[Federal Register Volume 87, Number 32 (Wednesday, February 16, 2022)]
[Notices]
[Pages 8935-8941]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-03260]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Agency Information Collection Activities; Proposed Renewal; 
Comment Request; Renewal Without Change of Additional Records To Be 
Made and Retained by Casinos

AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.

ACTION: Notice and request for comments.

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SUMMARY: As part of its continuing effort to reduce paperwork and 
respondent burden, FinCEN invites comments on the proposed renewal, 
without change, of a currently approved information collection found in 
existing Bank Secrecy Act regulations. Specifically, the regulations 
require casinos to secure and maintain a record of the name, permanent 
address, and social security number of each person who deposits funds 
or opens an account at the casino, or to whom the casino extends a line 
of credit. The regulations also require that casinos retain originals 
or copies of specified documents relating to account

[[Page 8936]]

and transaction records. Although no changes are proposed to the 
information collections themselves, this request for comments covers a 
future expansion of the scope of the annual hourly burden and cost 
estimate associated with these regulations. This request for comments 
is made pursuant to the Paperwork Reduction Act of 1995.

DATES: Written comments are welcome, and must be received on or before 
April 18, 2022.

ADDRESSES: Comments may be submitted by any of the following methods:
    <bullet> Federal E-rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments. Refer to Docket Number 
FINCEN-2022-0004 and the specific Office of Management and Budget (OMB) 
control number 1506-0054.
    <bullet> Mail: Policy Division, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2022-0004 and OMB control number 1506-0054.
    Please submit comments by one method only. Comments will be 
reviewed consistent with the Paperwork Reduction Act of 1995 and 
applicable OMB regulations and guidance. 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: The FinCEN Regulatory Support Section 
at 1-800-767-2825 or electronically at <a href="/cdn-cgi/l/email-protection#2640544566404f4845434808414950"><span class="__cf_email__" data-cfemail="6600140526000f0805030848010910">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Statutory and Regulatory Provisions

