Voglio sapere a riguardo di…

69948

Federal Register / Vol. 86, No. 233 / Wednesday, December 8, 2021 / Proposed Rules
of the proposal are new relative to maintaining the current framework.
Pursuant to the Regulatory Flexibility Act, FinCENs analysis concluded that the proposed rule would have a significant economic impact on a substantial number of small entities.
Furthermore, pursuant to the Unfunded Mandates Reform Act, FinCEN
concluded that the proposed rule, if implemented, would result in an expenditure of $158 million or more annually by state, local, and Tribal governments or by the private sector.158

combat illicit activity in the United States, including money laundering related to the financing of terrorism, corruption, proliferation, and other crimes.159 The proposed rule avoids undue interference with state, local, and Tribal governments. While such governments are important partners and consultative parties in the implementation of the CTA, as noted in the law itself, the proposed rule minimizes the interference with these governments see alternative considered below.

A. Executive Orders 12866 and 13563

i. Costs The primary cost to the public associated with the proposed rule results from multiple information collection requirements. Pursuant to the proposed rule, reporting companies would be required to submit to FinCEN
an initial report that contains certain identifying information for the reporting company, each identified beneficial owner, and each company applicant, as well as copies of acceptable identification documents for each identified beneficial owner and each company applicant. Reporting companies would also be required to update these reports. Individuals requesting a FinCEN identifier would be required to submit initial requests to FinCEN and update the identifying information associated with their FinCEN identifier.160 Finally, foreign pooled investment vehicles would be required to submit reports to FinCEN
identifying a beneficial owner and update such information. A detailed analysis of the potential costs associated with these proposed information collection requirements is included in the Paperwork Reduction Act section below see Tables 6 and 7 below. The net present value of the total cost over a 10-year time horizon at a seven percent discount rate for these information collections is approximately $3.4 billion. At a three percent discount rate, the net present value is approximately $3.98 billion as the aggregate cost estimate of the proposed rule. FinCEN estimates that it
jspears on DSK121TN23PROD with PROPOSALS4

Executive Orders 12866 and 13563
direct agencies to assess costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits including potential economic, environmental, and public health and safety effects; distributive impacts; and equity. Executive Order 13563
emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. This proposed rule has been designated a significant regulatory action and economically significant under section 3f of Executive Order 12866. Accordingly, the proposed rule has been reviewed by the Office of Management and Budget OMB.
This proposed rule is necessary to comply with and implement the CTA.
As described in the preamble, this proposed rule is consistent with the CTAs statutory mandate that the Secretary of the Treasury by regulation prescribe procedures and standards governing reports and the FinCEN
identifier described in the CTA. The CTA states that the regulations shall be promulgated to the extent practicable:
1 To minimize burdens on reporting companies associated with the collection of BOI, including by eliminating duplicative requirements;
and 2 to ensure that the BOI reported to FinCEN is accurate, complete, and highly useful. As also described throughout the preamble, FinCEN has carefully weighed these considerations while developing the proposed rule.
The implementation of the CTA would promote the Presidents objective to 158 The Unfunded Mandates Reform Act requires an assessment of mandates with an annual expenditures of $100 million or more, adjusted for inflation. The gross domestic product GDP
deflator in 1995, the date of the Unfunded Mandates Reform Act, is $71.868, while in 2020 it was $113.625. Thus, the inflation adjusted estimate for $100 million is $113.625/71.868 100 = $158
million.

VerDate Sep<11>2014

19:51 Dec 07, 2021

Jkt 256001

159 Fighting corruption was identified as a Presidential priority in a Presidential Memorandum published on June 3, 2021. The memorandum specifically mentions bringing transparency to the United States and global financial systems. The White House, Memorandum on Establishing the Fight Against Corruption as a Core United States National Security Interest, June 3, 2021, available at https www.whitehouse.gov/briefing-room/
presidential-actions/2021/06/03/memorandum-onestablishing-the-fight-against-corruption-as-a-coreunited-states-national-security-interest/.
160 FinCEN is not separately calculating a cost estimate for entities requesting a FinCEN identifier, but rather FinCEN has included those costs as a part of the costs of submitting the BOI reports.

PO 00000

Frm 00030

Fmt 4701

Sfmt 4702

would cost each of the 25 million domestic and foreign reporting companies that are estimated to currently exist approximately $45
apiece to prepare and submit an initial report in the first year that the BOI
reporting requirements are in effect. In comparison, the state formation fee for creating a limited liability company could cost between $40 and $500, depending on the state.161
Administering the regulation would also entail potential costs to FinCEN.
Such costs include information technology IT development and ongoing annual maintenance, as well as processing electronic submissions of BOI data.162 FinCEN estimates that initial IT development costs would be $33 million 163 with an additional $31
million per year required to maintain the new BOI systems and the underlying FinCEN technology being leveraged to support the new capabilities.
FinCEN may incur additional costs, besides those estimated above, while promoting compliance with the BOI
reporting requirements, potentially including providing training on the requirements, publishing documents such as guidance and frequently asked questions FAQs, and conducting outreach to and answering inquiries from the public. FinCEN does not currently have specific estimates for these costs, but estimates that there would be relatively modest personnel costs of less than $10 million associated with the reporting rule in both Fiscal Year 2022 and Fiscal Year 2023, with continuing recurring costs of roughly the same magnitude for ongoing outreach and enforcement thereafter.
FinCEN and other government agencies may also incur costs in enforcing compliance with the regulation. FinCEN does not currently 161 The fee for Articles of Organization of a domestic limited liability company in Kentucky is $40. Kentucky Secretary of State, Business Filings Fees, available at https sos.ky.gov/bus/businessfilings/Pages/Fees.aspx The fee for a Certificate of Registration for a limited liability company in Massachusetts is $500. Massachusetts Secretary of State, Corporations Division Filing Fees, available at https www.sec.state.ma.us/cor/corfees.htm.
FinCEN also identified a website that provides the fees for all states, as a point of reference. See IncFile, Review State Filing Fees & LLC Costs, available at https www.incfile.com/state-filingfees.
162 FinCEN would also incur costs in administering access to BOI, but those costs will be considered in detail in a separate notice for the BOI
access regulations.
163 FinCENs cost estimates will continue to evolve as more information about systems requirements and development costs become known. For example, the requirement to include scanned images of acceptable identification documents will increase the cost of system development and implementation.

E:FRFM08DEP4.SGM

08DEP4