83 FR 42558 - Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Anti-Money Laundering Programs for Money Services Businesses, Mutual Funds, and Operators of Credit Card Systems

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 money services businesses (``MSBs''), mutual funds, and operators of credit card systems to develop and implement written anti-money laundering programs reasonably designed to prevent those financial institutions from being used to facilitate money laundering and the financing of terrorist activities. 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).

[Federal Register Volume 83, Number 163 (Wednesday, August 22, 2018)]
[Notices]
[Pages 42558-42559]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-18078]



[[Page 42558]]

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

DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Agency Information Collection Activities; Proposed Renewal; 
Comment Request; Renewal Without Change of Anti-Money Laundering 
Programs for Money Services Businesses, Mutual Funds, and Operators of 
Credit Card Systems

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 information 
collections in existing regulations requiring money services businesses 
(``MSBs''), mutual funds, and operators of credit card systems to 
develop and implement written anti-money laundering programs reasonably 
designed to prevent those financial institutions from being used to 
facilitate money laundering and the financing of terrorist activities. 
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).

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-2018-0010 and the Office of Management and Budget (``OMB'') 
control number 1506-0020.
     Mail: Policy Division, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2018-0010 and OMB control number 1506-0020.
    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 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.
    In accordance with the requirements of the PRA and its implementing 
regulations, the following information is presented concerning the 
information collection below.
    Title: Anti-Money Laundering Programs for MSBs (31 CFR 
1022.210),\2\ Mutual Funds (31 CFR 1024.210), and Operators of Credit 
Card Systems (31 CFR 1028.210).
---------------------------------------------------------------------------

    \2\ The term MSB includes dealer in foreign exchange, check 
casher, issuer or seller of traveler's checks or money orders, 
provider of prepaid access, money transmitter, U.S. Postal Service, 
and seller of prepaid access. See 31 CFR 1010.100(ff).
---------------------------------------------------------------------------

    OMB Control Number: 1506-0020.
    Abstract: MSBs, mutual funds, and operators of credit card systems 
are required to develop and implement written anti-money laundering 
programs. FinCEN recognizes a three hour burden for the initial 
development of an AML program. FinCEN further estimates an annual 
burden of one hour for maintenance of the program (i.e., review and 
update as necessary). A copy of the written program must be maintained 
for five years. In view of the additional information providers and 
sellers of prepaid access (a type of MSB) are required to collect and 
maintain to verify identity under their AML program regulations, and 
the degree of automation available to them, FinCEN estimates an 
additional annual maintenance burden of two minutes for each prepaid 
card issued for this MSB subset.\3\
---------------------------------------------------------------------------

    \3\ In addition to maintaining an AML program, providers and 
sellers of prepaid access are required to collect and maintain the 
customer's name, date of birth, address, and identification number 
for five years. This collection is automated. FinCEN estimates that 
approximately 2,583,300 prepaid cards are issued annually. See 31 
CFR 1022.210(d)(iv).
---------------------------------------------------------------------------

    Current Action: Renewal without change to existing regulations.
    Type of Review: Renewal without change of a currently approved 
information collection.
    Affected Public: Businesses and other for-profit institutions.
    Burden:
    Estimated Number of Respondents: 327,106 broken out as follows:

 MSBs: 31 CFR 1022.210 = 324,100
 Mutual Funds: 31 CFR 1024.210 = 3,000
 Operators of Credit Card Systems: 31 CFR 1028.120 = 6

    Estimated Annual Responses: 2,910,406 broken out as follows:

 MSBs (AML Programs): 31 CFR 1022.210 = 324,100
 MSBs (Prepaid Cards--Customer Identity Verification): 31 CFR 
1022.210(d)(iv) = 2,583,300 \4\
---------------------------------------------------------------------------

    \4\ See supra note 3.
---------------------------------------------------------------------------

 Mutual Funds (AML Program): 31 CFR 1024.210 = 3,000
 Operators of Credit Card Systems (AML Program): 31 CFR 
1028.210 = 6

    AML Program-Related Hourly Burdens, Estimated at One Hour per 
Respondent:

 MSBs (AML Programs): 31 CFR 1022.210 = 324,100
 Mutual Funds: 31 CFR 1024.210 = 3,000
 Operators of Credit Card Systems: 31 CFR 1028.210 = 6

    Prepaid Card-Related Hourly Burden:

 MSBs (Prepaid Cards--Customer Identity Verification): 31 CFR 
1022.210(d)(iv) = 86,110.\5\
---------------------------------------------------------------------------

    \5\ 2,583,300 prepaid cards multiplied by 2 minutes per card and 
converted to hours equals 86,100 hours.

    Estimated Total Number of Burden Hours: 413,216.\6\
---------------------------------------------------------------------------

    \6\ (324,100 + 300 + 6 + 86,110 = 413,216).
---------------------------------------------------------------------------

    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

[[Page 42559]]

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. 2018-18078 Filed 8-21-18; 8:45 am]
 BILLING CODE 4810-02-P