Anti-Money Laundering Programs for Insurance Companies, Non-Bank Residential Mortgage Lenders and Originators, and Banks Lacking a Federal Functional Regulator
ICR 202010-1506-011 · OMB 1506-0035 · Active
⚠️ Notice: This information collection may be outdated. More recent filings for OMB 1506-0035 can be found here:
Anti-Money Laundering Programs for Insurance Companies, Non-Bank Residential Mortgage Lenders and Originators, and Banks Lacking a Federal Functional Regulator
Extension without change of a currently approved collection
FinCEN is working with OIRA to more accurately quantify the compliance costs of programs it overseas under the Bank Secrecy Act.
Inventory as of this Action
Requested
Previously Approved
12/31/2023
36 Months From Approved
10/31/2023
32,767
0
32,767
38,227
0
33,334
0
0
0
Section 352 of the USA PATRIOT Act added subsection (h) to 31 U.S.C. 5318 of the BSA that requires the Secretary of the Treasury to require financial institutions to establish and maintain anti-money laundering (âAMLâ) programs. Pursuant to section 352, FinCEN issued regulations requiring insurance companies and non-bank residential mortgage lenders and originators (âRMLOsâ) to develop and implement a written AML program. The program must be reasonably designed to prevent these financial institutions from being used for money laundering or the financing of terrorist activities, and to achieve and monitor compliance with applicable BSA requirements.
On September 14, 2020, FinCEN issued a final rule implementing sections 352, 326 and 312 of the USA PATRIOT Act and removing the AML program exemption for banks that lack a Federal functional regulator, including, but not limited to, private banks, non-federally insured credit unions, and certain trust companies (the âFinal Ruleâ). The Final Rule requires minimum standards for AML programs for banks without a Federal functional regulator to ensure that all banks, regardless of whether they are subject to Federal regulation and oversight, are required to establish and implement AML programs, and extends customer identification program requirements and beneficial ownership requirements to those banks not already subject to these requirements.
In 2018 the estimated total burden hours was 32,000. The increase in the estimated burden hours in this renewal is a result of the inclusion of 567 banks that lack a Federal functional regulator, and the inclusion of the estimate of 5 minutes per respondent to store the written AML program and 5 minutes per respondent to produce the written AML program upon request.
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.
1506-0035 AML Prog-Supporting Statement- 20201029.docx
Anti-Money Laundering Programs for Insurance Companies, Non-bank Residential Mortgage Lenders and Originators, and Banks Lacking a Federal Functional Regulator