2024-18035. Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Regulations Requiring Records To Be Made and Retained by Financial Institutions, Banks, and Providers and Sellers of Prepaid Access

Table 1—Distribution of Financial Institutions Covered by This Notice, by Type of Financial Institution

Type of financial institution		Number of financial institutions
Banks with a Federal functional regulator (FFR)		a  9,462
Banks lacking an FFR		b  600
Brokers or dealers in securities		c  3,478
Principal MSBs, including:
MSBs that conduct money transmission	16,897	d  27,500
MSBs that conduct money transmission but do not provide or sell prepaid access	14,588
MSBs that conduct money transmission and provide or sell prepaid access	2,309
MSBs that do not conduct money transmission and are providers or sellers of prepaid access	355
Agent MSBs		e  229,161
Telegraph companies		f  0
Casinos and card rooms		g  1,277
Futures commission merchants and introducing brokers in commodities		h  954
Mutual funds		i  1,400
Total		273,832
a  This estimate of the total number of banks with an FFR, including credit unions, is based on end of year 2023 data as provided by each of the FFRs, respectively. The FFRs are the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the National Credit Union Administration.
b  This estimate of active entries as of year-end 2023 incorporates data from both public and non-public sources, including: Call Reports; various State banking/financial institution regulators' websites and directories; the Federal Reserve Board of Governors' Master Account and Services database (https://federalreserve.gov/​paymentsystems/​master-account-andservices-database-exisiting-access.htm); and data from the Commonwealth of Puerto Rico Oficina del Comisionado de Instituciones Financieras (OCIF); and was derived in consultation with staff from the Internal Revenue Service's Small Business/Self-Employed Division.
c  Estimate based on December 2023 file downloaded “from Data—Company Information About Active Broker-Dealers,” (accessed Feb. 28, 2024), available at https://www.sec.gov/​help/​foiadocsbdfoia.
d  The definition of MSB (31 CFR 1010.100(ff)) covers both principal MSBs and agents. This value represents the number of uniquely identifiable principal MSBs with indicia of ongoing operations as of year-end 2023 rounded to the nearest hundred. The estimate is derived from FinCEN's publicly available MSB data (accessed Feb. 28, 2024), available at https://www.fincen.gov/​msb-registrant-search. Estimates of subcategories are based on registrants' self-reported activities.
e  In the absence of public comments in prior renewals of the OMB control number applicable to this regulatory requirement, FinCEN considers it reasonable to continue to rely upon its previous estimate that the number of agent MSBs remains approximately 229,161. This value was previously published in the 2020 notice to renew OMB control numbers 1506-0020, 1506-0030, and 1506-0035 (85 FR 49420 (Aug. 13, 2020)).
f  Although telegraph companies are defined as financial institutions under 31 CFR 1010.100(t), FinCEN is not aware of any telegraph companies that would be affected by the Recordkeeping or Travel Rule.
g  Estimate based on the American Gaming Association (AGA) “State of Play,” reporting 486 commercial casinos and 525 tribal casinos as of December 31, 2023 (accessed Feb. 28, 2024), available at https://www.americangaming.org/​state-of-play/​. As of December 31, 2022, there were also 266 card rooms as published in the AGA's “State of the States” annual report, p. 16 (accessed Feb. 28, 2024), available at https://www.americangaming.org/​wp-content/​uploads/​2023/​05/​AGA-State-of-the-States-2023.pdf. ( print page 65975)
h  The number of futures commissions merchants as of December 31, 2023 was obtained from data available at CFTC Financial Data for FCMs (accessed Mar. 1, 2024), available at https://www.cftc.gov/​MarketReports/​financialfcmdata/​index.htm. To prevent double counting in burden estimates, 35 covered financial institutions that are also affected entities as broker-dealers were removed from the count; the count of introducing brokers in commodities as of year-end 2023 was provided by the CFTC.
i  This estimate of the number of active mutual funds as of year-end 2023 is based on Form N-CEN filings received by the U.S. Securities and Exchange Commission through January 20, 2023, as represented by data downloaded from SEC Open Data (accessed Feb. 29, 2024), available at https://www.sec.gov/​dera/​data/​form-ncen-data-sets.

31 CFR 1010.410(a) Through (c)

Description of Recordkeepers: Financial institutions providing extensions of credit in excess of $10,000 (other than those secured by real property), and participating in transfers of funds, currency, other monetary instruments, checks, investment securities, or credit of more than $10,000 to or from the United States. FinCEN expects that while these requirements apply equally to all of types of financial institutions listed in table 1 (above), the different nature and volume of the business of these different types of financial institutions means that these requirements are likely, in practice, to impose a greater recordkeeping burden on some types of financial institutions than on others. In particular, agent MSBs are typically significantly smaller than principal MSBs, engage in a significantly lower volume of transactions, and consequently should experience a significantly lower burden on an institution-by-institution basis.

