Federal Register / Vol. 89, No. 38 / Monday, February 26, 2024 / Notices 14145 

submit this data using the Monthly 

Home Loan Activity Format form in 

Appendix I to part 27 and the Home 

Loan Data Submission Form in 

Appendix IV to part 27 except that there 

is an additional exclusion for national 

banks with fewer than 75 applications. 

Specifically, § 27.7(c)(3) states that a 

bank with fewer than 75 home loan 

applications in the preceding year is not 

required to submit such forms unless 

the home loan activity is concentrated 

in the few months preceding the request 

for data, indicating the likelihood of 

increased activity over the subsequent 

year, or there is cause to believe that a 

bank is not in compliance with the fair 

housing laws based on prior 

examinations and/or complaints, among 

other factors. 

Section 27.7(d) provides that if there 

is cause to believe that a national bank 

is in noncompliance with fair housing 

laws, the Comptroller may require 

submission of additional Home Loan 

Data Submission Forms. The 

Comptroller may also require 

submission of the information 

maintained under § 27.3(a) and Home 

Loan Data Submission Forms at more 

frequent intervals than specified. 

Burden Estimates: 

Estimated Number of Respondents: 

702. 

Estimated Total Annual Burden: 

12,632 hours. 

Comments: On December 15, 2023, 

the OCC published a 60-day notice for 

this information collection, 88 FR 

87052. No comments were received. 

Comments continue to be invited on: 

(a) Whether the collection of 

information is necessary for the proper 

performance of the functions of the 

OCC, including whether the information 

has practical utility; 

(b) The accuracy of the OCC’s 

estimate of the burden of the collection 

of information; 

(c) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

(d) Ways to minimize the burden of 

the collection on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology; and 

(e) Estimates of capital or start-up 

costs and costs of operation, 

maintenance, and purchase of services 

to provide information. 

Theodore J. Dowd, 

Deputy Chief Counsel, Office of the 

Comptroller of the Currency. 

[FR Doc. 2024–03855 Filed 2–23–24; 8:45 am] 

BILLING CODE 4810–33–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

Agency Information Collection 

Activities: Information Collection 

Renewal; Submission for OMB Review; 

OCC Guidelines Establishing 

Heightened Standards for Certain 

Large Insured National Banks, Insured 

Federal Savings Associations, and 

Insured Federal Branches 

AGENCY: Office of the Comptroller of the 

Currency (OCC), Treasury. 

ACTION: Notice and request for comment. 

SUMMARY: The OCC, as part of its 

continuing effort to reduce paperwork 

and respondent burden, invites 

comment on a continuing information 

collection, as required by the Paperwork 

Reduction Act of 1995 (PRA). In 

accordance with the requirements of the 

PRA, the OCC may not conduct or 

sponsor, and the respondent is not 

required to respond to, an information 

collection unless it displays a currently 

valid Office of Management and Budget 

(OMB) control number. The OCC is 

soliciting comment concerning the 

renewal of its information collection 

titled, ‘‘OCC Guidelines Establishing 

Heightened Standards for Certain Large 

Insured National Banks, Insured Federal 

Savings Associations, and Insured 

Federal Branches.’’ The OCC also is 

giving notice that it has sent the 

collection to OMB for review. 

DATES: Comments must be received by 

March 27, 2024. 

ADDRESSES: Commenters are encouraged 

to submit comments by email, if 

possible. You may submit comments by 

any of the following methods: 

• Email: prainfo@occ.treas.gov. 

• Mail: Chief Counsel’s Office, 

Attention: Comment Processing, Office 

of the Comptroller of the Currency, 

Attention: 1557–0321, 400 7th Street 

SW, Suite 3E–218, Washington, DC 

20219. 

• Hand Delivery/Courier: 400 7th 

Street SW, Suite 3E–218, Washington, 

DC 20219. 

• Fax: (571) 293–4835. 

Instructions: You must include 

‘‘OCC’’ as the agency name and ‘‘1557– 

0321’’ in your comment. In general, the 

OCC will publish comments on 

www.reginfo.gov without change, 

including any business or personal 

information provided, such as name and 

address information, email addresses, or 

phone numbers. Comments received, 

including attachments and other 

supporting materials, are part of the 

public record and subject to public 

disclosure. Do not include any 

information in your comment or 

supporting materials that you consider 

confidential or inappropriate for public 

disclosure. 