    The legislative framework generally referred to as the Bank Secrecy 
Act (BSA) consists of the Currency and Financial 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), Public Law 107-56 (October 26, 
2001), and other legislation, including most recently the Anti-Money 
Laundering Act of 2020 (AML Act).\1\ The BSA is codified at 12 U.S.C. 
1829b, 12 U.S.C. 1951-1959, 31 U.S.C. 5311-5314 and 5316-5336, and 
notes thereto, with implementing regulations at 31 CFR chapter X.
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    \1\ The AML Act was enacted as Division F, Sec. Sec.  6001-6511, 
of the William M. (Mac) Thornberry National Defense Authorization 
Act for Fiscal Year 2021, Public Law 116-283, 134 Stat 3388 (2021).
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    The BSA authorizes the Secretary of the Treasury (the Secretary), 
inter alia, to require financial institutions to keep records and file 
reports that are determined to have a high degree of usefulness in 
criminal, tax, and regulatory matters, or in the conduct of 
intelligence or counter-intelligence activities to protect against 
international terrorism, and to implement AML programs and compliance 
procedures.\2\ Regulations implementing the BSA appear at 31 CFR 
chapter X. The authority of the Secretary to administer the BSA has 
been delegated to the Director of FinCEN.\3\
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    \2\ Section 358 of the USA PATRIOT Act added language expanding 
the scope of the BSA to intelligence or counter-intelligence 
activities to protect against international terrorism. Section 6101 
of the AML Act added language further expanding the scope of the BSA 
but did not amend these longstanding purposes.
    \3\ Treasury Order 180-01 (re-affirmed Jan. 14, 2020).
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    With respect to each deposit, account, or line of credit, 31 CFR 
1021.410(a) requires a casino to secure and maintain a record of the 
name, permanent address (``address''), and social security number (SSN) 
of the person involved at the time the funds are deposited, the account 
is opened, or credit is extended.\4\ Where the deposit, account, or 
line of credit is in the name of two or more persons, the casino must 
secure the name, address, and SSN of each person having a financial 
interest in the deposit, account, or line of credit. The casino is 
required to verify the name and address of such person(s) at the time 
the deposit is made, the account is opened, or credit is extended, by 
the examination of a document as described in 31 CFR 1010.312.\5\ The 
specific identifying information relied upon must be recorded by the 
casino in the manner described in 31 CFR 1010.312.\6\ If a casino is 
unable to secure the required SSNs, the casino will not be deemed to be 
in violation of 31 CFR 1021.410 if the casino has made reasonable 
efforts to secure the SSNs and it maintains a list of the names and 
addresses of those persons from whom the casino was unable to obtain 
the SSNs. The casino must make the list available to the Secretary upon 
request. If a person is a nonresident alien, the casino is also 
required to record the person's passport number or a description of 
another government document used to verify his/her identity.
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    \4\ References to ``casinos'' include both ``casinos'' and 
``card clubs,'' as those terms are defined at 31 CFR 1010.100(t)(5) 
and (6).
    \5\ In October 2021, FinCEN granted limited exceptive relief to 
allow casinos and card clubs to use suitable non-documentary methods 
to verify the identity of online customers. See FIN-2021-R001, 
``Exceptive Relief for Casinos from Certain Customer Identity 
Verification Requirements,'' (October 19, 2021), available at 
https://www.fincen.gov/sites/default/files/2021-10/Casino%20Exceptive%20Relief%20101921_0.pdf.
    \6\ 31 CFR 1010.312 requires verification of identity by 
examination of a document generally accepted within the banking 
community as a means of identification when cashing checks for non-
depositors. The document relied upon for verification must be 
recorded.
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    Under 31 CFR 1021.410(b), a casino must retain either the original 
or a copy of each of the following:
    <bullet> A record of each time the casino receives funds for credit 
to or deposit into any person's account, including the name, address, 
and SSN of the person from whom the casino receives the funds, the date 
of receipt of the funds and the amount received. If the person from 
whom the funds were received is a non-resident alien, the casino is 
required to obtain and record the person's passport number or a 
description of another government document used to verify the person's 
identity;
    <bullet> A record of each bookkeeping entry made to a customer's 
deposit or credit account with the casino;
    <bullet> Each statement, ledger card, or other record of each 
deposit or credit account with the casino, showing each transaction in 
or with respect to a customer's account with the casino;
    <bullet> A record of each extension of credit in excess of $2,500, 
the terms and conditions of each such extension of credit, and 
repayments. The record must include the customer's name, address, SSN, 
and the date and amount of the transaction (including repayments). If 
the credit is extended to a non-resident alien, the casino must obtain 
and record the non-resident alien's passport number or a description of 
another government document used to verify identity;
    <bullet> A record of each advice, request or instruction received 
or given by the casino with respect to a transaction involving a 
person, account, or place outside the United States. If the transaction 
is a transfer outside the United States on behalf of a third party, the 
record must include the third party's name, address, SSN, signature, 
and the date and amount of the transaction. If the transaction is a 
transfer received from outside the United States on behalf of a third 
party, the same records must be obtained with regard to the third 
party;
    <bullet> Records prepared or received by the casino in the ordinary 
course of business that would be needed to reconstruct a person's 
deposit or credit account with the casino or that would be needed to 
trace a check deposited with the casino through the casino's records to 
the bank of deposit;
    <bullet> All records, documents, or manuals required to be 
maintained by a casino under state and local laws or

[[Page 8937]]