31 CFR 1010.410(d)

As noted above, the recordkeeping burden for 31 CFR 1010.410(d) is accounted for under OMB control number 1506-0056, which applies to 31 CFR 1010.370(a). A notice to renew OMB control number 1506-0056 was published in the Federal Register in February 2024.^[39]

31 CFR 1010.410(e)

Description of Recordkeepers: Financial institutions other than banks that conduct transmittals of funds in the amount of $3,000 or more. FinCEN expects that money transmitters (a type of MSB) will comprise the overwhelming majority. Moreover, FinCEN expects that principal money transmitters will engage in significantly more activity of this kind than agent money transmitters. FinCEN is interested to receive comments on whether these expectations are sound, and if not, then the degree to which different categories of financial institutions will be affected differently by this recordkeeping requirement.

31 CFR 1010.410(f)

Description of Recordkeepers: Financial institutions, including banks, that are the originator's bank, transmittor's financial institution or an intermediary bank or financial institution in a funds transfer or other transmittal of funds in the amount of $3,000 or more. FinCEN expects primarily banks, including credit unions, and money transmitters (one type of MSB) to comprise the population of affected financial institutions. Moreover, FinCEN expects that principal money transmitters will engage in significantly more activity of this kind than agent money transmitters. FinCEN is interested to receive comments on whether these expectations are sound, and if not then the degree to which different categories of financial institutions will be affected differently by this recordkeeping requirement.

31 CFR 1020.410

Description of Recordkeepers: Banks, including credit unions, that conduct funds transfers in amounts of $3,000 or more, and banks that conduct transactions addressed in 31 CFR 1020.410(c).

31 CFR 1022.420

Description of Recordkeepers: MSBs that are providers or sellers of prepaid access, as defined in 31 CFR 1010.100(ff)(4) and (7) and that conduct prepaid access-related transactions.

In connection with a variety of initiatives FinCEN is undertaking to implement the AML Act, FinCEN intends to conduct, in the future, additional assessments of the PRA burden associated with BSA requirements and responsive modifications to current estimates.

Part 2. Annual PRA Burden and Cost

OMB Control Number 1506-0058

31 CFR 1010.410(a) Through (c)

Each financial institution must retain an original or a copy of records related to extensions of credit in excess of $10,000 (other than those secured by real property), and an original or copy of records related to transfers of funds, currency, other monetary instruments, checks, investment securities, or credit of more than $10,000 to or from the United States.^[40] Due to the challenges of obtaining the total number of such records required to be maintained per financial institution, in its most recent control number renewal FinCEN estimated that the average annual recordkeeping burden per financial institution for these requirements was 50 hours per financial institution.^[41] In the absence of additional data or other information necessary to construct a more accurate estimate of total burden, FinCEN (1) continues to estimate that the average annual hourly burden of complying with 31 CFR 1010.410(a) through (c) is 50 hours per financial institution that is not an agent MSB, and 5 hours per agent MSB, (2) requests public comment on the reasonableness and accuracy of these estimates, and (3) requests any data, studies, and quantitative or qualitative reports that would inform a revised estimate of burden.^[42]

Based on an estimate of approximately 273,832 affected financial institutions ^[43] multiplying 44,671 (financial institutions other than agent MSBs) by 50 (hours) and 229,161 (agent MSBs) by 5 (hours) results in a total estimate of annual hourly burden of approximately 3,379,355 hours.

31 CFR 1010.410(e)

Each nonbank financial institution that conducts transmittals of funds in amounts of $3,000 or more must collect and retain information related to these transactions. Due to the challenges of obtaining the total number of transmittals of funds of $3,000 or more conducted per nonbank financial institution, and the uncertain significance for burden calculation of the maintenance of different numbers of such records by different financial institutions, FinCEN estimated, in its most recent control number renewal, that the average annual recordkeeping burden per financial institution was approximately 16 hours per affected ( print page 65976) financial institution.^[44] In the absence of information suggesting a more accurate way of estimating total burden, FinCEN continues to estimate that the average annual hourly burden to comply with 31 CFR 1010.410(e) is 16 hours per financial institution. As described above and detailed below,^[45] public comment is invited.

Based on an estimate of approximately 16,897 MSBs ^[46] providing money transmission services, multiplying by 16 (hours) results in a total estimate of annual hourly burden of approximately 270,352 hours.

31 CFR 1010.410(f)

Each financial institution must transmit information on funds transfers and transmittals of funds when acting as the originator's bank, the transmittor's financial institution or an intermediary bank or financial institution. Due to the challenges of obtaining the total number of funds transfers or transmittals of funds for which a financial institution was acting as the originator's bank, the transmittor's financial institution, or an intermediary bank or financial institution, and the uncertain significance for burden calculation of the maintenance of different numbers of such records by different financial institutions, FinCEN estimated, in its most recent control number renewal, that the annual recordkeeping burden per financial institution was an average of 12 hours per affected financial institution.^[47] In the absence of information suggesting a more accurate way of estimating total burden, FinCEN continues to estimate that the average annual hourly burden to comply with 31 CFR 1010.410(f) is 12 hours per financial institution.

