Please read the instructions before completing this form. For additional forms or assistance in completing this form, contact your agency’s Paperwork Clearance Officer. Send two copies of this form, the collection instrument to be reviewed, the Supporting Statement, and any additional documentation to: Office of Information and Regulatory Affairs, Office of Management and Budget, Docket Library, Room 10102, 725 17th Street NW Washington, DC 20503.
1. Agency/Subagency originating request
Comptroller of the Currency; Treasury / 2. OMB control number
a. 1557 - 0231 / b. None
3. Type of information collection (check one)
a. New collection
b. Revision of a currently approved collection
c. X Extension of a currently approved collection
d. Reinstatement, without change , of a previously approved
collection for which approval has expired
e. Reinstatement, with change, of a previously approved
collection for which approval has expired
f. Existing collection in use without an OMB control number
For b-f, note Item A2 of Supporting Statement instructions / 4. Type of review requested (check one)
a. X Regular
b. Emergency-Approval requested by: __ / __ / __
c. Delegated
5. Small entities
Will this information collection have a significant economic impact on a
substantial number of small entities? Yes X No
6. Requested expiration date
a. X Three years from approval date b. Other: Specify:
7. Title
Risk Assessment Form
8. Agency form number(s) (if applicable)
None.
9. Keywords
Bank secrecy, money laundering, risk assessment.
10. Abstract: The form assists national bank examiners in measuring the levels of risk in individual banks.
11. Affected public (Mark primary with “P” and all others that apply with “X”) / 12 Obligation to respond (Mark primary with “P” and all others that apply with “X”)
a. / Individuals or households / d. / Farms / a. / Voluntary
b. / P / Business or other for –profit / e. / Federal Government / b. / Required to obtain or retain benefits
c. / Not-for-profit institutions / f. / State, Local or Tribal Government / c. / P Mandatory
13. Annual reporting and recordkeeping hour burden / 14. Annual reporting an recordkeeping cost burden (in thousands of dollars)
a. / Number of respondents / 2,042 / a. / Total annualized capital/startup costs / 0
b. / Total number of responses / 2,042 / b. / Total annual cost / -
1. / Percentage of these responses / c. / Total annualized cost requested / -
collected electronically / 0 / % / d. / Current OMB inventory / -
c. / Total annual hours requested / 21,364 / e. / Difference / -
d. / Current OMB Inventory / 21,364 / f. / Explanation of difference
e. / Difference / 0 / 1. / Program change
f. / Explanation of difference / 2. / Adjustment
1. / Program change / 0
2. / Adjustment / 0
15. Purpose of information collection (Mark primary with “P” and all others that apply with “X”) / 16. Frequency of recordkeeping or reporting (check all that apply)
a. / Application for benefits / e. / Program planning or management / a. Recordkeeping / b. Third party disclosure
b. / Program evaluation / f. / Research / c. X Reporting
c. / General purpose statistics / g. / P / Regulatory or compliance / 1. / On occasion / 2. / Weekly / 3. / Monthly
d. / Audit / 4. / Quarterly / 5. / Semi-annually / 6 / X Annually
7. / Biennially / 8. / X Other (describe) / During Pilot
17. Statistical methods
Does this information collection employ statistical methods? / 18. Agency contact (person who can best answer questions regarding the content of this submission)
Yes / X / No / Name / John Wagner
Phone / 874-4428
OMB 83-I 10/95
19. Certification for Paperwork Reduction Act SubmissionsOn behalf of this Federal agency, I certify that the collection of information encompassed by this request complies
with 5 CFR 1320.9.
NOTE: The text of 5 CFR 1320.9, and the related provisions of 5 CFR 1320.8 (b) (3), appear at the end of the instructions.
The certification is to be made with reference to those regulatory provisions as set forth in the instructions.
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 terminology 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):
(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 (see note in Item 19 of the instructions);
(i) It uses effective and efficient statistical survey methodology; and
(j) It makes appropriate use of information technology.
If you are unable to certify compliance with any of these provisions, identify the item below and explain the
reason in Item 18 of the Supporting Statement.
Signature of Program Official / Date
Signature of Senior Official or designee / Date
OMB 83-I 10/95
BILLING CODE: 4810-33-P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities:
Submission for OMB Review; Comment Request
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.
ACTION: Notice and request for comments.
SUMMARY: The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on a continuing information collection, as required by the Paperwork Reduction Act of 1995. An agency may not conduct or sponsor, and a respondent is not required to respond to, an information collection unless the information collection displays a currently valid OMB control number. The OCC is soliciting comment on an information collection titled “Bank Secrecy Act/Money Laundering Risk Assessment.” The OCC also gives notice that it has sent the information collection to OMB for review and approval.
DATES: Written comments should be submitted by [Insert 30 Days from Date of Publication in Federal Register].
ADDRESSES: You should direct your comments to:
Communications Division, Office of the Comptroller of the Currency, Public Information Room, Mailstop 1-5, Attention: 1557-0231, 250 E Street, SW., Washington, DC 20219. In addition, comments may be sent by fax to (202) 874-4448, or by electronic mail to . You can inspect and photocopy the comments at the OCC’s Public Information Room, 250 E Street, SW., Washington, DC 20219. You can make an appointment to inspect the comments by calling (202) 874-5043.
Additionally, you should send a copy of your comments to OCC Desk Officer, 1557-0231, by mail to U.S. Office of Management and Budget, 725, 17th Street, NW, #10235, Washington, DC 20503, or by fax to (202) 395-6974.
