. Department
the following information is presented response).2 Total PRA burden for this of the Treasury.
concerning the information collection OMB Control number is 306,000 hours. Notice and request for
ACTION:
below. An agency may not conduct or
Title: Correspondent Accounts for comments.
sponsor, and a person is not required to
Foreign Shell Banks; Recordkeeping and respond to, a collection of information SUMMARY: FinCEN invites comment on
Termination of Correspondent Accounts unless the collection of information the renewal of an information collection
for Foreign Banks (31 CFR 1010.630). displays a valid OMB control number.
OMB Control Number: 1506–0043. requirement for the recordkeeping and
Records required to be retained under reporting of suspicious activities by
Abstract: Covered financial the BSA must be retained for five years.
institutions are prohibited from brokers or dealers in securities and
Generally, information collected futures commission merchants and
maintaining correspondent accounts for pursuant to the BSA is confidential, but
foreign shell banks (31 CFR introducing brokers in commodities.
may be shared as provided by law with
1010.630(a)(1)). Covered financial DATES: Written comments are welcome
regulatory and law enforcement
institutions that maintain correspondent authorities. and must be received on or before
accounts for foreign banks must Request for Comments: Comments October 22, 2018.
maintain records of owner(s) of the submitted in response to this notice will ADDRESSES: Comments may be
foreign bank and the name and address be summarized and/or included in the submitted by any of the following
of a person residing in the United States request for OMB approval. All methods:
who is authorized to accept service of comments will become a matter of • Federal E-rulemaking Portal: http://
legal process for the foreign bank (31 public record. Comments are invited on: www.regulations.gov. Follow the
CFR 1010.630(a)(2)). Covered financial (a) Whether the collection of instructions for submitting comments.
institutions may satisfy these information is necessary for the proper Refer to Docket Number FINCEN–2018–
requirements by using the sample performance of the functions of the 0009 and OMB control number 1506–
certification on the FinCEN website: agency, including whether the 0019.
(https://www.fincen.gov/sites/default/
files/shared/Certification%20
information shall have practical utility; • Mail: Policy Division, Financial
(b) the accuracy of the agency’s estimate Crimes Enforcement Network, P.O. Box
Regarding%20Correspondent of the burden of the collection of
%20Accounts%20for%20 39, Vienna, VA 22183. Refer to Docket
information; (c) ways to enhance the Number FINCEN–2018–0009 and OMB
Foreign%20Banks.pdf) and re- quality, utility, and clarity of the
certification (https://www.fincen.gov/ control number 1506–0019.
information to be collected; (d) ways to Please submit comments by one
sites/default/files/shared/Recertification minimize the burden of the collection of
%20Regarding%20Correspondent method only. Comments will also be
%20Accounts%20for%20Foreign%20 incorporated to FinCEN’s retrospective
amozie on DSK3GDR082PROD with NOTICES1

2 FinCEN does not have an independent method

to research the exact number of foreign bank
regulatory review process, as mandated
1 Language expanding the scope of the BSA to certifications and recertfications in any given year by E.O. 12866 and 13563. All comments
intelligence or counter-intelligence activities to because depository institutions do not file the submitted in response to this notice will
protect against international terrorism was added by model form with FinCEN and only provide the data become a matter of public record.
Section 358 of the Uniting and Strengthening upon FinCEN’s request. Accordingly, FinCEN has
America by Providing Appropriate Tools Required chosen to take an expansive approach in its
Therefore, you should submit only
to Intercept and Obstruct Terrorism Act of 2001, estimates of yearly certifications and information that you wish to make
Public Law 107–56. recertifications. publicly available.

VerDate Sep<11>2014 16:34 Aug 21, 2018 Jkt 244001 PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 E:\FR\FM\22AUN1.SGM 22AUN1

