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Federal Register / Vol. 86, No. 149 / Friday, August 6, 2021 / Notices operations and only with respect to transactions conducted through the nonlisted business customers exemptible accounts; or 7 any other person, with certain exceptions, that maintains a transaction account at the bank for at least two months, operates a firm that frequently withdraws more than $10,000 in order to pay its U.S.
employees in currency, and is incorporated or organized under the laws of, or is registered as and eligible to do business within, the United States or a State a payroll customer, but solely with respect to withdrawals for payroll purposes from existing exemptible accounts.
31 CFR 1020.315c1 requires a bank to designate an exempt person by filing the DOEP Report within 30 calendar days after the day of the first reportable transaction in currency with that person that the bank seeks to exempt from reporting. A bank holding company or one of its bank subsidiaries may make such a designation on behalf of any or all of the bank holding companys bank subsidiaries by listing those bank subsidiaries in the DOEP Report that it files. However, a bank is not required to file a DOEP Report for transfer of currency to or from 1 any of the 12
Federal Reserve Banks, 2 a bank, to the extent of such banks domestic operations, 3 a department or agency of the United States, of any State, or of any political subdivision of any State, or 4 any entity established under the laws of the United States, any State, or any political subdivision of any State, or under an interstate compact between two or more States, that exercises governmental authority on behalf of the United States or any such State or political subdivision.
31 CFR 1020.315d requires a bank to review at least once annually the continued eligibility of an exempt person that is a 1 listed entity, 2
subsidiary of a listed entity, 3 nonlisted business customer, or 4 payroll customer. As part of the annual review, a bank must also review the application to each existing account of a non-listed business or payroll customer of the monitoring system that 31 CFR
1020.315h2 requires the bank to maintain related to suspicious activity monitoring.
Under 31 CFR 1020.315e, a bank must take steps to assure itself that an exempt person meets the definition of that term see 31 CFR 1020.315b, summarized above, document the basis for its conclusion, and document its compliance with the terms of the exemption, including the operating rules in 31 CFR 1020.315e29. A
bank must also take steps to document
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compliance with its suspicious activity monitoring obligations under 31 CFR
1020.315h2. The steps that the bank takes under 31 CFR 1020.315e must be those that a reasonable and prudent bank would take and document to protect itself from fraud or loss based on misidentification of a persons status and, in the case of the suspicious activity monitoring obligations, to identify suspicious transactions.
31 CFR 1020.315h1 states that the CTR exemption rules do not relieve a bank of its obligation to report any suspicious transactions pursuant to 31
CFR 1020.320, including any suspicious transactions or attempted transactions in currency associated with the accounts of an exempt person, or relieve a bank of any other reporting or recordkeeping obligation imposed under the authority of the BSA.
Under 31 CFR 1020.315h2, a bank must establish and maintain a monitoring system that is reasonably designed to detect, for each account of a non-listed business or payroll customer, transactions in currency that would require a bank to file a suspicious activity report SAR.
Form: FinCEN Report 110DOEP
Report.
Affected Public: Businesses or other for-profit institutions; Not-for-profit institutions.
Estimated Number of Respondents:
11,161.
Frequency of Response: As required.
Estimated Total Number of Annual Responses: 18,141.
Estimated Time per Response: 45
minutes for reporting, 15 minutes for recordkeeping.
Estimated Total Annual Burden Hours: 18,141 hours.
2. Title: Additional records to be made and retained by dealers in foreign exchange and brokers or dealers in securities.
OMB Control Number: 15060052 and 15060053.
Type of Review: Extension without change of a currently approved collection.
Description: 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 Pub. L. 10756 and other legislation. The BSA is codified at 12
U.S.C. 1829b, 12 U.S.C. 19511959, 31
U.S.C. 53115314 and 53165332, and notes thereto, with implementing regulations at 31 CFR Chapter X.

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The BSA authorizes the Secretary of the Treasury, 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 anti-money laundering AML programs and compliance procedures. Regulations implementing Title II of the BSA appear at 31 CFR
Chapter X.
a. 31 CFR 1022.410Additional Records To Be Made and Retained by Dealers in Foreign Exchange 31 CFR 1022.410a requires a dealer in foreign exchange to make and maintain a record of the taxpayer identification number of certain persons for whom a transaction account is opened or a line of credit is extended, within 30 days of opening such an account or extending such a line of credit, or longer if the person has applied for a taxpayer identification or social security number. A dealer in foreign exchange must also maintain a list containing the names, addresses, and account or credit line numbers of those persons from whom it has been unable to secure such information despite reasonable efforts. A dealer in foreign exchange need not attempt to secure such information if the person is an agency or instrumentality of a Federal, state, local, or foreign government using an account for public funds, one of several categories of aliens that are not permanent resident aliens, or an unincorporated subordinate unit of a tax exempt organization covered by a group exemption letter.
Under 31 CFR 1022.410b, a dealer in foreign exchange must also retain the original or a copy of nine types of documents: 1 Statements of accounts from banks, including documents representing the entries reflected on such statements; 2 daily work records, including documents needed to identify and reconstruct currency transactions with customers and foreign banks; 3 a record of each exchange of currency involving transactions in excess of $1,000, including the customers name and address and passport or tax identification number unless received by mail or common carrier, the date and amount of the transaction, and the currency name, country, and total amount of each foreign currency; 4
signature cards or other documents evidencing signature authority over each deposit or security account, containing specified items of information about the customer
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