26,959 banks and MSBs conducting money transmission,^[48] multiplied by 12 hours, results in a total annual hourly burden estimate of 323,508 hours.

31 CFR 1022.420

Each provider or seller of prepaid access is required to maintain access to transactional records generated in the ordinary course of business that would be needed to reconstruct prepaid access activation, loads, reloads, purchases, withdrawals, transfers, or other prepaid-related transactions. Due to the challenges of obtaining the total number of prepaid access transactions, and the uncertain significance for burden calculation of the maintenance of different numbers of such records by different financial institutions, FinCEN estimated, in its most recent control number renewal, that the annual recordkeeping burden per financial institution was 16 hours for every affected financial institution.^[49] In the absence of information suggesting a more accurate way of estimating total burden, FinCEN continues to estimate that the average annual hourly burden to comply with 31 CFR 1022.420 is 16 hours per financial institution.

2,664 MSBs which are providers or sellers of prepaid access,^[50] multiplied by 16 hours, results in a total annually hourly burden estimate of 42,624 hours.

Total Annual PRA Burden for OMB Control Number 1506-0058: 4,015,839 hours.^[51]

OMB Control Number 1506-0059

31 CFR 1020.410

Banks, including credit unions, are required to: (1) collect and retain information on funds transfers when conducting funds transfers in amounts of $3,000 or more; and (2) retain an original or copy of records when conducting transactions addressed in 31 CFR 1020.410(c). Due to the challenges of obtaining the total number of funds transfers of $3,000 or more conducted by each bank, and the challenges of obtaining the total number of transactions conducted by each bank that would trigger recordkeeping requirements in 31 CFR 1020.410(c), and the uncertain significance for burden calculation of different financial institutions conducting different numbers of such transactions, FinCEN estimated, in its most recent control number renewal, that the annual recordkeeping burden per bank was an average of 100 hours per affected financial institution.^[52] In the absence of information suggesting a more accurate way of estimating total burden, FinCEN continues to estimate that the average annual hourly burden to comply with the recordkeeping requirements in 31 CFR 1020.410 is 100 hours per bank.

10,062 banks ^[53] multiplied by 100 hours results in a total annual hourly burden estimate of 1,006,200 hours.

Total Annual PRA Burden for OMB Control Number 1506-0059: 1,006,200 hours.

Total Annual PRA Burden for OMB Control Numbers 1506-0058 and 1506-0059.

FinCEN's estimate of the total annual PRA burden (5,022,039 hours) includes each of the recordkeeping requirements being renewed in this notice, detailed in table 2 below:

Table 2—Distribution of Estimated Total Annual Burden Hours per Requirement by Type of Affected Financial Institutions

Regulatory requirement	Affected financial institution type	Number of financial institutions	Annual burden estimate per financial institution in hours	Total annual burden hours per regulatory requirement
31 CFR 1010.410(a)—(c)	Financial institutions as defined in 31 CFR 1010.100(t), excluding agent MSBs	44,671	50	2,233,550
	Financial institutions as defined in 31 CFR 1010.100(t) that are exclusively agent MSBs	229,161	5	1,145,805
31 CFR 1010.410(e)	MSBs that conduct money transmission	16,897	16	270,352
31 CFR 1010.410(f)	Banks and MSBs the conduct money transmission	26,959	12	323,508
( print page 65977)
31 CFR 1022.420	MSBs that are providers or sellers of prepaid access	2,664	16	42,624
31 CFR 1020.410	Banks	10,062	100	1,006,200
Total annual burden hours			5,022,039

FinCEN is utilizing the same fully loaded composite hourly wage rate of $106.30 utilized in the 2024 notices of proposed rulemaking (NPRMs) entitled Customer Identification Programs for Registered Investment Advisers and Exempt Reporting Companies and Anti-Money Laundering and Countering the Financing of Terrorism Programs, as well as in recent 60-Day Notices to renew OMB control numbers corresponding to specific BSA regulations.^[54]

The total estimated cost of the annual PRA burden is $533,842,745.70, as reflected in table 3 below:

Table 3—Estimated Total Cost of Annual PRA Burden

Regulatory requirement	Burden hours	Wage rate	Total cost
31 CFR 1010.410(a)-(c)	3,379,355	$106.30	$359,225,436.50
31 CFR 1010.410(e)	270,352	106.30	28,738,417.60
31 CFR 1010.410(f)	323,508	106.30	34,388,900.40
31 CFR 1022.420	42,624	106.30	4,530,931.20
31 CFR 1020.410	1,006,200	106.30	106,959,060.00
Total annual cost			533,842,745.70