Anti-Money Laundering Regulations for Residential Real Estate Transfers

Forms and Documents

Document Name	Status
RRE Supporting Statement_08_29_2024_FINAL.docx Supporting Statement A	2024-08-29

IC Document Collections

IC ID	Document Title	Status
265249	Reports of residential real property transfers	Modified

ICR Details

OMB Control No: 1506-0080	ICR Reference No: 202408-1506-006
Status: Received in OIRA	Previous ICR Reference No: 202402-1506-003
Agency/Subagency: TREAS/FINCEN	Agency Tracking No:
Title: Anti-Money Laundering Regulations for Residential Real Estate Transfers
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: 08/30/2024

	Requested	Previously Approved
Expiration Date	36 Months From Approved
Responses	850,000	0
Time Burden (Hours)	4,604,167	0
Cost Burden (Dollars)	0	0

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Abstract: The Financial Crimes Enforcement Network (FinCEN) is submitting this information collection request for OMB approval of a collection of information in the final rule it is issuing under the authority of the Bank Secrecy Act (BSA). In this rule FinCEN requires certain domestic financial institutions to file specific reports and keep specific records about certain transfers of residential real estate. The U.S. Department of the Treasury (Treasury) has long recognized the illicit finance risks posed by abuse of the U.S. residential real estate market and by legal entities and trusts used by criminals and corrupt officials to launder ill-gotten gains through transfers of residential real estate. FinCEN’s rule focuses on a particular class of activity that is high-risk for money laundering and that warrants reporting on a transaction-specific basis. The rule requires certain persons involved in real estate closings and settlements to submit reports and keep records on certain non-financed transfers of residential real property to certain legal entities and trusts. The reports would enhance transparency in the U.S. residential real estate market and assist Treasury, law enforcement, and national security agencies in protecting U.S. economic and national security interests. The rule describes the circumstances in which a report would be required to be filed, who would file a report, what information would be provided, and when the report would be due.

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Authorizing Statute(s): US Code: 31 USC 5311-5314 and 5316-5336 Name of Law: The Bank Secrecy Act
   US Code: 12 USC 1829b and 1951-1960 Name of Law: The 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-AB54	Final or interim final rulemaking	89 FR 70258	08/29/2024

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? Yes

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

IC Title	Form No.	Form Name
Reports of residential real property transfers

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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	850,000	0	0	850,000	0	0
Annual Time Burden (Hours)	4,604,167	0	0	4,604,167	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 final rule, which imposes requirements that create new burden on respondents.

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Annual Cost to Federal Government: $8,500,000

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: 08/30/2024

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