Prohibition on Correspondent
Accounts for Foreign Shell Banks; Records Concerning Owners of
Foreign Banks and Agents for Service of Legal Process
Extension without change of a currently approved collection
No
Regular
04/29/2022
Requested
Previously Approved
36 Months From Approved
04/30/2022
17,392
27,000
260,880
306,000
0
0
31 U.S.C. 5318(j) prohibits covered
financial institutions from maintaining correspondent accounts in
the United States for, or on behalf of, foreign banks that do not
have a physical presence in any country. In addition, under 31
U.S.C. 5318(k), a covered financial institution maintaining a
correspondent account in the United States for a foreign bank must
retain records identifying (i) the owners of record and the
beneficial owners of the foreign bank, and (ii) the name and
address of a person residing in the United States who is authorized
to accept service of legal process for the foreign bank. The
regulations implementing 31 U.S.C. 5318(j) and 31 U.S.C. 5318(k)
appear at 31 CFR 1010.630.
The estimated total annual
burden hours decreased from 306,000 hours in 2018 to 260,880 hours
in 2022. When FinCEN renewed OMB control number 1506-0043 in 2018
it estimated that 2,000 covered financial institutions would obtain
and maintain 9,000 certification and recertification forms from
foreign banks, and estimated the burden per
certification/recertification form would be 34 hours per form. In
2022, FinCEN estimated that 8,696 covered financial institutions
would obtain and maintain 17,392 certification and recertification
forms from foreign banks, and estimated the burden per
certification/recertification form would be 15 hours per form. In
2018, the estimate included an annual estimate of the following
three items: (i) 20 hours to complete a certification for a foreign
bank; (ii) 5 hours to complete a recertification for a foreign
bank; and (iii) 9 hours to maintain records on the foreign bank’s
certification/recertification. In 2022, FinCEN revised its estimate
to incorporate the recordkeeping component of the burden estimate
within the certification and recertification process. FinCEN also
revised its assessment of the time necessary to conduct a
recertification, as the process is identical to a certification.
For those reasons, FinCEN is estimating the burden for a
certification and corresponding recordkeeping is 15 hours; and the
burden for a recertification and corresponding recordkeeping is
also 15 hours. The decrease in burden is a combination of an
increase in the estimated number of certification/recertification
forms from 9,000 in 2018 to 17,392 in 2022 and a decrease in the
estimated burden per certification/recertification form from 34
hours per form in 2018 to 15 hours per form in 2022.
$0
No
No
No
No
No
No
No
FinCEN Resource Center 800
767-2825 frc@fincen.gov
No
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.
1506-0043 Foreign Shell Bank Cert- Supporting Statement 04182022 Final.docx
Prohibition on Correspondent Accounts for Foreign Shell Banks; Records Concerning Owners of Foreign Banks and Agents for Service of Legal Process