[Federal Register Volume 85, Number 19 (Wednesday, January 29, 2020)]
[Notices]
[Pages 5276-5278]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01526]
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DEPARTMENT OF THE TREASURY
Renewal Without Change of Information Collection Requirements in
Connection With the Imposition of a Special Measure Concerning the
Islamic Republic of Iran as a Jurisdiction of Primary Money Laundering
Concern
AGENCY: Financial Crimes Enforcement Network (``FinCEN''), Treasury.
ACTION: Notice and request for comments.
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SUMMARY: As part of a continuing effort to reduce paperwork and
respondent burden, FinCEN invites comment on a renewal, without change,
to information
[[Page 5277]]
collection requirements finalized on November 4, 2019, imposing a
special measure with respect to the Islamic Republic of Iran as a
jurisdiction 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
March 30, 2020.
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-2020-0001 and the specific Office of Management and Budget
(``OMB'') control number 1506-0074.
Mail: Global Investigation Division, Financial Crimes
Enforcement Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket
Number FINCEN-2020-0001 and OMB control number 1506-0074.
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: 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:
I. Background
a. Statutory Provisions
On October 26, 2001, the President signed into law the Uniting and
Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 (the
USA PATRIOT Act). Title III of the USA PATRIOT Act amended the anti-
money laundering (AML) provisions of the Bank Secrecy Act (BSA),
codified at 12 U.S.C. 1829b, 12 U.S.C. 1951-1959, and 31 U.S.C. 5311-
5314, 5316-5332, to promote the prevention, detection, and prosecution
of international money laundering and the financing of terrorism.
Regulations implementing the BSA appear at 31 CFR Chapter X. The
authority of the Secretary of the Treasury (the Secretary) to
administer the BSA and its implementing regulations has been delegated
to the Director of FinCEN.\1\
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\1\ Therefore, references to the authority of the Secretary of
the Treasury under Section 311 of the USA PATRIOT Act apply equally
to the Director of FinCEN.
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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.
b. Overview of the Current Regulatory Provisions Regarding Special
Measures Concerning the Islamic Republic of Iran
FinCEN issued a final rule on November 4, 2019, imposing the fifth
special measure to prohibit U.S. financial institutions from opening or
maintaining a correspondent account for, or on behalf of, Iranian
banking institutions. (84 FR 59302). The rule further prohibits U.S.
financial institutions from processing transactions for the
correspondent account of a foreign bank in the United States if such a
transaction involves an Iranian financial institution, and requires
institutions to apply special due diligence to guard against such use
by Iranian financial institutions. See 31 CFR 1010.661.
Information Collection Under the Fifth Special Measure
The notification requirement in section 1010.661(b)(3)(i)(A) is
intended to enhance cooperation from correspondent account holders in
denying Iran access to the U.S. financial system. The information
required to be maintained by section 1010.661(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 1010.661.
II. Paperwork Reduction Act (PRA) 2
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\2\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
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Title: Renewal of Information Collection Requirements in connection
with the Imposition of a Special Measure concerning the Islamic
Republic of Iran as a Jurisdiction of Primary Money Laundering Concern.
Office of Management and Budget (OMB) Control Number: 1506-0074.
Abstract: FinCEN is issuing this notice to renew the OMB control
number for the imposition of a special measure against the Islamic
Republic of Iran as a jurisdiction of primary money laundering concern
pursuant to the authority contained in 31 U.S.C. 5318A. See 31 CFR
1010.661.
Type of Review: Renewal without change of a currently approved
collection.
Affected Public: Businesses and certain not-for-profit
institutions.
Frequency: One time notification. See 31 CFR 1010.661(b)(3)(i)(A)
and 1010.661(b)(4)(i).
Estimated Number of Respondents: 23,615.\3\
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\3\ The Estimated Number of Respondents is based on the sum of
the following numbers:
5,358 banks [Federal Deposit Insurance Corporation, Key
Statistics web page, April 25, 2019];
5,375 federally-insured credit unions [National Credit
Union Administration, Quarterly Credit Union Data Summary, December
31, 2018];
125 privately-insured credit unions [General
Accountability Office, PRIVATE DEPOSIT INSURANCE: Credit Unions
Largely Complied with Disclosure Rules, but Rules Should Be
Clarified, March 2017];
1,130 introducing brokers [National Futures Association
website, March 31, 2019];
64 futures commission merchants [National Futures
Association website, March 31, 2019];
3,607 securities firms [Financial Industry Regulatory
Authority website, December 31, 2018]; and,
7,956 U.S. mutual funds [Investment Company Institute,
2018 Factbook, 2018].
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Estimated Time per Respondent: 1 hour.
Estimated Total Annual Burden: 23,615 hours.
FinCEN's estimated number of affected financial institutions
accounts for all domestic financial institutions that could potentially
maintain correspondent accounts for foreign banks, and is designed to
ensure that all U.S. financial institutions are conducting their due
diligence and not processing transactions that may involve Iranian
financial institutions.
There are approximately 23,615 such financial institutions doing
business in the United States. In addition, all U.S. persons, including
U.S. financial institutions, currently exercise some degree of due
diligence in order to comply with existing U.S. sanctions programs
applicable to Iran.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information
[[Page 5278]]
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.
Jamal El-Hindi,
Deputy Director, Financial Crimes Enforcement Network.
[FR Doc. 2020-01526 Filed 1-28-20; 8:45 am]
BILLING CODE 4810-02-P