Written comments and 

recommendations for the proposed 

information collection should also be 

sent within 30 days of publication of 

this notice to www.reginfo.gov/public/ 

do/PRAMain. You can find this 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. 

You may review comments and other 

related materials that pertain to this 

information collection following the 

close of the 30-day comment period for 

this notice by the method set forth in 

the next bullet. 

• Viewing Comments Electronically: 

Go to www.reginfo.gov. Hover over the 

‘‘Information Collection Review’’ tab 

and click on ‘‘Information Collection 

Review’’ from the drop-down menu. 

From the ‘‘Currently under Review’’ 

drop-down menu, select ‘‘Department of 

Treasury’’ and then click ‘‘submit.’’ This 

information collection can be located by 

searching OMB control number ‘‘1557– 

0321’’ or ‘‘OCC Guidelines Establishing 

Heightened Standards for Certain Large 

Insured National Banks, Insured Federal 

Savings Associations, and Insured 

Federal Branches.’’ Upon finding the 

appropriate information collection, click 

on the related ‘‘ICR Reference Number.’’ 

On the next screen, select ‘‘View 

Supporting Statement and Other 

Documents’’ and then click on the link 

to any comment listed at the bottom of 

the screen. 

• For assistance in navigating 

www.reginfo.gov, please contact the 

Regulatory Information Service Center 

at (202) 482–7340. 

FOR FURTHER INFORMATION CONTACT: 

Shaquita Merritt, Clearance Officer, 

(202) 649–5490, Chief Counsel’s Office, 

Office of the Comptroller of the 

Currency, 400 7th Street SW, 

Washington, DC 20219. If you are deaf, 

hard of hearing, or have a speech 

disability, please dial 7–1–1 to access 

telecommunications relay services. 

SUPPLEMENTARY INFORMATION: Under the 

PRA (44 U.S.C. 3501 et seq.), Federal 

agencies must obtain approval from the 

OMB for each collection of information 

that they conduct or sponsor. 

‘‘Collection of information’’ is defined 

in 44 U.S.C. 3502(3) and 5 CFR 

1320.3(c) to include agency requests or 

requirements that members of the public 

submit reports, keep records, or provide 

information to a third party. The OCC 


khammond on DSKJM1Z7X2PROD with NOTICES
14146 Federal Register / Vol. 89, No. 38 / Monday, February 26, 2024 / Notices 

1 79 FR 54518. 

2 12 U.S.C. 1831p–1. Section 39 was enacted as 

part of the Federal Deposit Insurance Corporation 

Improvement Act of 1991, Public Law 102–242, 

section 132(a), 105 Stat. 2236, 2267–70. 

asks the OMB to extend its approval of 

the collection in this notice. 

Title: OCC Guidelines Establishing 

Heightened Standards for Certain Large 

Insured National Banks, Insured Federal 

Savings Associations, and Insured 

Federal Branches. 

OMB Control No.: 1557–0321. 

Type of Review: Regular. 

Affected Public: Businesses or other 

for-profit. 

Description: The OCC’s guidelines, 

codified in 12 CFR part 30, appendix D, 

establish minimum standards for the 

design and implementation of a risk 

governance framework for insured 

national banks, insured Federal savings 

associations, and insured Federal 

branches of a foreign bank (banks). The 

guidelines apply to covered banks. A 

covered bank is a bank with average 

total consolidated assets: (i) equal to or 

greater than $50 billion; (ii) less than 

$50 billion if that bank’s parent 

company controls at least one insured 

national bank or insured Federal savings 

association that has average total 

consolidated assets of $50 billion or 

greater; or (iii) less than $50 billion, if 

the OCC determines such bank’s 

operations are highly complex or 

otherwise present a heightened risk as 

to warrant the application of the 

guidelines. The guidelines also establish 

minimum standards for a board of 

directors in overseeing the framework’s 

design and implementation. These 

guidelines were finalized on September 

11, 2014.1 The OCC is now seeking to 

renew the information collection 

associated with these guidelines. The 

standards contained in the guidelines 

are enforceable under section 39 of the 

Federal Deposit Insurance Act (FDIA),2

which authorizes the OCC to prescribe 

operational and managerial standards 

for insured national banks, insured 

Federal savings associations, and 

insured Federal branches of a foreign 

bank. 

