Customer Identification Program Regulatory Requirements for Futures Commission Merchants and Introducing Brokers in Commodities

ICR 202408-1506-002

OMB: 1506-0022

Federal Form Document

Forms and Documents
Document
Name
Status
Supporting Statement A
2024-08-29
ICR Details
1506-0022 202408-1506-002
Received in OIRA 202011-1506-002
TREAS/FINCEN
Customer Identification Program Regulatory Requirements for Futures Commission Merchants and Introducing Brokers in Commodities
Extension without change of a currently approved collection   No
Regular 08/30/2024
  Requested Previously Approved
36 Months From Approved 09/30/2024
558,908 1,165
38,344 12,815
0 0

31 U.S.C. 5318(l) requires the Secretary to issue regulations prescribing minimum standards for customer identification programs (CIPs) for financial institutions. Regulations implementing section 5318(l) are as follows: (i) banks (31 CFR 1020.220); (ii) brokers-dealers (31 CFR 1023.220); (iii) mutual funds (31 CFR 1024.220); and (iv) futures commission merchants and introducing brokers in commodities (31 CFR 1026.220). Under the CIP regulations, the minimum requirements include: 1) implementation of a written customer identification program appropriate for the financial institution’s size and type of business; 2) identity verification procedures; 3) recordkeeping; 4) comparison with government lists; and 5) customer notice. This information collection applies to CIP requirements for futures commission merchants and introducing brokers in commodities.

US Code: 31 USC 5318 Name of Law: Money and Finance
  
None

Not associated with rulemaking

  89 FR 51940 06/20/2024
89 FR 70690 08/30/2024
Yes

  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 558,908 1,165 0 0 557,743 0
Annual Time Burden (Hours) 38,344 12,815 0 0 25,529 0
Annual Cost Burden (Dollars) 0 0 0 0 0 0
No
No
The estimated total annual burden hours increased from 12,815 hours since the last control number renewal in 2020 to 38,344 hours in 2024. The burden estimates for maintenance (10 hours) and notification (one hour) of CIP remained the same in the 2020 and the 2024 renewals. However, the implementation of CIP increased from two minutes per account in 2020 to three minutes per account in 2024. The number of futures commission merchants and introducing brokers in commodities in the 2020 renewal was 1,165 and the number of futures commission merchants and introducing brokers in commodities in 2024 is 954. The primary reason for the increase in burden is because FinCEN was able to obtain an estimate of the number of new accounts opened per year by futures commission merchants and introducing brokers in commodities (557,000 accounts) for the 2024 renewal. FinCEN did not have this estimate for futures commission merchants and introducing brokers in commodities in the 2020 renewal, so in 2024 there is an increase in burden hours for futures commission merchants and introducing brokers in commodities applicable to CIP implementation of 27,850 hours.

$0
No
    No
    No
No
No
No
No
FinCEN Resource Center 800 767-2825 [email protected]

  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:
 
 
 
 
 
 
 
    (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;
 
 
 
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.
08/30/2024


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