[Federal Register Volume 78, Number 46 (Friday, March 8, 2013)]
[Pages 15121-15123]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-05355]



Office of the Comptroller of the Currency

Agency Information Collection Activities; Submission for OMB 
Review; Comment Request; Bank Secrecy Act/Money Laundering Risk 

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 the general public and other Federal 
agencies to comment on a continuing information collection, as required 
by the Paperwork Reduction Act of 1995.
    Under the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35) 
(PRA), Federal agencies are required to publish notice in the Federal 
Register concerning each proposed collection of information, including 
each proposed extension of an existing collection of information.
    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 comments concerning an information collection 
titled ``Bank Secrecy Act/Money Laundering Risk Assessment,'' also 
known as the Money Laundering Risk (MLR) System.
    The OCC is also announcing that the proposed collection of 
information has been submitted to OMB for review and clearance under 
the Paperwork Reduction Act of 1995.

DATES: Comments must be submitted by April 8, 2013.

ADDRESSES: Because paper mail in the Washington, DC area and at the OCC 
is subject to delay, commenters are encouraged to submit comments by 
email if possible. Comments may be sent to: Legislative and Regulatory 
Activities Division, Office of the Comptroller of the Currency, 
Attention: 1557-0231, 400 7th Street SW., Suite 3E-218, Mail Stop 9W-
11, Washington, DC 20219. In addition, comments may be sent by fax to 
(571) 465-4326 or by electronic mail to regs.comments@occ.treas.gov. 
You may personally inspect and photocopy comments at the OCC, 400 7th 
Street SW., Washington, DC 20219. For security reasons, the OCC 
requires that visitors make an appointment to inspect comments. You may 
do so by calling (202) 649-6700. Upon arrival, visitors will be 
required to present valid government-issued photo identification and to 
submit to security screening in order to inspect and photocopy 
    All comments received, including attachments and other supporting 
materials, are part of the public record and subject to public 
disclosure. Do not enclose any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.
    Additionally, please send a copy of your comments by mail to: OCC 
Desk Officer, 1557-0231, U.S. Office of Management and Budget, 725 17th 
Street NW., 10235, Washington, DC 20503, or by email to: oira 

FOR FURTHER INFORMATION CONTACT: You can request additional information 
from or a copy of the collection from Johnny Vilela or Mary H. 
Gottlieb, Clearance Officers, (202) 649-5490, Legislative and 
Regulatory Activities Division (1557-0231), Office of the Comptroller 
of the Currency, 400 7th Street SW.,

[[Page 15122]]

Suite 3E-218, Mail Stop 9W-11, Washington, DC 20219.

SUPPLEMENTARY INFORMATION:  In compliance with 44 U.S.C. 3507, the OCC 
has submitted the following proposed collection of information to OMB 
for review and clearance.

Bank Secrecy Act/Money Laundering Risk Assessment (OMB Control Number 

    The MLR System enhances the ability of examiners and bank 
management to identify and evaluate Bank Secrecy Act/Money Laundering 
and Office of Foreign Asset Control (OFAC) sanctions risks associated 
with banks' products, services, customers, and locations. As new 
products and services are introduced, existing products and services 
change, and banks expand through mergers and acquisitions, management's 
evaluation of potentially new money laundering and terrorist financing 
risks must evolve as well. Consequently, the MLR risk assessment is an 
important tool for the OCC's Bank Secrecy Act/Anti-Money Laundering/
OFAC supervision activities because it allows the agency to better 
identify those institutions, and areas within institutions, that pose 
heightened risk, and allocate examination resources accordingly. This 
risk assessment is critical in protecting financial institutions of all 
sizes from potential abuse from money laundering or terrorist 
financing. Absent an appropriate risk assessment, applicable controls 
cannot be effectively implemented for lines of business, products, or 
entities, which would elevate Bank Secrecy Act/Money Laundering and 
OFAC compliance risks.
    The OCC is considering expanding this reporting requirement to 
include OCC's Midsize and Large Bank populations and, therefore, is 
seeking OMB approval to include these populations in its information 
    The OCC recently updated the annual Risk Summary Form. The changes 
in the 2012 form enhance the assessment process by requiring the 
reporting of products, services, and customers (PSCs) related to 
prepaid access or prepaid cards, a growth industry that is receiving 
increased attention from regulators, law enforcement, and Congress. The 
form now requires the reporting of the following prepaid card PSCs: (i) 
Prepaid Cards (Reloadable and Non-Reloadable); (ii) Prepaid Card 
Programs--Third-Party Sponsored (Reloadable and Non-Reloadable); (iii) 
Prepaid Card Programs--Bank-Sponsored (Reloadable and Non-Reloadable); 
(iv) Prepaid Cardholders (Reloadable and Non-Reloadable); and (v) 
Prepaid Card Program Managers. In addition, the Money Services Business 
(MSB) section of the form was modified to reflect changes in regulatory 
definitions. The form now includes MSB customers that are Providers of 
Prepaid Access and Sellers of Prepaid Access. All of these changes were 
made within the existing subject headers.
    The OCC estimates the burden of this collection of information as 