The guidelines formalize the OCC’s 

heightened expectations program. The 

guidelines also further the goal of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act of 2010 to 

strengthen the financial system by 

focusing management and boards of 

directors on improving and 

strengthening risk management 

practices and governance, thereby 

minimizing the probability and impact 

of future financial crises. The standards 

for the design and implementation of 

the risk governance framework, which 

contain collections of information, are 

as follows: 

Standards for Risk Governance 

Framework 

Covered banks should establish and 

adhere to a formal, written risk 

governance framework designed by 

independent risk management. The 

framework should include delegations 

of authority from the board of directors 

to management committees and 

executive officers and risk limits for 

material activities. The framework 

should be approved by the board of 

directors or the board’s risk committee, 

and it should be reviewed and updated, 

at least annually, by independent risk 

management. 

Front Line Units 

Front line units should take 

responsibility and be held accountable 

by the chief executive officer (CEO) and 

the board of directors for appropriately 

assessing and effectively managing the 

risks associated with their activities. In 

fulfilling this responsibility, each front 

line unit should, either alone or in 

conjunction with another organizational 

unit that has the purpose of assisting a 

front line unit: (i) assess, on an ongoing 

basis, the material risks associated with 

its activities and use such risk 

assessments as the basis for fulfilling its 

responsibilities and for determining if 

actions need to be taken to strengthen 

risk management or reduce risk given 

changes in the unit’s risk profile or 

other conditions; and (ii) establish and 

adhere to a set of written policies that 

include front line unit risk limits. Such 

policies should ensure that risks 

associated with the front line unit’s 

activities are effectively identified, 

measured, monitored, and controlled, 

consistent with the covered bank’s risk 

appetite statement, concentration risk 

limits, and all policies established 

within the risk governance framework. 

Front line units should also establish 

and adhere to procedures and processes, 

as necessary to maintain compliance 

with the policies described in (ii). 

Furthermore, front line units should 

adhere to all applicable policies, 

procedures, and processes established 

by independent risk management. Front 

line units should also develop, attract, 

and retain talent and maintain staffing 

levels required to carry out the unit’s 

role and responsibilities effectively; 

establish and adhere to talent 

management processes; and establish 

and adhere to compensation and 

performance management programs. 

Independent Risk Management 

Independent risk management should 

oversee the covered bank’s risk-taking 

activities and assess risks and issues 

independent of the front line units. In 

fulfilling these responsibilities, 

independent risk management should: 

(i) take responsibility and be held 

responsible by the CEO and the board of 

directors for designing a comprehensive 

written risk governance framework that 

meets the guidelines and is 

commensurate with the size, 

complexity, and risk profile of the 

covered bank; (ii) identify and assess, on 

an ongoing basis, the covered bank’s 

material aggregate risks and use such 

risk assessments as the basis for 

fulfilling its responsibilities and for 

determining if actions need to be taken 

to strengthen risk management or 

reduce risk given changes in the covered 

bank’s risk profile or other conditions; 

(iii) establish and adhere to enterprise 

policies that include concentration risk 

limits that state how aggregate risks 

within the covered bank are effectively 

identified, measured, monitored, and 

controlled, consistent with the covered 

bank’s risk appetite statement and all 

policies and processes established 

within the risk governance framework; 

(iv) establish and adhere to procedures 

and processes, as necessary, to ensure 

compliance with policies in (iii); (v) 

identify and communicate to the CEO 

and either the board of directors or the 

board’s risk committee any material 

risks and significant instances where the 

independent risk management’s 

assessment of risk differs from that of a 

front line unit and any significant 

instances where a front line unit is not 

adhering to the risk governance 

framework; (vi) identify and 

communicate to the board of directors 

or the board’s risk committee material 

risks and significant instances where 

independent risk management’s 

assessment of risk differs from that of 

the CEO and significant instances where 

the CEO is not adhering to, or not 

holding front line units accountable for 

adhering to, the risk governance 

framework; and (vii) develop, attract, 

and retain talent and maintain the 

staffing levels required to carry out the 

unit’s role and responsibilities 

effectively while establishing and 

adhering to talent management 

processes and compensation and 

performance management programs. 