FOR FURTHER INFORMATION CONTACT: You can request additional information or a copy of the collection from Mary Gottlieb, OCC Clearance Officer, or Camille Dixon, (202) 874-5090, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 250 E Street, SW, Washington, DC 20219.
SUPPLEMENTARY INFORMATION: The OCC is proposing to extend OMB approval, without change, of the following information collection:
Title: Bank Secrecy Act/Anti-Money Laundering Risk Assessment.
OMB Number: 1557-0231.
Form Number: N/A.
Abstract: The Risk Assessment will enhance the ability of examiners and bank management to identify and evaluate any Bank Secrecy Act/Anti-Money Laundering risks associated with the banks’ products, services, customers, and locations. As new products and services are introduced, existing products and services change, and the banks expand through mergers and acquisitions, management’s evaluation of money laundering and terrorist financing risks must evolve as well. Absent appropriate controls, such as this risk assessment, these lines of business, products, or entities could elevate Bank Secrecy Act/Anti-Money Laundering risks.
Type of Review: Extension of approval for three years.
Affected Public: Businesses or other for-profit.
Number of Respondents: 2,042.
Total Annual Responses: 2,042.
Frequency of Response: Annually.
Total Annual Burden Hours: 21,364.
Comments are invited on:
(a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information has practical utility;
(b) The accuracy of the agency'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 startup costs and costs of operation, maintenance, and purchase of services to provide information.
Dated: December 2, 2005
______
Stuart Feldstein
Assistant Director, Legislative and Regulatory Activities Division
Supporting Statement
Bank Secrecy Act/Anti-Money Laundering Risk Assessment
OMB Control No. 1557-0231
A. Justification.
1. Circumstances that make the collection necessary:
Under 12 CFR § 21.21, national banks are required to develop and provide for the continued administration of a program reasonably designed to assure and monitor their compliance with the Bank Secrecy Act (BSA) and Treasury Regulations at 31 CFR Part 103. The compliance program must be in writing, approved by the board of directors and noted in the minutes. This requirement is currently approved by OMB under control no. 1557-0180.
In addition to these existing procedures, the OCC has developed a new money laundering risk assessment system to assist national bank examiners in measuring levels of risk in individual banks. It will provide a more thorough and systematic method for examiners to assess a bank’s risk profile to determine examination scopes and areas where expanded procedures and transaction testing may be needed.
This risk assessment is critical in protecting banks from potential abuse from money laundering or terrorist financing. Certain products, services, customers and geographic locations are vulnerable to attempts to launder money, finance terrorism, or conduct other illegal activities through a bank. Depending upon the characteristics of the particular product, service, or customer, the risks are not always the same. Factors such as number and dollar volume, geographic location, and customer versus non-customer, are considered when making a risk assessment.
This submission is a request for renewal of the emergency clearance currently in effect regarding this collection.
2. Use of the information:
The OCC needs the information generated through the risk assessment to evaluate and examine the risks associated with each banks’ products, services, customers, and locations. As new products and services are introduced, existing products and services change, and the banks expand through mergers and acquisitions, bank management’s evaluation of money laundering and terrorist financing risks must evolve as well. Absent appropriate controls, such as this risk assessment, national banks could not appropriately address their unique Bank Secrecy Act/Anti-Money Laundering risks. The OCC plans to provide the risk assessment information, gathered through this process, back to the individual national banks. Due to the breadth, depth, and complexity of operations, information gathering will be optional for the Large Bank population.
3. Consideration of the use of improved information technology:
National banks may use any information technology that permits review by OCC examiners.
4. Efforts to identify duplication:
The required information is unique and is not duplicative of any other information already collected.
5. Methods used to minimize burden if the collection has a significant impact on a substantial number of small entities:
Not applicable. The collection does not have a significant impact on a substantial number of small entities.
6. Consequences to the Federal program if the collection were conducted less frequently:
Conducting the risk assessment less frequently would prevent national banks from being able to appropriately address their unique Bank Secrecy Act/Anti-Money Laundering risks.
7. Special circumstances that would cause an information collection to be conducted in a manner inconsistent with 5 CFR Part 1320:
The information collection will be conducted in a manner consistent with 5 CFR Part 1320.
8. Efforts to consult with persons outside the agency:
The OCC requested comments on the proposed information collection (70 FR 54982, September 19, 2005). Two comments were received, both from industry trade associations.
The comments focused primarily on the estimated average time that institutions of different sizes would need to complete the Risk Summary Form. One of the comments indicated that our estimate covers only the time necessary to comply with the information collection and does not include the time necessary to conduct a risk assessment. The other commenter suggested that our estimate was too low, indicating that at least 6-50 hours of management time and 3-10 hours of director time would be devoted to risk assessment activity. Both of the comments thus appeared to incorporate estimates of time devoted to an institution’s risk assessment activities other than, or in addition to, completion of the Risk Summary Form. The Paperwork Reduction Act of 1995, however, requires the OCC to estimate the burden associated with a particular information collection – here, the Risk Summary Form. Thus, while providing the information called for on the Form is only one aspect of an institution’s overall BSA/AML risk assessment process, the need for an institution to undertake other BSA/AML risk assessment activities is based on other requirements, not on the Form. Accordingly, the OCC’s burden hour estimate pertains only to the time necessary to provide the information called for on the Form. Moreover, our estimate of 10.46 hours per bank represents an average of estimates that vary depending on the size of the bank. We estimated that 1,789 small banks would each devote 6 hours to providing the information requested on the Form; 77 mid-size banks would each devote 30 hours; and 76 large banks would each devote 100 hours. We continue to believe that this range of estimates takes appropriate account of the size and complexity of the institutions we supervise.