Burden Estimates

Community Bank Population

    Estimated Number of Respondents: 1,792.
    Estimated Number of Responses: 1,792.
    Frequency of Response: Annually.
    Estimated Annual Burden: 10,752 hours.

Midsize Bank Population

    Estimated Number of Respondents: 62.
    Estimated Number of Responses: 62.
    Frequency of Response: Annually.
    Estimated Annual Burden: 1,860 hours.

Large Bank Population

    Estimated Number of Respondents: 99.
    Estimated Number of Responses: 99.
    Frequency of Response: Annually.
    Estimated Annual Burden: 9,900 hours.

Comment Summary

    In the Federal Register of November 26, 2012 (77 FR 70544), the OCC 
published a 60-day notice soliciting comments concerning this 
information collection. The OCC received two comment letters in 
response to the 60-day notice from OCC supervised banks.
    Both commenters recommended the OCC not expand its data collection 
requirement beyond the current community bank population. One comment 
letter indicated the collection of Bank Secrecy Act/Money Laundering 
related data should not be performed in a uniform manner since banks 
serve different customer types and geographies, and have varied 
products, transaction volumes, staffing, and expertise. The commenter 
observed that risk management is not a universal exercise and that 
management may tailor its risk assessment process to meet a bank's 
unique needs. The other commenter indicated expanding the data 
collection to Midsize and Large Banks would create redundancies and 
unnecessary burden on these financial institutions. The comment letter 
stated Midsize and Large Banks have been performing annual risk 
assessments for years, and, as such, these banks are best suited to 
evaluate their bank secrecy/money laundering risks. The commenter went 
on to suggest the OCC should instead focus on reviewing banks' analyses 
and risk assessment methodologies. Finally, the commenter suggested 
that the burden estimates are low, as the OCC may not fully appreciate 
the variance between bank data metrics and the data requested by the 
    The OCC carefully considered both comment letters. The purpose of 
the MLR System is to support the OCC's supervisory objectives by 
allowing for the identification and analysis of Bank Secrecy Act/Money 
Laundering and OFAC sanctions risks across the population of supervised 
banks, and to assist examiners in carrying out risk-based supervision 
and to improve examination scoping and transaction testing. The MLR 
System is not intended to supplant a bank's full Bank Secrecy Act and 
OFAC risk assessments, as the MLR seeks only to gather certain specific 
data without also collecting and considering information related to 
risk management processes. The OCC's evaluation of the institution's 
full risk assessment is performed during regular examinations. The MLR 
System can complement banks' Bank Secrecy Act and OFAC risk 
assessments, as data gathered should be substantially similar to the 
information needed to perform internal analyses of inherent Bank 
Secrecy Act and OFAC risks. Also, the burden estimates provided in this 
notice were calculated in conformance with OMB methodologies. Finally, 
the OCC is considering, but has not yet made a decision whether to 
expand the MLR reporting requirement to the OCC's Midsize and Large 
Bank populations.
    Comments continue to be 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 start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.

[[Page 15123]]

    All comments will become a matter of public record. Written 
comments should address the accuracy of the burden estimates and ways 
to minimize burden including the use of automated collection techniques 
or the use of other forms of information technology as well as other 
relevant aspects of the information collection request.

    Dated: March 4, 2013.
Michele Meyer,
Assistant Director, Legislative and Regulatory Activities Division.
[FR Doc. 2013-05355 Filed 3-7-13; 8:45 am]