Internal Audit 

Internal audit should ensure that the 

covered bank’s risk governance 

framework complies with the guidelines 

and is appropriate for the size, 


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Federal Register / Vol. 89, No. 38 / Monday, February 26, 2024 / Notices 14147 

complexity, and risk profile of the 

covered bank. It should maintain a 

complete and current inventory of the 

covered bank’s material processes, 

product lines, services, and functions 

and assess the risks, including emerging 

risks, associated with each. These risks 

collectively provide a basis for the audit 

plan. Internal audit should establish and 

adhere to an audit plan that: (i) is 

periodically reviewed and updated; (ii) 

takes into account the covered bank’s 

risk profile, emerging risks, and issues; 

and (iii) establishes the frequency with 

which activities should be audited. The 

audit plan should require internal audit 

to evaluate the adequacy of and 

compliance with policies, procedures, 

and processes established by front line 

units and independent risk management 

under the risk governance framework. 

Significant changes to the audit plan 

should be communicated to the board’s 

audit committee. Internal audit should 

report, in writing, conclusions, material 

issues, and recommendations from audit 

work carried out under the audit plan to 

the board’s audit committee. Reports 

should identify the root cause of any 

material issues and include: (i) a 

determination of whether the root cause 

creates an issue that has an impact on 

one or more organizational units within 

the covered bank; and (ii) a 

determination of the effectiveness of 

front line units and independent risk 

management in identifying and 

resolving issues in a timely manner. 

Internal audit should establish and 

adhere to processes for independently 

assessing the design and ongoing 

effectiveness of the risk governance 

framework on at least an annual basis. 

The independent assessment should 

include a conclusion on the covered 

bank’s compliance with the standards 

set forth in the guidelines. Internal audit 

should identify and communicate to the 

board’s audit committee significant 

instances where front line units or 

independent risk management are not 

adhering to the risk governance 

framework. Internal audit should 

establish a quality assurance program 

that ensures internal audit’s policies, 

procedures, and processes: (i) comply 

with applicable regulatory and industry 

guidance; (ii) are appropriate for the 

size, complexity, and risk profile of the 

covered bank; (iii) are updated to reflect 

changes to internal and external risk 

factors, emerging risks, and 

improvements in industry internal audit 

practices; and (iv) are consistently 

followed. Internal audit should develop, 

attract, and retain talent and maintain 

staffing levels required to effectively 

carry out its role and responsibilities. 

Internal audit should establish and 

adhere to talent management processes 

and compensation and performance 

management programs that comply with 

the guidelines. 

Strategic Plan 

The CEO, with input from front line 

units, independent risk management, 

and internal audit, should be 

responsible for the development of a 

written strategic plan that covers, at a 

minimum, a three-year period. The 

board of directors should evaluate and 

approve the plan and monitor 

management’s efforts to implement the 

strategic plan at least annually. The plan 

should: (i) include a comprehensive 

assessment of risks that currently 

impact the covered bank or that could 

have an impact on the covered bank 

during the period covered by the 

strategic plan; (ii) articulate an overall 

mission statement and strategic 

objectives for the covered bank with an 

explanation of how the covered bank 

will update the risk governance 

framework to account for changes to its 

risk profile projected under the strategic 

plan; and (iii) be reviewed, updated, 

and approved due to changes in the 

covered bank’s risk profile or operating 

environment that were not 

contemplated when the plan was 

developed. 

Risk Appetite Statement 

A covered bank should have a 

comprehensive written statement that 

articulates its risk appetite and serves as 

the basis for the risk governance 

framework. The statement should 

contain both qualitative components 

that describe a safe and sound risk 

culture and how the covered bank will 

assess and accept risks and quantitative 

limits that include sound stress testing 

processes and address earnings, capital, 

and liquidity. 