regulations, and regulations of any governing Indian tribe or tribal 
government;
    <bullet> All records which are prepared or used by a casino to 
monitor a customer's gaming activity;
    <bullet> A separate record containing a list of each transaction 
between the casino and its customers involving the following types of 
instruments having a face value of $3,000 or more: (i) Personal checks; 
(ii) business checks; (iii) official bank checks; (iv) cashier's 
checks; (v) third-party checks; (vi) promissory notes; (vii) traveler's 
checks; and (viii) money orders. The list must contain the time, date, 
and amount of the transaction; the name and address of the customer; 
the type of instrument; the name of the drawee or issuer of the 
instrument; all reference numbers (e.g., casino account number, 
personal check number, etc.); and the name or casino license number of 
the casino employee who conducted the transaction. A casino must place 
applicable transactions on the list in the chronological order in which 
they occur;
    <bullet> A copy of the compliance program described in 31 CFR 
1021.210(b); \7\ and
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    \7\ 31 CFR 1021.410(b)(10) requires each casino to retain a copy 
of the casino's AML compliance program as described in 31 CFR 
1021.210(b). The burden for casinos to comply with 31 CFR 1021.210 
is accounted for and renewed with OMB control number 1506-0051. For 
that reason, FinCEN does not need to estimate burden in this notice 
related to 31 CFR 1021.410(b)(10). See 85 FR 83676, Dec. 22, 2020, 
for the most recent renewal of OMB control number 1506-0051.
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    <bullet> For card clubs only,\8\ records of all currency 
transactions by customers, including, without limitation, records in 
the form of currency transaction logs and multiple currency transaction 
logs, and records of all activity at cages or similar facilities, 
including cage control logs.
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    \8\ 31 CFR 1010.100(t)(5)(iii) clarifies that any reference to 
casino in chapter X, other than in paragraph (t)(5) and (t)(6) of 31 
CFR 1010.100, shall also include reference to a card club, unless 
the provision in question contains specific language varying its 
application to card clubs or excluding card clubs.
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    Under 31 CFR 1021.410(c), casinos that input, store, or retain, in 
whole or in part, for any period of time, any record required to be 
maintained by 31 CFR 1010.410 or 31 CFR 1021.410 on computer disk, 
tape, or other machine-readable media must retain those records in the 
same format.\9\ All indexes, books, programs, record layouts, manuals, 
formats, instructions, file descriptions, and similar materials that 
would enable a person to readily access and review the records 
described in 31 CFR 1010.410 and 31 CFR 1021.410, and that are 
recorded, stored, or retained on computer disk, tape or other machine-
readable media, must be retained for the period of time such records 
are required to be retained.\10\
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    \9\ In addition to 31 CFR 1021.410, casinos are required to 
collect and retain information related to transmittals of funds 
pursuant to 31 CFR 1010.410. The burden for financial institutions 
to comply with 31 CFR 1010.410 is included in OMB control number 
1506-0058. OMB control number 1506-0058 was renewed in 2021, 
following a notice and request for comment published in the Federal 
Register (See 85 FR 84105, Dec. 23, 2020). In the notice, FinCEN 
stipulated that although 31 CFR 1010.410 applies to all financial 
institutions, only certain financial institutions engage in the 
types of transactions described in 31 CFR 1010.410. Casino are one 
of the types of financial institutions that do not typically engage 
in the types of transactions described in 31 CFR 1010.410. Any 
similar type of transaction conducted by a casino is generally 
covered under 31 CFR 1021.410.
    \10\ Pursuant to 31 CFR 1010.430(d), covered financial 
institutions, including casinos, are required to maintain records of 
certain financial transactions for a period of five years.
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II. Paperwork Reduction Act of 1995 (PRA) <SUP>11</SUP>
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    \11\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
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    Title: Additional records to be made and retained by casinos (31 
CFR 1021.410).
    OMB Control Number: 1506-0054.
    Report Number: Not applicable.
    Abstract: FinCEN is issuing this notice to renew the OMB control 
number for regulations requiring additional records to be made and 
retained by casinos.
    Affected Public: Businesses or other for-profit institutions.
    Type of Review:
    <bullet> Renewal without change of a currently approved information 
collection.
    <bullet> Propose for review and comment a renewal of the portion of 
the PRA burden that has been subject to notice and comment in the past 
(the ``traditional annual PRA burden'').
    <bullet> Propose for review and comment a future expansion of the 
scope of the PRA burden (the ``supplemental annual PRA burden'').
    Frequency: As required.
    Estimated Number of Respondents: 993 casinos.\12\
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    \12\ Table 1 below sets forth a breakdown of the types of 
casinos covered by this notice.
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    Estimated Recordkeeping Burden: In Part 1 of this notice, FinCEN 
describes the breakdown of the estimated number of casinos, by type. In 
Part 2, FinCEN proposes for review and comment a renewal of the 
estimate of the traditional annual PRA hourly burden, which includes a 
scope and methodology similar to that used in the past, with the 
incorporation of a more robust cost estimate. The scope and methodology 
used in the past assigned a single combined total annual hourly burden 
estimate, per casino, to multiple recordkeeping requirements within the 
regulations. In Part 3, FinCEN proposes for review and comment a 
methodology to estimate the hourly burden and the cost of a future 
estimate of a supplemental annual PRA burden that includes the burden 
and cost broken down by each unique type of recordkeeping requirement 
covered by the regulations being renewed. The methodology also includes 
identifying estimates of the number of transactions conducted annually, 
per casino that would trigger each unique recordkeeping requirement. 
Finally, in Part 4, FinCEN solicits input from the public about: (a) 
The accuracy of the estimate of the traditional annual PRA burden; (b) 
the method proposed to be more granular in the calculation of burden 
per unique recordkeeping requirement, within the regulations, to 
establish a future supplemental annual PRA burden; (c) the criteria, 
metrics, and most appropriate questions FinCEN should consider when 
researching the information to estimate the future traditional and 
supplemental annual PRA burden, according to the methodology proposed; 
and (d) any other comments about the regulation and the current and 
proposed future hourly burden and cost estimates of these requirements.

