Beneficial Ownership Requirements for Legal Entity Customers

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
Form CDD Certificate Customer Due Diligence Certificate	Form and Instruction	Modified	Available
Form CDD Certificate Customer identification, verification, and review and recordkeeping of the beneficial ownership information	Form and Instruction	Modified	Repair queued
1506-0070-Benefcial Ownership Supporting Statement 4_30_2024 Final.docx	Supporting Statement A	Uploaded 2024-04-30	Repair queued

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
267219	Update and maintain beneficial ownership identification procedures		New
221319	Customer identification, verification, and review and recordkeeping of the beneficial ownership information	Form and Instruction	Modified	Customer Due Diligence Certificate
221319	Customer identification, verification, and review and recordkeeping of the beneficial ownership information	Form and Instruction	Modified

ICR Details

OMB Control No: 1506-0070	ICR Reference No: 202404-1506-004
Status: Active	Previous ICR Reference No: 202010-1506-006
Agency/Subagency: TREAS/FINCEN	Agency Tracking No:
Title: Beneficial Ownership Requirements for Legal Entity Customers
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 09/24/2024
Retrieve Notice of Action (NOA)	Date Received in OIRA: 04/30/2024
Terms of Clearance: FinCEN and OIRA will continue to work together on a comprehensive analysis of the cost and benefits of its various collections.

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	09/30/2027	36 Months From Approved	09/30/2024
Responses	5,723,096	0	9,068,250
Time Burden (Hours)	7,615,574	0	12,190,880
Cost Burden (Dollars)	0	0	0

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Abstract: Subject to certain exclusions and exemptions, 31 CFR 1010.230 requires covered financial institutions to establish and maintain written procedures that are reasonably designed to identify and verify beneficial owners of new accounts opened by legal entity customers and to include such procedures in their AML programs. Covered financial institutions may obtain the required identifying information by either obtaining a prescribed certification form from the individual opening the account on behalf of the legal entity customer, or by obtaining from the individual the information required by the form by another means, provided the individual certifies to the best of the individual’s knowledge the accuracy of the information. Covered financial institutions must verify the identity of each beneficial owner identified according to risk-based procedures and may rely on the information supplied by the legal entity customer regarding the identity of its beneficial owner or owners, provided that it has no knowledge of facts that would reasonably call into question the reliability of such information. Covered financial institutions must also maintain a record of the identifying information obtained, and a description of any document relied on for verification, including a description of any non-documentary methods and results of any measures undertaken, and the resolutions of substantive discrepancies. Covered financial institutions must retain records used to identify each beneficial owner for five years after the date the account is closed and must also retain records used to verify the identity of each beneficial owner for five years after the record is made.

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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

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	89 FR 14148	02/26/2024
30-day Notice:	Federal Register Citation:	Citation Date:
	89 FR 33467	04/29/2024
Did the Agency receive public comments on this ICR? Yes

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Number of Information Collection (IC) in this ICR: 2

table that charts list of burden

IC Title	Form No.	Form Name
Customer identification, verification, and review and recordkeeping of the beneficial ownership information	CDD Certificate	Customer Due Diligence Certificate
Update and maintain beneficial ownership identification procedures

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ICR Summary of Burden

table that charts list 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	5,723,096	9,068,250	0	0	-3,345,154	0
Annual Time Burden (Hours)	7,615,574	12,190,880	0	0	-4,575,306	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

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

Burden Increase Due to:

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

Burden Reduction Due to:

Short Statement: The estimated total annual burden hours in this OMB control number were last revised when FinCEN issued a final rule in September 2020 on anti-money laundering programs for banks that lack a Federal functional regulator. At that time, the total annual burden hours were estimated at 12,190,880 hours. The estimated total annual burden hours are decreasing to 7,615,574 hours in this renewal because the estimated number of respondents decreased from 24,182 covered financial institutions in 2020 to 15,221 covered financial institutions in 2024. The primary reason for the decrease in the number of covered financial institutions is that the SEC provided FinCEN more current estimates of the number of mutual funds. In 2020, FinCEN estimated that there were 7,956 mutual funds. In 2024, the SEC reported that there are 1,495 mutual funds.

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Annual Cost to Federal Government: $0

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.     No

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: 04/30/2024

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