Due Diligence Programs for Correspondent Accounts for Foreign Financial Institutions and for Private Banking Accounts
Extension without change of a currently approved collection
No
Regular
08/30/2024
Requested
Previously Approved
36 Months From Approved
09/30/2024
16,232
16,938
32,464
33,876
0
0
Section 312 of the USA PATRIOT Act added subsection (i) to 31 U.S.C. 5318 of the BSA. Section 312 mandates that each financial institution that establishes, maintains, administers, or manages a private banking account or a correspondent account in the United States for non-U.S. persons establish appropriate, specific, and, where necessary, enhanced, due diligence policies, procedures, and controls that are reasonably designed to detect and report instances of money laundering through those accounts. The regulations implementing the due diligence requirements for maintaining foreign correspondent accounts and private banking accounts are found at 31 CFR 1010.610 and 31 CFR 1010.620, respectively, and apply to covered financial institutions, defined as certain banks, brokers or dealers in securities, futures commission merchants, introducing brokers in commodities, and mutual funds.
The estimated total annual burden hours decreased from 33,876 hours in the 2020 renewal of this control number to 32,464 hours in 2024. The estimated burden to maintain and update a due diligence program remained at two hours per covered financial institution. The decrease in burden is a result of a decrease in the estimated number of covered financial institutions from 16,938 in the 2020 renewal of this control number to 16,232 in 2024.
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.
1506-0046-312 Due Dilgence Supporting Statement 8_27_2024 - Final.docx
Due Diligence Programs for Correspondent Accounts for Foreign Financial Institutions and for Private Banking Accounts.