[[Page 8938]]

Part 1. Breakdown of the Casinos Covered by This Notice

    The breakdown of casinos, by type, covered by this notice is 
reflected in Table 1 below:

 Table 1--Breakdown of Casinos Covered by This Notice, by Type of Casino
------------------------------------------------------------------------
                                                             Number of
                     Type of casino                           casinos
------------------------------------------------------------------------
Casino..................................................        \13\ 466
Tribal casino...........................................        \14\ 527
                                                         ---------------
    Total number of casinos.............................        \15\ 993
------------------------------------------------------------------------

Part 2. Traditional Annual PRA Burden and Cost

(a) 31 CFR 1021.410(a) and (b)(1)-(9) \16\
    Each casino must secure and maintain a record of the name, address, 
and SSN of each person who deposits funds, opens an account, or obtains 
a line of credit with the casino. Each casino must verify and document 
verification of this information. If a casino is unable to obtain SSNs 
for any of these transactions after making a reasonable effort to do 
so, the casino must maintain a list of the names and addresses of 
persons from whom the casino was unable to obtain SSNs, to be made 
available to the Secretary of Treasury upon request.
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    \13\ According to the numbers provided to FinCEN by the American 
Gaming Association (AGA), there are 466 commercial class casinos as 
of October 20, 2020.
    \14\ According to the numbers provided to FinCEN by the AGA, 
there are 527 tribal properties as of October 20, 2020.
    \15\ According to numbers provided to FinCEN by the AGA, the 
total number of casinos includes 223 commercial and tribal casinos 
in Nevada as of October 20, 2020. This number does not include 
restricted locations, i.e., those with 15 slot machines or fewer. 
See also supra note 8. FinCEN does not have a source to estimate the 
number of card clubs impacted by 31 CFR 1021.410, therefore, the 
number of card clubs is not included in the total estimated number 
of casinos.
    \16\ See supra note 7.
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    Each casino must retain the original or a copy of each of the types 
of records outlined in 31 CFR 1021.410(b)(1)-(9), as described in 
additional detail in Section I above.
    There are practical challenges to (i) determining the total number 
of deposits accepted, accounts opened, or lines of credit extended by 
each casino annually, and (ii) estimating how many records as described 
under 31 CFR 1021.410(b)(1)-(9) are generated by each casino each year. 
Because of these challenges, in the past, FinCEN has generally 
estimated the number of hours it would take for a casino to obtain and 
retain the records described in 31 CFR 1021.410(a) and 31 CFR 
1021.410(b)(1)-(9) as being the same for every casino: 107.5 hours per 
casino.
(b) 31 CFR 1021.410(b)(11)
    31 CFR 1021.410(b)(11) requires each card club \17\ to document 
records of all currency transactions by customers and to retain the 
original or copy or reproduction of all currency transactions logs, 
multiple currency transaction logs, and cage control logs.
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    \17\ See supra note 8.
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    FinCEN does not have a way to estimate the number of cash 
transactions conducted annually per card club. In addition, FinCEN does 
not have a source to estimate the number of card clubs impacted by this 
regulation. For these reasons, in the past, FinCEN has estimated the 
total number of cash transactions conducted by card clubs, in total, 
annually and assessed a burden estimate of 5 minutes per transaction.
(c) 31 CFR 1021.410(c)
    Pursuant to 31 CFR 1021.410(c), casinos must record any of the 
records required to be maintained under 31 CFR 1010.410 and 31 CFR 
1021.410 on computer disk, tape, or other machine-readable media to 
retain those records in same format for five years.
    The records required to be maintained under 31 CFR 1021.410 are 
described in more detail above.\18\ As noted above, FinCEN has no way 
to estimate the volume of transactions described in 31 CFR 1021.410 
that are conducted annually by casinos. For that reason, in the past, 
FinCEN has generally estimated that the annual burden per casino to 
maintain such records in the format described in 31 CFR 1021.410(c) is 
the same for all casinos: 4 hours.
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    \18\ See supra note 9.
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    FinCEN's estimate of the traditional annual PRA burden, therefore, 
is 128,637 hours, as detailed in Table 2 below:

