2014 Reports by casinos and card clubs of currency transactions SUPPORTING STATEMENT (2)

Supporting Statement

OMB Control Number 1506-0005

Reports of Transactions in Currency by Casinos and Card Clubs

1. Circumstances Necessitating Collection of Information

The statute generally referred to as the “Bank Secrecy Act,” Titles I and II of Public Law 91-508, as amended, codified at 12 U.S.C. 1829b, 12 U.S.C. 1951-1959, and 31 U.S.C. 5311-5332, authorizes the Secretary of the Treasury, among other things, to require financial institutions to keep records and file reports that are determined to have a high degree of usefulness in criminal, tax, and regulatory matters, or in the conduct of intelligence or counter-intelligence activities, to protect against international terrorism, and to implement anti-money laundering programs and compliance procedures.¹ Regulations implementing Title II of the Bank Secrecy Act appear at 31 CFR Chapter X. The authority of the Secretary to administer the Bank Secrecy Act has been delegated to the Director of the Financial Crimes Enforcement Network (FinCEN).

31 CFR 1021.310 set forth the rules for the reporting by casinos and card clubs of transactions in currency. Each casino and card club should refer to subpart C of its chapter X part for any additional transactions in currency reporting requirements.

2. Method of Collection and Use of Data.

Information about currency transactions conducted or attempted by, at, through, or otherwise involving a casino and card club are collected through the filing of a currency transaction report (CTR) by the casino and card club with FinCEN. FinCEN provides on-line access to the information collected to representatives of the federal regulators and appropriate law enforcement agencies. FinCEN and law enforcement agencies use the information on CTRs for criminal investigation and prosecution purposes.

3. Use of Improved Information Technology to Reduce Burden.

By using FinCEN’s computerized filing system (BSA E-filing), a casino or card club can reduce the time required for its compliance staff to complete the report. Discrete and batch versions are available on the FinCEN BSA E-File web site at http://bsaefiling.fincen.treas.gov/main.html.

4. Efforts to Identify Duplication.

There is no similar information available; thus, there is no duplication.

5. Methods to Minimize Burden on Small Businesses or Other Small Entities.

The design of the CTR minimizes the time required to complete the report and thus the impact on small businesses.

6. Consequences to the Federal Government of Not Collecting the Information.

With the automated CTR reporting system, Federal regulators, law enforcement, and industry alike benefit from improved detection of financial crime, analysis of trends, and coordination of investigative efforts. If CTRs were no longer required, law enforcement and regulatory efforts to fight crime and protect the safety and soundness of casinos and card clubs would be severely hampered.

7. Special Circumstances Requiring Data Collection Inconsistent with Guidelines.

The reporting of currency transactions on a CTR may occur more frequently than quarterly, depending on the frequency of the activity. For reasons explained in paragraph 6 above, this information must be reported in a timely manner to enable law enforcement to take appropriate investigative action. Records must be kept more than 3 years because substantive violations of the law that may be indicated by the activity reported on the CTR are generally subject to statutes of limitations longer than 3 years.

8. Consultation with Individuals Outside of the Agency on Availability of Data, Frequency of Collection, Clarity of Instructions and Forms, and Data Elements.

On September 18, 2014, FinCEN issued a notice and request for comment to renew without change this regulatory requirement (See 79 FR 56123). We received one comment letter in response to the Federal Register notice. The comment suggested enhancements to the currency transaction report, but was not directed at the subject of this notice: the renewal without change to the currency transaction reporting regulation. Accordingly, FinCEN will take the recommended enhancement under advisement during the renewal of the unified currency transaction report. Further, FinCEN will review the request for guidance on acceptance of ID’s to determine if guidance is warranted. FinCEN believes that the current instructions for multiple vs aggregated transactions are adequate.

9. Payments or Gifts.

No payments or gifts were made to respondents.

10. Assurance of Confidentiality of Responses.

Information provided to the government on the CTR is expressly prohibited from disclosure under 31 U.S.C. 5318(g)(2), and the participating agencies' Privacy Act notices make clear that the system of records is intended for the official use of law enforcement and bank regulators. Appropriate system security safeguards have been put in place to protect against unauthorized access.

11. Justification of Sensitive Questions.

There are no questions of a sensitive nature in the collection of information. Any personally identifiable information collected under the BSA is strictly controlled as outlined in the FinCEN’s Systems of Records Notice http://www.fincen.gov/foia/files/FinCEN_79_FR_20969.pdf.

12. Estimated Annual Hourly Burden.

The administrative burden of 1 hour is assigned to maintain the regulatory requirement in force. The burden for actual reporting is reflected in OMB Control number 1506–0064.

13. Estimated Annual Cost to Respondents for Hourly Burdens.

Not applicable.

14. Estimated Annualized Cost to Federal Government.

Not applicable.

15. Reasons for change in Burden.

There is no change in burden.

16. Plans for Tabulation, Statistical Analysis and Publication.

Not applicable.

17. Request not to Display Expiration Date of OMB Control Number.

To avoid having to reprint the form just to show a new date, FinCEN is requesting permission not to display the OMB expiration date on the SAR form.

18. Exceptions.

There are no exceptions to the certification statement.

1 Language expanding the scope of the Bank Secrecy Act to intelligence or counter-intelligence activities to protect against international terrorism was added by Section 358 of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, P.L. 107-56.

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