Renewal Without Change of Information Collection Requirements in Connection With the Imposition of a Special Measure Concerning Banco Delta Asia, Including Its Subsidiaries Delta Asia Credit Limited and Delta Asia Insurance Limited, as a Financial Institution of Primary Money Laundering Concern
| Published date | 08 October 2019 |
| Record Number | 2019-21891 |
| Section | Notices |
| Court | Financial Crimes Enforcement Network |
Federal Register, Volume 84 Issue 195 (Tuesday, October 8, 2019)
[Federal Register Volume 84, Number 195 (Tuesday, October 8, 2019)]
[Notices]
[Pages 53829-53830]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21891]
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DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Renewal Without Change of Information Collection Requirements in
Connection With the Imposition of a Special Measure Concerning Banco
Delta Asia, Including Its Subsidiaries Delta Asia Credit Limited and
Delta Asia Insurance Limited, as a Financial Institution of Primary
Money Laundering Concern
AGENCY: Financial Crimes Enforcement Network (``FinCEN''), Treasury.
ACTION: Notice and request for comments.
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SUMMARY: As part of a continuing effort to reduce paperwork and
respondent burden, FinCEN invites comment on a renewal, without change,
to information collection requirements finalized on March 19, 2007,
imposing a special measure with respect to Banco Delta Asia, including
its subsidiaries Delta Asia Credit Limited and Delta Asia Insurance
Limited, as a financial institution of primary money laundering
concern. This request for comments is being made pursuant to the
Paperwork Reduction Act of 1995.
DATES: Written comments are welcome and must be received on or before
December 9, 2019.
ADDRESSES: Comments may be submitted by any of the following methods:
Federal E-rulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments. Refer to Docket Number
FINCEN-2019-0004 and the specific Office of Management and Budget (OMB)
control number 1506-0045.
Mail: Global Investigation Division, Financial Crimes
Enforcement Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket
Number FINCEN-2019-0004 and OMB control number 1506-0045.
Please submit comments by one method only. Comments will also be
incorporated to FinCEN's retrospective regulatory review process, as
mandated by E.O. 12866 and 13563. All comments submitted in response to
this notice will become a matter of public record. Therefore, you
should submit only information that you wish to make publicly
available.
FOR FURTHER INFORMATION CONTACT: FinCEN Resource Center at 1-800-767-
2825 or 1-703-905-3591 (not a toll free number) and select option 3 for
regulatory questions. Email inquiries can be sent to [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
a. Statutory Provisions
On October 26, 2001, the President signed into law the Uniting and
Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 (the
USA PATRIOT Act). Title III of the USA PATRIOT Act amended the anti-
money laundering (AML) provisions of the Bank Secrecy Act (BSA),
codified at 12 U.S.C. 1829b, 12 U.S.C. 1951-1959, and 31 U.S.C. 5311-
5314, 5316-5332, to promote the prevention, detection, and prosecution
of international money laundering and the financing of terrorism.
Regulations implementing the BSA appear at 31 CFR Chapter X. The
authority of the Secretary of the Treasury (the Secretary) to
administer the BSA and its implementing regulations has been delegated
to the Director of FinCEN.\1\
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\1\ Therefore, references to the authority of the Secretary of
the Treasury under Section 311 of the USA PATRIOT Act apply equally
to the Director of FinCEN.
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Section 311 of the USA PATRIOT Act (Section 311), codified at 31
U.S.C. 5318A, grants FinCEN the authority, upon finding that reasonable
grounds exist for concluding that a foreign jurisdiction, financial
institution, class of transactions, or type of account is of ``primary
money laundering concern,'' to require domestic financial institutions
and financial agencies to take certain ``special measures'' to address
the primary money laundering concern.
FinCEN may impose one or more of these special measures in order to
protect the U.S. financial system from these threats. Special measures
one through four, codified at 31 U.S.C. 5318A(b)(1)-(b)(4), impose
additional recordkeeping, information collection, and reporting
requirements on covered U.S. financial institutions. The fifth special
measure, codified at 31 U.S.C. 5318A(b)(5), allows FinCEN to impose
prohibitions or conditions on the opening or maintenance of certain
correspondent accounts.