               Table 2--Burden Associated With Each Portion of the Traditional Annual PRA Estimate
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                                             Number of casinos or                                  Total hourly
                 Action                   transactions (see Table 1)             Time                 burden
----------------------------------------------------------------------------------------------------------------
Complying with recordkeeping              993.......................  107.5 hours per casino....       * 106,748
 requirements under 31 CFR 1021.410(a) &
 (b)(1)-(9).
Complying with recordkeeping              215,000 transactions        5 minutes per transaction.        * 17,917
 requirements under 31 CFR                 conducted by card clubs
 1021.410(b)(11).                          in total \19\.
Complying with recordkeeping              993.......................  4 hours per casino........           3,972
 requirements under 31 CFR 1021.410(c).
                                                                                                 ---------------
    Total Hourly Burden.................  ..........................  ..........................         128,637
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* 106,747.5 rounded to 106,748; 17,916.6 round to 17,917.

    To calculate the hourly costs of the burden estimate, FinCEN 
identified six roles and corresponding staff positions involved in 
obtaining and maintain records as required by 31 CFR 1021.410: (i) 
General oversight (providing institution-level process approval); (ii) 
general supervision (providing process oversight); (iii) direct 
supervision (reviewing operational-level work and cross-checking all or 
a sample of the work product against supporting documentation); (iv) 
clerical work (engaging in research and administrative review, and 
recordkeeping); (v) legal compliance (ensuring the records are in legal 
compliance); and (vi) computer support (ensuring records can be 
properly stored and retrieved electronically if necessary).
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    \19\ FinCEN does not have a way to estimate the number of cash 
transactions conducted annually per card club. In addition, FinCEN 
does not have a source to estimate the number of card clubs impacted 
by this regulation. In the past FinCEN estimated the total number of 
cash transactions conducted by card clubs annually was 215,000. 
Because FinCEN does not have a reliable source to estimate the 
number of cash transactions conducted by card clubs annually, and we 
did not receive comments contradicting our estimate of 215,000 cash 
transactions in the last renewal of this regulation, we will 
continue to use this estimate as part of the traditional annual PRA 
burden estimate.
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    FinCEN calculated the fully-loaded hourly wage for each of these 
six roles

[[Page 8939]]

by using the mean wage estimated by the U.S. Bureau of Labor Statistics 
(BLS),\20\ and computing an additional benefits cost as follows:
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    \20\ The U.S. Bureau of Labor Statistics, May 2020 OEWS National 
Industry-Specific Occupational Employment and Wage Estimates 
(bls.gov). The most recent data from the BLS corresponds to May 
2020. For the benefits component of total compensation, see U.S. 
Bureau of Labor Statistics, ``Table 9. Private industry workers, by 
major occupational group: employer costs per hour worked for 
employee compensation and costs as a percentage of total 
compensation'', available at Employer Costs for Employee 
Compensation Historical Tables--June 2021 (bls.gov). The ratio 
between benefits and wages for private industry workers is $10.83 
(hourly benefits)/$25.80 (hourly wages) = 0.42, as of March 2021. 
The benefit factor is 1 plus the benefit/wages ratio, or 1.42. 
Multiplying each hourly wage by the benefit factor produces the 
fully-loaded hourly wage per position.

  Table 3--Fully-Loaded Hourly Wage by Role and BLS Job Position for All Financial Institutions Covered by This
                                                     Notice
----------------------------------------------------------------------------------------------------------------
                                                                         Mean hourly    Benefit    Fully-loaded
               Role                   BLS-code         BLS-name           wage \21\      factor     hourly wage
----------------------------------------------------------------------------------------------------------------
General oversight \22\............      11-1010  Chief Executive \23\         $107.12       1.42         $152.11
General supervision...............      11-3031  Financial Manager...           74.59       1.42          105.92
Direct supervision................      13-1041  Compliance Officer..           35.81       1.42           50.85
Clerical work (research, review,        43-3099  Financial Clerk.....           23.27       1.42           33.04
 and recordkeeping).
Legal compliance..................      23-1010  Lawyers and Judicial           85.66       1.42          121.64
                                                  Law Clerks.
Computer support..................      11-3021  Computer and                   77.77       1.42          110.43
                                                  Information Systems
                                                  Managers.
----------------------------------------------------------------------------------------------------------------

