1550-0041 (Supporting Statement)

SUPPORTING STATEMENT FOR
PROCEDURES FOR MONITORING BANK SECRECY ACT
OMB Control No. 1550-0041

A.

JUSTIFICATION
1.

Circumstances and Need

Section 1359 of the Anti-Drug Abuse Act of 1986, Pub. L. No. 99-570 (“Act”), required
the former Federal Home Loan Bank Board (“FHLBB”) to provide by regulation for the
establishment and maintenance of procedures by savings associations for compliance with the
currency reporting requirements of the Bank Secrecy Act (“BSA”) and the U.S. Department of
Treasury regulation 31 CFR part 103. Because the Office of Thrift Supervision (“OTS”) is now
charged with the responsibility to examine savings association procedures periodically to ensure
their effectiveness, OTS is therefore subject to compliance with the Act. See 12 CFR 563.177
and 563.180. The Act’s requirement that savings associations establish written BSA compliance
procedures is a one-time event, but revisions to those procedures must occur as deemed
necessary.
2.

Use of Information Collected

OTS examiners review the written procedures during regularly scheduled examinations
in order to ensure the implementation of adequate systems for complying with the BSA and its
implementing regulations.
3.

Use of Technology

The requirement for associations to develop written policies and procedures does not
involve data application. Consequently, the use of automated, electronic, other technological
collection techniques, or other forms of information technology is not applicable.
4.

Efforts to Identify Duplication

This information collection is not duplicative within the meaning of the PRA and OMB
regulations. Information that is similar to or that corresponds to information that could serve
OTS's purpose and need in this information collection is not being collected by any other means
or for any other purpose; nor is this information otherwise available in the detail necessary to
satisfy the purpose and need for which this collection of information is undertaken. Each
association’s policies and procedures will address its own compliance with the currency
reporting requirements of the BSA and 31 CFR part 103.

5.

Minimizing the Burden on Small Firms

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The information collection does not differentiate information requirements on the basis of
an association’s size because the Act is applicable to all financial institutions. Nonetheless, the
information collection does not have a significant impact on a substantial number of small
businesses.
6.

Consequences of Less Frequent Collection

The requirement for written policies and procedures is addressed as part of a BSA
compliance program that is approved by the association’s board of directors. Annually, the
board of directors must review their current operating plan and consider whether the BSA
program needs to be updated. If the review occurred less frequently, the procedures would not
reflect current operations.
7.

Special Circumstances

The information collection is conducted in a manner consistent with the guidelines set
forth in 5 CFR 1320.5(d)(2).
8.

Consultation with Persons Outside OTS

Notice of intent to renew this information collection was published in the Federal
Register on January 9, 2007 (71 FR 1059). OTS received no comments.
9.

Payment of Respondents

OTS does not provide any payment or gifts to respondents.
10.

Confidentiality

BSA policies and procedures are created and maintained at individual institutions;
therefore, the assurance of confidentiality is not applicable.
11.

Information of a Sensitive Nature

There are no questions of a sensitive nature.
12.

Estimate of Annual Hour Burden

Estimates for the hour burden of information collection are as follows: the burden
estimate for the Bank Secrecy Act program is 23,520 hours. This is based on an average of 28
hours per year for each of the 840 savings associations regulated by OTS. The estimate is based
on the time needed, if any, for the association to update and maintain its BSA policies and
procedures.

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OTS estimates the annualized cost to each respondent is approximately $1,400
($1,176,000 total for all institutions combined). We base this estimate on 28 hours per year for
each respondent to update the BSA program, times per hour average of $50. The per hour
average cost represents a mixture of management and clerical personnel. The requirement for a
BSA program has been in effect since 1987; therefore, it is presumed that savings associations
have such a program.
13.

Estimate of Annual Cost

There are no start-up costs related to this information collection. The operational or
maintenance costs are minimal and are dependent on whether the savings association modifies its
policies and procedures.
14.

Estimate of Annual Cost to Government

The total annualized cost to the Federal government is minimal. OTS examiners review
the information during the course of regularly scheduled examinations, and review of the
institutions’ BSA policies and procedures constitutes a minimal part of those overall
examinations.
15.

Reason for Change in Burden

The burden hours for this information collection decreased 2,319 hours (from 25,839 to
23,520 hours). This is due to the reduction in the number of respondent savings associations
(from 891 to 840).
16.

Publication

The information collection is not published.
17.

Expiration Date

OTS seeks not to display the expiration date because there is no form on which to display
the expiration date.
18.

Exceptions

There are no exceptions to the certifications on OMB 83-I.

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B.

COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS
Not applicable.