Risk Limit Breaches 

A covered bank should establish and 

adhere to processes that require front 

line units and independent risk 

management to: (i) identify breaches of 

the risk appetite statement, 

concentration risk limits, and front line 

unit risk limits; (ii) distinguish breaches 

based on the severity of their impact; 

(iii) establish protocols for when and 

how to inform the board of directors, 

front line unit management, 

independent risk management, internal 

audit, and the OCC regarding a breach; 

(iv) provide a written description of the 

breach resolution; and (v) establish 

accountability for reporting and 

resolving breaches that include 

consequences for risk limit breaches 

that take into account the magnitude, 

frequency, and recurrence of breaches. 

Concentration Risk Management 

The risk governance framework 

should include policies and supporting 

processes appropriate for the covered 

bank’s size, complexity, and risk profile 

for effectively identifying, measuring, 

monitoring, and controlling the covered 

bank’s concentrations of risk. 

Risk Data Aggregation and Reporting 

The risk governance framework 

should include a set of policies, 

supported by appropriate procedures 

and processes, designed to provide risk 

data aggregation and reporting 

capabilities appropriate for the covered 

bank’s size, complexity, and risk profile 

and to support supervisory reporting 

requirements. Collectively, these 

policies, procedures, and processes 

should provide for: (i) the design, 

implementation, and maintenance of a 

data architecture and information 

technology infrastructure that support 

the covered bank’s risk aggregation and 

reporting needs during normal times 

and during times of stress; (ii) the 

capturing and aggregating of risk data 

and reporting of material risks, 

concentrations, and emerging risks in a 

timely manner to the board of directors 

and the OCC; and (iii) the distribution 

of risk reports to all relevant parties at 

a frequency that meets their needs for 

decision-making purposes. 

Talent and Compensation Management 

A covered bank should establish and 

adhere to processes for talent 

development, recruitment, and 

succession planning. The board of 

directors or appropriate committee 

should review and approve a written 

talent management program. A covered 

bank should also establish and adhere to 

compensation and performance 

management programs that comply with 

any applicable statute or regulation. 

Board of Directors Training and 

Evaluation 

The board of directors of a covered 

bank should establish and adhere to a 

formal, ongoing training program for all 

directors. The board of directors should 

also conduct an annual self-assessment. 

Burden Estimates: 

Estimated Number of Respondents: 

27. 

Estimated Burden per Respondent: 

3,776 hours. 

Estimated Total Annual Burden: 

101,952 hours. 

Comments: On December 13, 2023, 

the OCC published a 60-day notice for 


khammond on DSKJM1Z7X2PROD with NOTICES
14148 Federal Register / Vol. 89, No. 38 / Monday, February 26, 2024 / Notices 

1USA PATRIOT Act, Public Law 107–56. 

2The AML Act was enacted as Division F, 

sections 6001–6511, of the William M. (Mac) 

Thornberry National Defense Authorization Act for 

Fiscal Year 2021, Public Law 116–283, 134 Stat. 

3388 (NDAA). 

3Section 358 of the USA PATRIOT Act expanded 

the purpose of the BSA by including a reference to 

reports and records ‘‘that have a high degree of 

usefulness in intelligence or counterintelligence 

activities to protect against international terrorism.’’ 

See 12 U.S.C. 1829b(a). Section 6101 of the AML 

Act further expanded the purpose of the BSA to 

cover such matters as preventing money laundering, 

tracking illicit funds, assessing risk, and 

establishing appropriate frameworks for 

information sharing. See 31 U.S.C. 5311. 

4Treasury Order 180–01 (Jan. 14, 2020). 

5Covered financial institutions include certain 

banks, brokers or dealers in securities, mutual 

funds, futures commission merchants, and 

introducing brokers in commodities. See 31 CFR 

1010.230(f), 1010.605(e)(1). 

this information collection, (88 FR 

86445). No comments were received. 