    FinCEN estimates that, in general and on average,\24\ each role 
would spend different amounts of time on each portion of the 
traditional annual PRA burden, as follows:
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    \21\ For each occupation, FinCEN took the average of reported 
mean hourly wage across 9 affected financial industries (as measured 
at the most granular NAICS code available, whether at the 2, 3, 4 or 
5 digit NAICS code; see the BLS May 2020 OEWS National Industry-
Specific Occupational Employment and Wage Estimates (bls.gov)).
    \22\ General oversight may include board of directors/trustees 
approval.
    \23\ Chief executive officer is the highest paid category in the 
BLS Occupational Employment Statistics. For that reason, FinCEN is 
conservatively estimating the highest wage rate available for its 
cost analysis.
    \24\ By ``in general,'' FinCEN means without regard to outliers 
(e.g., casinos that conducted transactions that warrant 
recordkeeping that are uncommonly higher or lower than those of the 
population at large). By ``on average,'' FinCEN means the mean of 
the distribution of each subset of the population.

 Table 4--Weighted Average Hourly Cost of Obtaining and Maintaining the
                 Records Required Under 31 CFR 1021.410
------------------------------------------------------------------------
                                             Time  (%)      Hourly cost
------------------------------------------------------------------------
General Oversight.......................           16.67          $25.35
General Supervision.....................           16.67           17.65
Direct Supervision......................           16.67            8.48
Clerical Work...........................           16.67            5.51
Legal Compliance........................           16.67           20.27
Computer Support........................           16.67           18.41
                                         -------------------------------
    Equal Weighted Average Hourly Cost..  ..............         * 95.67
------------------------------------------------------------------------
* $95.67 rounded to $96.00.

    The total estimated cost of the traditional annual PRA burden is 
$12,349,152, as reflected in Table 5 below:

                              Table 5--Total Cost of Traditional Annual PRA Burden
----------------------------------------------------------------------------------------------------------------
                             Action                                 Hour burden     Hourly cost     Total cost
----------------------------------------------------------------------------------------------------------------
Complying with recordkeeping requirements under 31 CFR                   106,748             $96     $10,247,808
 1021.410(a) & (b)(1)-(9).......................................
Complying with recordkeeping requirements under 31 CFR                    17,917              96       1,720,032
 1021.410(b)(11)................................................
Complying with recordkeeping requirements under 31 CFR                     3,972              96         381,312
 1021.410(c)....................................................
                                                                 -----------------------------------------------
    Total Cost..................................................  ..............  ..............      12,349,152
----------------------------------------------------------------------------------------------------------------

Part 3. Supplemental Annual PRA Burden

    In the future, FinCEN intends to add a supplemental annual PRA 
burden calculation that will include the estimated hourly burden and 
cost to comply with each type of recordkeeping requirement covered by 
the regulations being renewed. The future burden estimate will also 
include estimates of the number of transactions conducted annually by 
casinos that would trigger each recordkeeping requirement. In the 
future, FinCEN intends to obtain an estimate of the number of card 
clubs

[[Page 8940]]