Federal Register / Vol. 83, No. 163 / Wednesday, August 22, 2018 / Notices 42557

FOR FURTHER INFORMATION CONTACT: The these requirements (31 CFR 1023.320 4 Estimated Total Annual Responses:
FinCEN Resource Center at 800–767– and 1026.320 5), stemming from the 1.9
2825 or electronically at frc@fincen.gov. submission and record maintenance of Estimated Annual Reporting and
SUPPLEMENTARY INFORMATION: The Bank the BSARs themselves,6 is reflected in Recordkeeping Burden: 1 hour.
Secrecy Act (‘‘BSA’’), Titles I and II of the burden for the BSAR as approved
under OMB Control No. 1506–0065. An agency may not conduct or
Public Law 91–508, as amended,
codified at 12 U.S.C. 1829(b), 12 U.S.C. This splitting in the coverage of the sponsor, and a person is not required to
1951–1959, and 31 U.S.C. et seq., OMB numbers is a result of FinCEN’s respond to, a collection of information
authorizes the Secretary of the Treasury, streamlining of SAR reporting into one unless the collection of information
among other things, to require financial a single, unified format. Although the displays a valid OMB control number.
institutions to keep records and file means of reporting was consolidated Records required to be retained under
reports that are determined to have a into a single reporting format covering the BSA must be retained for five years.
high degree of usefulness in criminal, multiple industry sectors under OMB Generally, information collected
tax, and regulatory matters or in the Control No. 1506–0065, the reporting pursuant to the BSA is confidential, but
conduct of intelligence or counter- requirements themselves are still may be shared as provided by law with
intelligence activities to protect against contained in separate rules covered by regulatory and law enforcement
international terrorism, and to various OMB control numbers. authorities.
implement counter-money laundering Consequently, the burden listed in this
Request for Comments: Comments
programs and compliance procedures.1 renewal under control number 1506–
submitted in response to this notice will
Title III of the USA PATRIOT Act of 0019 is estimated at one response and
one hour in order to avoid double- be summarized and/or included in the
2001, Public Law 107–56, included request for OMB approval. All
certain amendments to the anti-money counting the same burdens that have
already been included in the estimate comments will become a matter of
laundering provisions of Title II of the
under control number 1506–0065. public record. Comments are invited on:
BSA, 31 U.S.C. 5311 et seq., which are
In accordance with the requirements (a) Whether the collection of
intended to aid in the prevention,
detection, and prosecution of of the PRA and its implementing information is necessary for the proper
international money laundering and regulations, the following information is performance of the functions of the
terrorist financing. presented concerning the information agency, including whether the
Regulations implementing Title II of collection below. information shall have practical utility;
the BSA appear at 31 CFR Chapter X. Title: Suspicious Activity Reporting (b) the accuracy of the agency’s estimate
The authority of the Secretary of the by Brokers or Dealers in Securities and of the burden of the collection of
Treasury to administer Title II of the Futures Commission Merchants and information; (c) ways to enhance the
BSA has been delegated to the Director Introducing Brokers in Commodities. quality, utility, and clarity of the
of FinCEN. The information collected (31 CFR 1023.320, and 31 CFR information to be collected; (d) ways to
and retained under the regulation 1026.320.) minimize the burden of the collection of
addressed in this notice assist Federal, OMB Control Number: 1506–0019. information on respondents, including
state, and local law enforcement as well Abstract: This notice renews the SAR through the use of automated collection
as regulatory authorities in the reporting and recordkeeping techniques or other forms of information
identification, investigation and requirements for the above-mentioned technology; and (e) estimates of capital
prosecution of money laundering and entities. or start-up costs and costs of operation,
other matters. Form Number: FinCEN Form 111 maintenance and purchase of services to
The Bank Secrecy Act Suspicious (BSAR).7
provide information.
Activity Report, (‘‘BSAR’’) is used by Type of Review: Renewal of a
these entities to report suspicious currently approved information Jamal El-Hindi,
activity to FinCEN. This request for collection. Deputy Director, Financial Crimes
comments also covers 31 CFR 1023.320 Affected Public: Businesses or other Enforcement Network.
and 31 CFR 1026.320, and is being made for-profit institutions. [FR Doc. 2018–18077 Filed 8–21–18; 8:45 am]
pursuant to the Paperwork Reduction Frequency: As required.
BILLING CODE 4810–02–P
Act (‘‘PRA’’) of 1995.2 This renewal Estimated Number of Respondents:
pertains to the Office of Management 5,428.8
and Budget’s (‘‘OMB’’) approval of the 4 Reports by broker or dealers in securities of
information collection requirement per suspicious transactions. Although the means of
se imposed upon brokers or dealers in reporting was consolidated into a single reporting
securities and futures commission format covering multiple industry sectors, the
merchants and introducing brokers in reporting requirements themselves are still
contained in separate rules covered by various OMB number 4,200 as an estimate. According to the
commodities.3 OMB approval of the control numbers. National Futures Association, there are 64
allocated burden hours associated with 5 Reports by futures commission merchants and registered futures commission merchants and 1,164
introducing brokers in commodities of suspicious introducing brokers. Added together, the total
1 Language expanding the scope of the BSA to transactions. estimated number of respondents is 5,428.
intelligence or counter-intelligence activities to 6 The BSAR was approved by OMB under control
9 As noted above under the SUPPLEMENTARY
protect against international terrorism was added by number 1506–0065. The BSAR is a single report
INFORMATION section, the actual reporting and
amozie on DSK3GDR082PROD with NOTICES1

Section 358 of the Uniting and Strengthening that replaced previous individual SAR forms for
recordkeeping burden of the regulations (31 CFR
America by Providing Appropriate Tools Required depository institutions, casinos, money services
to Intercept and Obstruct Terrorism Act of 2001, businesses, securities brokers or dealers, mutual 1023.320 and 1026.320) is reflected in the burden
Public Law 107–56. funds, futures commission merchants, introducing for the BSAR as approved under 1506–0065. Under
2 Public Law 104–13, 44 U.S.C. 3506(c)(2)(A). brokers in commodities, and insurance companies. control number 1506–0019, the burden is estimated
3 The Federal functional regulator for the 7 See footnote 2. at one response and one hour in order to avoid
securities industry is the U.S. Securities and 8 According to the Securities Exchange double-counting the same burdens that have
Exchange Commission and, for the futures industry, Commission’s 2017 Annual Report, there are over already been included in the estimate under control
it is the Commodity Futures Trading Commission. 4,000 registered broker-dealers; FinCEN will use the number 1506–0065.

VerDate Sep<11>2014 16:34 Aug 21, 2018 Jkt 244001 PO 00000 Frm 00099 Fmt 4703 Sfmt 9990 E:\FR\FM\22AUN1.SGM 22AUN1

Document Created: 2018-08-22 00:39:26
Document Modified: 2018-08-22 00:39:26

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 October 22, 2018.
Contact		The FinCEN Resource Center at 800-767- 2825 or electronically at [email protected]
FR Citation		83 FR 42556

83 FR 42556 - Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Suspicious Activity Reporting Requirements by Brokers or Dealers in Securities and Futures Commission Merchants and Introducing Brokers in Commodities

DEPARTMENT OF THE TREASURYFinancial Crimes Enforcement Network

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

DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network