[Federal Register Volume 59, Number 37 (Thursday, February 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4083]
[[Page Unknown]]
[Federal Register: February 24, 1994]
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DEPARTMENT OF THE TREASURY
Office of the Assistant Secretary for Economic Policy
Reports on Foreign Currency Positions
AGENCY: Departmental Offices, Department of the Treasury.
ACTION: Notice of reporting requirements and availability of forms and
instructions.
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SUMMARY: The Department of the Treasury has issued revised forms and
instructions submitted for Foreign Currency Forms FC-1 (approved by the
Office of Management and Budget (OMB) pursuant to the Paperwork
Reduction Act under OMB Control No. 1505-0012), FC-2 (OMB No. 1505-
0010), and FC-3 (OMB No. 1505-0014). The reports are mandatory. Foreign
Currency Form FC-4 is discontinued for reporting periods beginning in
1994.
This Notice constitutes legal notification to all United States
persons (defined below) who satisfy the reporting criteria set forth in
the section below on Who Must Report that they must respond to, and
comply with, the filing requirements on these forms.
United States persons who are required to report but who do not
receive a copy of the forms and instructions should contact the
Department of the Treasury at (202) 622-2250.
DATES: The filing requirement will take effect on the first filing date
in 1994. Weekly reports must be filed with the applicable district
Federal Reserve Bank no later than noon (12 p.m.) on Friday following
the Wednesday to which the report applies. Monthly reports should be
completed as of the last business day of each month and filed within
ten (10) business days with the Federal Reserve Bank of New York at the
address below. Quarterly reports should be completed as of the last
business day of each calendar quarter (ending March, June, September,
and December) and filed within 45 calendar days with the Federal
Reserve Bank of New York at the address below. Former Forms FC-1, FC-2,
FC-3 and FC-4 should be used to file reports for all completed
reporting periods of 1993 according to the schedules specified in those
forms.
ADDRESSES: Weekly reports should be filed with the Federal Reserve Bank
of the district in which the reporter resides. Monthly and quarterly
reports should be filed with the Federal Reserve Bank of New York,
International Reports Division, 33 Liberty Street, 4th Floor, New York,
New York 10045-0001 or by FAX to (212) 720-8028.
FOR FURTHER INFORMATION CONTACT:
T. Ashby McCown, Director, Office of Data Management, Department of the
Treasury, Washington, DC 20220. Telephone (202) 622-2250; FAX (202)
622-0607.
SUPPLEMENTARY INFORMATION: Public Law 93-110 (31 U.S.C. 5315, 5320, and
5321(a)(3), as amended) directs the Secretary of the Treasury to
prescribe regulations requiring reports on foreign currency
transactions conducted by a United States person or a foreign person
controlled by a United States person. The regulations, 31 CFR part 128,
governing Forms FC-1, FC-2, and FC-3 for use with respect to reporting
periods beginning in 1994, were published in the Federal Register on
November 2, 1993, 58 FR 58494-58497.
Definitions
For purposes of this reporting requirement:
(1) The term ``United States person'' includes a person which is
organized or exists under the laws of any State or, in the case of a
natural person, a citizen or resident of the United States; a domestic
estate; or a trust in which one or more of the foregoing persons has
cumulative direct or indirect beneficial interest in excess of 50 per
centum of the value of the trust. [Section 7(f)(2)(A) of the Securities
and Exchange Act of 1934 (15 U.S.C. 78g(f)(2)(A))]
(2) The term ``foreign person controlled by a United States
person'' includes any noncorporate entity in which United States
persons directly or indirectly have more than a 50 per centum
beneficial interest, and any corporations in which one or more United
States persons, directly or indirectly, own stock possessing more than
50 per centum of total combined voting power of all classes of stock
entitled to vote, or more than 50 per centum of the total value of
shares of all classes of stock. [Section 7(f)(2)(C) of the Securities
and Exchange Act of 1934 (15 U.S.C. 78g(f)(2)(C))]
Who Must Report
The weekly FC-1 and monthly FC-2 reports must be filed throughout
the calendar year by each foreign exchange market participant which had
more than $50 billion equivalent in foreign exchange contracts on the
last business day of any calendar quarter during the previous year
(ending March, June, September, or December) calculated using then
prevailing exchange rates. The quarterly FC-3 reports must be filed
throughout the calendar year by each foreign market participant which
had more than $1 billion equivalent in foreign exchange contracts on
the last business day of any calendar quarter during the previous year
(ending March, June, September, or December) calculated using then
prevailing exchange rates. Such contracts include the amounts of
foreign exchange spot contracts bought and sold, foreign exchange
forward contracts bought and sold, foreign exchange futures bought and
sold, and one half the notional amount of foreign exchange options
bought and sold.
Institutions required to report include all banks and banking
institutions in the United States; the agencies, branches, and
subsidiaries located in the United States of foreign banks and banking
institutions; business concerns and nonprofit institutions; brokers;
dealers; mutual fund, foreign exchange, and hedge fund managers, and
other concerns located in the United States, whether sole
proprietorships, partnerships, groups, associations, syndicates,
trusts, or corporations, including the U.S. branches and subsidiaries
of foreign nonbanking concerns. U.S. reporters should include data for
all domestic and foreign branches and subsidiaries. U.S. subsidiaries
of foreign entities should file for themselves and their subsidiaries,
but not for their parents. In determining whether exemptions apply and
in filing reports, reportable items of direct and indirect
subsidiaries--including banks, Edge Acts, and nonbanks--should be
consolidated with those of the parent. Inter- and intra-company off-
balance sheet contracts should be reported on a gross basis.
Banks which file the Federal Financial Institutions Examination
Council (FFIEC) 035 report (``Monthly Consolidated Foreign Currency
Report'') are not required to file the FC-2 or FC-3 reports. Holding
companies whose subsidiaries file FFIEC 035 reports are not required to
file the FC-2 report unless, directly or indirectly, the holding
company has foreign exchange contracts of $10 billion or more which are
not reflected in FFEIC 035 reports. In such cases, the holding company
should report all foreign exchange contracts and foreign currency-
denominated assets and liabilities on FC-2 which are not included on
FFIEC 035 reports.
How to Report
The reports are to be submitted on forms provided by the Department
of the Treasury and the district Federal Reserve Banks. Computer
printouts in the same format as the form may be used if approved in
writing by the district Federal Reserve Bank to which it is submitted.
The use of a facsimile machine is recommended for weekly reports,
optional for monthly and quarterly reports.
Enforcement Provided by Law
United States persons who meet the reporting requirements are
advised that failure to report can result in a civil penalty up to
$10,000 (31 U.S.C. 5321(a)(3); 31 CFR 128.4(c)).
Dated: February 4, 1994.
Alicia H. Munnell,
Assistant Secretary for Economic Policy.
[FR Doc. 94-4083 Filed 2-23-94; 8:45 am]
BILLING CODE 4810-25-M