required to comply with 31 CFR 1021.410.
(a) 31 CFR 1021.410(a) and (b)(1)-(9) \25\
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    \25\ See supra note 7.
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    As noted above, there are practical challenges to determining the 
total number of deposits accepted, accounts opened, or lines of credit 
extended by each casino annually. In addition, there are practical 
challenges in estimating how many records, as described under 31 CFR 
1021.410(b)(1)-(9), are generated by each casino each year. In order to 
more accurately estimate the related PRA burden in the future, FinCEN 
intends to obtain a better understanding of the volume of deposits 
accepted, accounts opened, and lines of credit extended per casino and 
across the casino industry in total. In addition, FinCEN intends to 
obtain a better understanding of (i) the volume of records required to 
be made and retained under 31 CFR 1021.410(b)(1)-(9), and (ii) which of 
these records are required to be maintained exclusively for complying 
with the BSA, as opposed to complying with other regulatory 
requirements or for practical business purposes.
(b) 31 CFR 1021.410(b)(11)
    As noted above, FinCEN does not have a way to estimate the number 
of cash transactions conducted annually per card club. In addition, 
FinCEN does not have a source to estimate the number of card clubs 
affected by this regulation. In order to more accurately estimate the 
related PRA burden in the future, FinCEN intends to obtain a better 
understanding of the volume of cash transactions conducted annually per 
card club and across the card club industry in total. In addition, 
FinCEN intends to obtain a better understanding of the population of 
card clubs required to comply with 31 CFR 1021.410.
(c) 31 CFR 1021.410(c)
    As noted above, FinCEN has no way to determine the volume of 
transactions that would trigger one of the recordkeeping requirements 
under 31 CFR 1021.410, and of those transactions, how many would be 
retained on a computer disk, tape, or other machine-readable media. In 
the future, FinCEN intends to obtain a better understanding of the 
volume of transactions that would trigger the recordkeeping 
requirements in 31 CFR 1021.410 per casino, and across the casino 
industry. In addition, FinCEN intends to obtain a better understanding 
of how such records are stored and maintained, and the burden and cost 
associated with storage and maintenance of such records.
    FinCEN does not have the necessary information to provide a 
tentative estimate for these supplemental PRA hourly burdens and costs 
within the current notice. In addition, FinCEN does not have all the 
necessary information to precisely estimate the traditional annual PRA 
burden. For that reason, FinCEN is relying on estimates used in prior 
renewals of this OMB control number and the applicable regulations. 
FinCEN further recognizes that after receiving public comments as a 
result of this notice, future traditional annual PRA hourly burden and 
cost estimates may vary significantly. FinCEN intends to conduct more 
granular studies of the actions included in the proposed scope of the 
supplemental annual PRA burden in the near future, to arrive at more 
precise estimates of net BSA hourly burden and cost.\26\ The data 
obtained in these studies also may result in a significant variation of 
the estimated traditional annual PRA burden.
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    \26\ Net hourly burden and cost are the burden and cost a 
financial institution incurs to comply with requirements that are 
unique to the BSA, and that do not support any other business 
purpose or regulatory obligation of the financial institution. 
Burden for purposes of the PRA does not include the time and 
financial resources needed to comply with an information collection, 
if the time and resources are for things a business (or other 
person) does in the ordinary course of its activities if the agency 
demonstrates that the reporting activities needed to comply are 
usual and customary. 5 CFR 1320.3(b)(2). For example, depending on 
the nature of the casino's transactions and accounts, the casino may 
be collecting and maintaining some of the same information in order 
to satisfy other obligations including (i) protecting the casino 
from fraud against itself or its customers, (ii) complying with 
other non-BSA regulatory requirements, or (iii) improving the 
casino's marketing efforts.
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    Estimated Number of Respondents: 993, as set out in Table 1.\27\
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    \27\ Because FinCEN does not have a reliable source to estimate 
the number of card clubs that would be impacted by this regulation, 
the estimated number of respondents only includes casinos as set out 
in Table 1.
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    Estimated Total Annual Recordkeeping Burden: The estimated total 
annual PRA burden is 128,637 hours, as set out in Table 2.
    Estimated Total Annual Recordkeeping Cost: The estimated total 
annual PRA cost is $12,349,152 as set out in Table 5.
    An Agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection of 
information displays a valid OMB control number. Records required to be 
retained under the BSA must be retained for five years.

