Customer Due Diligence Requirements for Financial Institutions

Forms and Documents

Document Name	Status
Form CDD Certificate Customer Due Diligence Requirements for Financial Institutions Form and Instruction	New
2016 CDD Summary of comments and response to public comments-FR clean .docx Supplementary Document	2016-05-11
CDD AML 0070-86i Supporting Statement 6.15.16.doc Supporting Statement A	2016-06-15

IC Document Collections

IC ID	Document Title	Status
221319	Customer Due Diligence Requirements for Financial Institutions Form and Instruction	New

ICR Details

OMB Control No: 1506-0070	ICR Reference No: 201605-1506-001
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: TREAS/FINCEN	Agency Tracking No:
Title: Customer Due Diligence Requirements for Financial Institutions
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 05/12/2016
OIRA Conclusion Action: Approved without change	Conclusion Date: 06/24/2016
	Date Received in OIRA: 05/12/2016
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	12/31/2016	6 Months From Approved
Responses	10,843,875	0	0
Time Burden (Hours)	7,041,290	0	0
Cost Burden (Dollars)	0	0	0

---

Abstract: : FinCEN is issuing final rules under the Bank Secrecy Act to clarify and strengthen customer due diligence requirements for: banks; brokers or dealers in securities; mutual funds; and futures commission merchants and introducing brokers in commodities. The rules contain explicit customer due diligence requirements and include a new requirement to identify and verify the identity of beneficial owners of legal entity customers, subject to certain exclusions and exemptions.

Emergency Justfication: Final Rule was published in the Federal Register today, effective in 60 days

---

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

---

Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1506-AB25	Final or interim final rulemaking	81 FR 29398	05/11/2016

---

Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	79 FR 45151	08/04/2014
Did the Agency receive public comments on this ICR? Yes

---

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

IC Title	Form No.	Form Name
Customer Due Diligence Requirements for Financial Institutions	CDD Certificate	Customer Due Diligence Certificate

---

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	10,843,875	0	0	10,843,875	0	0
Annual Time Burden (Hours)	7,041,290	0	0	7,041,290	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

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

Burden Reduction Due to:

Short Statement: This is a new requirement. The burden reflected is an estimate based on observation and public comments.

---

Annual Cost to Federal Government:

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

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? 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

---

Common Form ICR:  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:

(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: 05/12/2016

---