Requirements for Certain Transactions Involving Convertible Virtual Currency (CVC) or Digital Assets

Forms and Documents

Document Name	Status
1506-NEW Supporting Statement - CVC NPRM Draft 2020-12-23 (FinCEN).docx Supporting Statement A	2020-12-23

IC Document Collections

IC ID	Document Title	Status
245089	Recordkeeping and Verification Requirements Related to CVC and LTDA (MSBs)	New
245088	Recordkeeping and Verification Requirements Related to CVC and LTDA (Banks)	New
245087	Reporting Requirement Related to CVC and LTDA (MSBs)	New
245086	Reporting Requirement Related to CVC and LTDA (Banks)	New

ICR Details

OMB Control No:	ICR Reference No: 202012-1506-001
Status: Received in OIRA	Previous ICR Reference No:
Agency/Subagency: TREAS/FINCEN	Agency Tracking No:
Title: Requirements for Certain Transactions Involving Convertible Virtual Currency (CVC) or Digital Assets
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 12/23/2020

	Requested	Previously Approved
Expiration Date	36 Months From Approved
Responses	21,814	0
Time Burden (Hours)	1,284,349	0
Cost Burden (Dollars)	0	0

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Abstract: FinCEN has issued a Notice of Proposed Rulemaking (Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets (31 CFR Chapter X)) that proposes the imposition of recordkeeping, verification, and reporting requirements for certain deposits, withdrawals, exchanges, or other payments or transfers of CVC or digital assets with legal tender status (LTDA) by, through, or to a bank or money service business (MSB) that also involve an unhosted wallet or a wallet hosted in certain foreign jurisdictions. The benefits of the proposed rule include enhanced law enforcement ability to investigate, prosecute, and disrupt the financing of international terrorism and other priority transnational security threats, as well as other types of financial crime, by obtaining improved visibility into financial flows into unhosted wallets and improved attribution of CVC transactions involving unhosted or otherwise covered wallets. FinCEN believes that the collection of CVC and LTDA indicators will significantly enhance law enforcement’s and regulators’ ability to leverage blockchain analytics to obtain attribution and move investigations forward in an expeditious manner.

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Authorizing Statute(s): PL: Pub.L. 91 - 508 Titles I and II Name of Law: Bank Secrecy Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1506-AB47	Proposed rulemaking	85 FR 83840	12/23/2020

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 4

IC Title	Form No.	Form Name
Reporting Requirement Related to CVC and LTDA (Banks)
Reporting Requirement Related to CVC and LTDA (MSBs)
Recordkeeping and Verification Requirements Related to CVC and LTDA (Banks)
Recordkeeping and Verification Requirements Related to CVC and LTDA (MSBs)

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ICR Summary of Burden

	Total Request	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	21,814	0	0	21,814	0	0
Annual Time Burden (Hours)	1,284,349	0	0	1,284,349	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: These are new requirements due to a proposed rule.

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Annual Cost to Federal Government: $79,900

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     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? No

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Common Form ICR:  No

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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: 12/23/2020

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