b. Overview of the Current Regulatory Provisions Regarding Special
Measures Concerning Banco Delta Asia, Including Its Subsidiaries Delta
Asia Credit Limited and Delta Asia Insurance Limited
On March 19, 2007, FinCEN issued a final rule imposing the fifth
special measure to prohibit covered financial institutions from opening
or maintaining a correspondent account for, or on behalf of, Banco
Delta Asia, including its subsidiaries Delta Asia Credit Limited and
Delta Asia Insurance
[[Page 53830]]
Limited.\2\ The rule further requires covered financial institutions to
apply due diligence to their correspondent accounts that is reasonably
designed to guard against their indirect use by Banco Delta Asia. See
31 CFR 1010.655.
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\2\ See 72 FR 12730, RIN 1506-AA83
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Information Collection Under the Fifth Special Measure
The notification requirement in section 1010.655(b)(2)(i)(A) is
intended to aid cooperation from correspondent account holders in
denying Banco Delta Asia, including its subsidiaries Delta Asia Credit
Limited and Delta Asia Insurance Limited, access to the U.S. financial
system. The information required to be maintained by section
1010.655(b)(3)(i) will be used by federal agencies and certain self-
regulatory organizations to verify compliance by covered financial
institutions with the provisions of 31 CFR 1010.655.
II. Paperwork Reduction Act (PRA)
Title: Renewal of Information Collection Requirements in connection
with the Imposition of a Special Measure concerning Banco Delta Asia,
including its subsidiaries Delta Asia Credit Limited and Delta Asia
Insurance Limited, as a financial institution of Primary Money
Laundering Concern.
Office of Management and Budget (OMB) Control Number: 1506-0045.
Abstract: FinCEN is issuing this notice to renew the OMB control
number for the imposition of a special measure concerning Banco Delta
Asia, including its subsidiaries Delta Asia Credit Limited and Delta
Asia Insurance Limited, as a financial institution of primary money
laundering concern pursuant to the authority contained in 31 U.S.C.
5318A. See 31 CFR 1010.655.
Type of Review: Renewal without change of a currently approved
collection.
Affected Public: Businesses and certain not-for-profit
institutions.
Frequency: One time notification. See 31 CFR 1010.655(b)(2)(i)(A)
and 1010.655(b)(3)(i).
Estimated Number of Respondents: 23,615.\3\
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\3\ The above Estimated Number of Respondents is based on sum of
the following numbers:
5,358 banks [Federal Deposit Insurance Corporation, Key
Statistics web page, April 25, 2019];
5,375 federally-insured credit unions [National Credit
Union Administration, Quarterly Credit Union Data Summary, December
31, 2018];
125 privately-insured credit unions [General
Accountability Office, PRIVATE DEPOSIT INUSRANCE: Credit Unions
Largely Complied with Disclosure Rules, but Rules Should Be
Clarified, March 2017];
1,130 introducing brokers [National Futures Association
website, March 31, 2019];
64 futures commission merchants [National Futures
Association website, March 31, 2019];
3,607 securities firms [Financial Industry Regulatory
Authority website, December 31, 2018]; and,
7,956 U.S. mutual funds [Investment Company Institute,
2018 Factbook, 2018].
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Estimated Time per Respondent: 1 hour.
Estimated Total Annual Burden: 23,615 hours.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a valid
OMB control number. Records required to be retained under the BSA must
be retained for five years. Generally, information collected pursuant
to the BSA is confidential, but may be shared as provided by law with
regulatory and law enforcement authorities.
When the final rule was published in March 2007, the number of
financial institutions affected by the rule was estimated at 5,000.
FinCEN has since revised the estimated number of affected financial
institutions upward to account for all domestic financial institutions
that could potentially maintain correspondent accounts for foreign
banks, and recognizing that, under the final rule, covered financial
institutions are required to apply due diligence to their correspondent
accounts that is reasonably designed to guard against their indirect
use by Banco Delta Asia..
There are approximately 23,615 such financial institutions doing
business in the United States. As noted, this revision should not have
a significant impact on a substantial number of small entities.
Request for Comments: Comments submitted in response to this notice
will be summarized and/or included in the request for OMB approval. All
comments will become a matter of public record. Comments are invited
on: (a) Whether the collection of information is necessary for the
proper performance of the functions of the agency, including whether
the information shall have practical utility; (b) the accuracy of the
agency's estimate of the burden of the collection of information; (c)
ways to enhance the quality, utility, and clarity of the information to
be collected; (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology; and (e)
estimates of capital or start-up costs and costs of operation,
maintenance and purchase of services to provide information.
Authority: Pub. L. 104-13, 44 U.S.C. 3506(c)(2)(A)
Jamal El-Hindi,
Deputy Director, Financial Crimes Enforcement Network.
[FR Doc. 2019-21891 Filed 10-7-19; 8:45 am]
BILLING CODE 4810-02-P