Part 4. Request for Comments

    (a) Specific request for comments on the traditional annual PRA 
hourly burden and cost.
    FinCEN invites comments on any aspect of the traditional annual PRA 
burden, as set out in Part 2 of this notice. In particular, FinCEN 
seeks comments on the adequacy of: (i) FinCEN's assumptions underlying 
its estimate of the burden; (ii) the estimated number of hours required 
by each portion of the burden; and (iii) the organizational levels of 
the casinos engaged in each portion of the burden, their estimated 
hourly remuneration, and the estimated proportion of participation by 
each role. FinCEN encourages commenters to include any publicly 
available sources for alternative estimates or methodologies.
    (b) Specific request for comments on the proposed criteria for 
determining the scope of a supplemental annual PRA hourly burden and 
cost estimate.
    FinCEN invites comments on any aspect of the criteria for a future 
estimate of the supplemental annual PRA burden, as set out in Part 3 of 
this notice.
    (c) Specific request for comments on the appropriate criteria and 
methodology required to obtain information to more precisely estimate 
the supplemental annual PRA hourly burden and cost.
    FinCEN invites comments on the most appropriate and comprehensive 
way to ask casinos about the annual hourly burden and cost attributable 
solely to the regulations covered by this notice (i.e., the hourly 
burden and cost of complying with the recordkeeping requirements 
imposed exclusively by the BSA, which are not used to satisfy 
contractual obligations, other regulatory requirements, or business 
purposes of the casino).
    The supplemental annual PRA hourly burden and cost estimate of the 
recordkeeping necessary to comply with the additional recordkeeping 
requirements for casinos must take into consideration the information 
collected and recorded that is used exclusively for complying with 
requirements under 31 CFR 1021.410. Given the complexity in determining 
what portion of the effort to include in the estimate, FinCEN seeks 
comments from the public regarding any questions we should consider 
posing in future notices, in addition to the specific questions for 
comment outlined directly below. Also, due to the evident difficulty 
involved in estimating the number of transaction accounts, lines of 
credit, and transactions that trigger recordkeeping requirements as

[[Page 8941]]

described in this notice FinCEN welcomes any suggestions as to how to 
derive these estimates by using publicly available financial 
information.
    (d) Specific questions for comment associated with making and 
retaining the records required by the regulations described in this 
notice (if the commenter is a casino or card club, FinCEN asks that the 
comment provide information particular to that casino or card club): 
<SUP>28</SUP>
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    \28\ Comments submitted in response to this notice will become a 
matter of public record. Therefore, commenters should submit only 
information that can be made publicly available.
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(1) Complying With 31 CFR 1021.410(a)
    <bullet> On average, how many deposits of funds does a casino 
accept annually?
    <bullet> On average, how many accounts does a casino open annually?
    <bullet> On average, how many lines of credit does a casino extend 
annually?
    <bullet> On average, how long does it take a casino to collect, 
verify, and retain the records required to be maintained when it 
accepts a deposit, opens an account, or extends a line of credit?
(2) Complying With 31 CFR 1021.410(b)(1)-(9)
    <bullet> On average, how often does a casino conduct each of the 
transactions described in 31 CFR 1021.410(b), as explained in further 
detail in Section I above?
    <bullet> On average, how long does it take a casino to collect and 
retain the records required to be maintained when it conducts one of 
the transactions described in 31 CFR 1021.410(b)?
    <bullet> How many of the records required to be made and retained 
under 31 CFR 1021.410(b) does a casino make and retain exclusively to 
comply with the BSA? How many of these records does a casino make and 
retain for other business or regulatory purposes, and what are those 
purposes?
(3) Complying With 31 CFR 1021.410(b)(11)
    <bullet> Is there a public source that FinCEN can utilize to 
estimate the number of card clubs required to comply with 31 CFR 
1021.410?
    <bullet> On average, how many cash transactions are conducted 
annually by a card club?
    <bullet> Are the records required to be maintained under 31 CFR 
1021.410(b)(11) recorded and maintained exclusively to comply with the 
BSA, or does a card club make and retain any of these records for other 
business or regulatory purposes? If so, what are those purposes?
(4) Complying With 31 CFR 1021.410(c)
    <bullet> On average, how long does it take a casino to input and 
retain the records required to be maintained by 31 CFR 1021.410 on 
computer disk, tape, or other machine-readable media, if a casino 
retains the required records in such a format?
    <bullet> On average, what are the estimated costs for a casino to 
retain all of the records described in 31 CFR 1021.410 on computer 
disk, tape, or other machine-readable media for a period of five years?
    (e) General request for comments.
    Comments submitted in response to this notice will be summarized 
and/or included in the request for OMB approval. All comments will 
become a matter of public record. Comments are invited on: (i) Whether 
the collection of information is necessary for the proper performance 
of the functions of the agency, including whether the information shall 
have practical utility; (ii) the accuracy of the agency's estimate of 
the burden of the collection of information; (iii) ways to enhance the 
quality, utility, and clarity of the information to be collected; (iv) 
ways to minimize the burden of the collection of information on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and (v) estimates 
of capital or start-up costs and costs of operation, maintenance, and 
purchase of services to provide information.

Himamauli Das,
Acting Director, Financial Crimes Enforcement Network.
[FR Doc. 2022-03260 Filed 2-15-22; 8:45 am]
BILLING CODE 4810-02-P


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