Comments continue to be invited on: 

(a) Whether the collection of 

information is necessary for the proper 

performance of the functions of the 

OCC, including whether the information 

has practical utility; 

(b) The accuracy of the OCC’s 

estimate of the burden of the collection 

of information; 

(c) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

(d) Ways to minimize the burden of 

the collection on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology; and 

(e) Estimates of capital or start-up 

costs and costs of operation, 

maintenance, and purchase of services 

to provide information. 

Theodore J. Dowd, 

Deputy Chief Counsel, Office of the 

Comptroller of the Currency. 

[FR Doc. 2024–03816 Filed 2–23–24; 8:45 am] 

BILLING CODE 4810–33–P 

DEPARTMENT OF THE TREASURY 

Financial Crimes Enforcement Network 

Agency Information Collection 

Activities; Proposed Renewal; 

Comment Request; Renewal Without 

Change of the Beneficial Ownership 

Requirements for Legal Entity 

Customers 

AGENCY: Financial Crimes Enforcement 

Network (FinCEN), Treasury. 

ACTION: Notice and request for 

comments. 

SUMMARY: As part of its continuing effort 

to reduce paperwork and respondent 

burden, FinCEN invites comment on a 

renewal, without change, of existing 

information collection requirements 

related to beneficial ownership 

requirements for legal entity customers. 

Under Bank Secrecy Act regulations, 

covered financial institutions are 

required to collect, and to maintain 

records of, the information used to 

identify and verify the identity of each 

beneficial owner of their legal entity 

customers, subject to certain exclusions 

and exemptions. This request for 

comment is made pursuant to the 

Paperwork Reduction Act of 1995 

(PRA). 

DATES: Written comments are welcome 

and must be received on or before April 

26, 2024. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

• Federal E-rulemaking Portal: 

https://www.regulations.gov. Follow the 

instructions for submitting comments. 

Refer to Docket Number FINCEN–2024– 

0008 and the specific Office of 

Management and Budget (OMB) control 

number 1506–0070. 

• Mail: Policy Division, Financial 

Crimes Enforcement Network, P.O. Box 

39, Vienna, VA 22183. Refer to Docket 

Number FINCEN–2024–0008 and OMB 

control number 1506–0070. 

Please submit comments by one 

method only. Comments will be 

reviewed consistent with the PRA and 

applicable OMB regulations and 

guidance. All comments submitted in 

response to this notice will become a 

matter of public record. Therefore, you 

should submit only information that 

you wish to make publicly available. 

FOR FURTHER INFORMATION CONTACT: 

FinCEN’s Regulatory Support Section at 

1–800–767–2825 or electronically at 

frc@fincen.gov. 

SUPPLEMENTARY INFORMATION: 

I. Statutory and Regulatory Provisions 

The legislative framework generally 

referred to as the Bank Secrecy Act 

(BSA) consists of the Currency and 

Foreign Transactions Reporting Act of 

1970, as amended by the Uniting and 

Strengthening America by Providing 

Appropriate Tools Required to Intercept 

and Obstruct Terrorism Act of 2001 

(USA PATRIOT Act) 1 and other 

legislation, including the Anti-Money 

Laundering Act of 2020 (AML Act).2

The BSA is codified at 12 U.S.C. 1829b 

and 1951–1960 and 31 U.S.C. 5311– 

5314 and 5316–5336, and notes thereto, 

with implementing regulations at 31 

CFR Chapter X. 

The BSA authorizes the Secretary of 

the Treasury (Secretary) to, inter alia, 

require financial institutions to keep 

records and file reports that are 

determined to have a high degree of 

usefulness in criminal, tax, or regulatory 

matters, risk assessments or 

proceedings, or in the conduct of 

intelligence or counter-intelligence 

activities to protect against terrorism, 

and to implement anti-money 

laundering (AML) programs and 

compliance procedures.3 The authority 

of the Secretary to administer the BSA 

has been delegated to the Director of 

FinCEN.4

Subject to certain exclusions and 

exemptions, 31 CFR 1010.230 requires 

covered financial institutions 5 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. 

As required by section 6403(d) of the 

Corporate Transparency Act (CTA), 

which was enacted as part of the AML 

Act, FinCEN intends to revise the 

requirements of 31 CFR 1010.230 to 

bring them into conformance with the 


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