Beneficial Ownership Requirements for Legal Entity Customers

Forms and Documents

Document Name	Status
Form CDD Certificate Beneficial Ownership Requirements for Legal Entity Customers Form and Instruction	Modified
1506-0070 Beneficial Ownership Supporting Statement 3-19-2020.docx Supporting Statement A	2020-03-24
2016 CDD Summary of comments and response to public comments-FR clean .docx Supplementary Document	2016-05-11

IC Document Collections

IC ID	Document Title	Status
221319	Beneficial Ownership Requirements for Legal Entity Customers Form and Instruction	Modified

ICR Details

OMB Control No: 1506-0070	ICR Reference No: 202003-1506-001
Status: Historical Active	Previous ICR Reference No: 201612-1506-001
Agency/Subagency: TREAS/FINCEN	Agency Tracking No:
Title: Beneficial Ownership Requirements for Legal Entity Customers
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 05/06/2020
	Date Received in OIRA: 03/30/2020
Terms of Clearance: 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
Expiration Date	05/31/2023	36 Months From Approved	05/31/2020
Responses	8,855,625	0	10,843,875
Time Burden (Hours)	11,884,700	0	7,041,290
Cost Burden (Dollars)	0	0	0

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Abstract: 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.

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Authorizing Statute(s): US Code: 31 USC 5318(h) Name of Law: Money and Finance
  

Citations for New Statutory Requirements: US Code: 31 USC 5318(h) Name of Law: Money and Finance

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	84 FR 72137	12/30/2019
30-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 17379	03/27/2020
Did the Agency receive public comments on this ICR? Yes

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Beneficial Ownership Requirements for Legal Entity Customers	CDD Certificate	Customer Due Diligence Certificate

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	8,855,625	10,843,875	0	0	-1,988,250	0
Annual Time Burden (Hours)	11,884,700	7,041,290	0	0	4,843,410	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: 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).

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 03/30/2020

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