[Federal Register Volume 85, Number 154 (Monday, August 10, 2020)]
[Notices]
[Pages 48327-48329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17408]
=======================================================================
-----------------------------------------------------------------------
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 a Special Measure
Concerning Bank of Dandong as a Financial Institution of Primary Money
Laundering Concern
AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.
ACTION: Notice and request for comments.
-----------------------------------------------------------------------
SUMMARY: As part of its continuing effort to reduce paperwork and
respondent burden, FinCEN invites comment on a renewal, without change,
to information collection requirements finalized on November 8, 2017,
imposing a special measure with respect to Bank of Dandong as a
financial institution 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
October 9, 2020.
[[Page 48328]]
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-2020-0008 and the specific Office of Management and
Budget (OMB) control number 1506-0072.
Mail: Global Investigations Division, Financial Crimes
Enforcement Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket
Number FINCEN-2020-0008 and OMB control number 1506-0072.
Please submit comments by one method only. 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 Regulatory Support Section
at [email protected].
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Provisions
The legislative framework generally referred to as the Bank Secrecy
Act (BSA) consists of the Currency and Financial Transactions Reporting
Act of 1970, as amended by the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001 (USA PATRIOT Act) (Pub. L. 107-56) and other
legislation. 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.
The BSA authorizes the Secretary of the Treasury, inter alia, 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\ Regulations implementing Title II of the BSA appear at
31 CFR Chapter X. The authority of the Secretary to administer the BSA
has been delegated to the Director of FinCEN.\2\
---------------------------------------------------------------------------
\1\ Section 358 of the USA PATRIOT Act added language expanding
the scope of the BSA to intelligence or counter-intelligence
activities to protect against international terrorism.
\2\ Treasury Order 180-01 (January 14, 2020).
---------------------------------------------------------------------------
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 certain special measures to address the
primary money laundering concern.
FinCEN may impose one or more of these special measures in order to
protect the U.S. financial system from these threats. 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 U.S. 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.
FinCEN issued a final rule on November 8, 2017, imposing the fifth
special measure to prohibit covered U.S. financial institutions from
opening or maintaining a correspondent account for, or on behalf of,
Bank of Dandong.\3\ The rule further requires covered U.S. financial
institutions to apply due diligence to their correspondent accounts
that is reasonably designed to guard against their use by Bank of
Dandong.\4\ It also requires covered institutions to apply special due
diligence to their foreign correspondent accounts that is reasonably
designed to guard against their use to process transactions involving
Bank of Dandong.
---------------------------------------------------------------------------
\3\ 82 FR 51765.
\4\ See 31 CFR 1010.660.
---------------------------------------------------------------------------
The notification requirement in 31 CFR 1010.660(b)(3)(i)(A) is
intended to enhance cooperation from correspondent account holders in
preventing Bank of Dandong from accessing to the U.S. financial system.
The information financial institutions are required to maintain
pursuant to section 1010.660(b)(4)(i) will be used by federal agencies
and certain self-regulatory organizations to verify compliance by
covered financial institutions with the provisions of 31 CFR 1010.660.
II. Paperwork Reduction Act of 1995 (PRA) 5
---------------------------------------------------------------------------
\5\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
---------------------------------------------------------------------------
Title: Information Collection Requirements in Connection With the
Imposition of a Special Measure Against Bank of Dandong, a Financial
Institution of Primary Money Laundering Concern.
OMB Control Number: 1506-0072.
Abstract: FinCEN is issuing this notice to renew the OMB control
number for the imposition of a special measure against Bank of Dandong
as a financial institution of primary money laundering concern pursuant
to the authority contained in 31 U.S.C. 5318A. See 31 CFR 1010.660.
Type of Review: Renewal without change of a currently approved
collection.
Affected Public: Businesses or other for-profit institutions, and
not-for-profit institutions.
Frequency: One time notification. See 31 CFR 1010.660(b)(3)(i)(A)
and 1010.660(b)(4)(i).
Estimated Number of Respondents: 17,063.\6\
---------------------------------------------------------------------------
\6\ The Estimated Number of Respondents is based on the sum of
the following numbers:
5,306 banks--according to the Federal Deposit Insurance
Corporation (FDIC) there were 5,103 FDIC-insured banks as of March
31, 2020. According to the Federal Reserve Board (FRB), there were
203 other entities supervised by the FRB, as of June 16, 2020, that
fall within the definition of bank. (20 Edge Act institutions, 15
agreement corporations, and 168 foreign banking organizations).
5,236 federally-insured credit unions--according to the
National Credit Union Administration there were 5,236 federally
regulated credit unions as of December 31, 2019.
125 privately-insured credit unions--according to the
General Accountability Office, PRIVATE DEPOSIT INSURANCE: Credit
Unions Largely Complied with Disclosure Rules, but Rules Should Be
Clarified, March 2017.
1,104 introducing brokers--according to the Commodities
and Futures Trading Commission (CFTC), there were 1,104 introducing
brokers in commodities registered with the CFTC as of March 31,
2020.
61 futures commission merchants--according to the CFTC,
there were 61 futures commission merchants registered with the CFTC,
as of March 31, 2020.
3,640 broker/dealers--according to the Securities and
Exchange Commission (SEC), there were 3,640 brokers or dealers in
securities registered with the SEC, as of March 31, 2020.
1,591 mutual funds--according to the SEC, there were
approximately 1,591 mutual funds in 2017, based on forms filed with
the SEC. The SEC provided the estimate to FinCEN for the last
renewal of OMB control number 1506-0033 (83 FR 46012, Sept. 11,
2018). FinCEN was unable to obtain a more recent estimate.
---------------------------------------------------------------------------
Estimated Time per Respondent: 1 hour.
Estimated Total Annual Burden: 17,063 hours.
When the final rule was published on November 8, 2017, the number
of financial institutions affected by the rule was estimated at 5,000.
FinCEN has since revised the estimated number of affected financial
institutions upward to account for all domestic financial institutions
that could potentially maintain correspondent accounts for foreign
banks, and recognizing that, under the final rule, covered financial
institutions are required to apply due diligence to their correspondent
accounts that is reasonably designed to guard against their indirect
use by Bank
[[Page 48329]]
of Dandong. There are approximately 17,063 such financial institutions
doing business in the United States. As noted, this revision should not
have a significant impact on a substantial number of small entities.
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 OMB. 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.
Michael Mosier,
Deputy Director, Financial Crimes Enforcement Network.
[FR Doc. 2020-17408 Filed 8-7-20; 8:45 am]
BILLING CODE 4810-02-P