FinCEN will work with OIRA to develop a more accurate estimate of burden that accounts for the regulatory obligation necessary to produce the reports.
Inventory as of this Action
Requested
Previously Approved
05/31/2023
36 Months From Approved
05/31/2020
8,855,625
0
10,843,875
11,884,700
0
7,041,290
0
0
0
Under 31 CFR 1010.230 covered financial institutions are required to establish and maintain written procedures that are reasonably designed to identify and verify beneficial owners of new accounts opened by legal entity customers and to include such procedures in their AML programs. Covered financial institutions may obtain the required identifying information by either obtaining a prescribed certification form from the individual opening the account on behalf of a legal entity customer, or by obtaining from the individual the information required by the form by another means, provided the individual certifies the accuracy of the information. Covered financial institutions must also maintain a record of the identifying information obtained, and a description of any document relied on, of any non-documentary methods and results of any measures undertaken, and the resolutions of substantive discrepancies.
The estimated total annual burden hours in the Rule were 7,041,289 hours. The estimated total annual burden hours is increasing to 11,884,700 hours in this renewal because FinCEN is increasing its estimate of the burden from an average 30 minutes to an average of 80 minutes per new account opened for a legal entity customer. This estimate accounts for the time it takes to collect, record, verify, and maintain records of beneficial ownership information for each new account opened for a legal entity customer. FinCEN made the decision to increase its burden estimate based on burden estimates of (i) 90 to 120 minutes, and (ii) 40 to over 120 minutes provided by two respondents. The increase in total annual burden hours for this OMB control number, because of the increase in burden associated with each account, is offset by a reduction in burden resulting from the exclusion of burden hours associated with the initial development of beneficial ownership procedures for financial institutions established before May 2018. The Rule recognized a burden of 56 hours per financial institution to develop the initial procedures (40 hours for small entities). Since the compliance date of May 11, 2018 has passed, no burden hours for the development of initial procedures are estimated in this information collection renewal for financial institutions established before May 2018. (See 81 FR 29398, May 11, 2016).
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Form CDD Certificate Beneficial Ownership Requirements for Legal Entity Customers
1506-0070 Beneficial Ownership Supporting Statement 3-19-2020.docx
Beneficial Ownership Requirements for Legal Entity Customers