[Federal Register Volume 60, Number 37 (Friday, February 24, 1995)]
[Rules and Regulations]
[Pages 10306-10307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4547]



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FEDERAL RESERVE SYSTEM

12 CFR Part 265

[Docket No. R-0871]


Rules Regarding Delegation of Authority

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule.

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SUMMARY: This rule delegates to the General Counsel of the Board of 
Governors of the Federal Reserve System (Board) the authority to 
approve requests for assistance from, and to share information with, 
foreign banking authorities pursuant to the Federal Deposit Insurance 
Act (FDI Act). This delegation of authority is intended to aid in the 
expeditious processing of requests for assistance from foreign banking 
authorities.

EFFECTIVE DATE: February 17, 1995.

FOR FURTHER INFORMATION CONTACT: Paul A. Vogel, Attorney (202/452-
3428), Legal Division, Board of Governors of the Federal Reserve 
System. For the hearing impaired only, Telecommunications Device for 
the Deaf (TDD), contact Dorthea Thompson (202/452-3544), Board of 
Governors of the Federal Reserve System, 20th & C Street, NW., 
Washington, DC 20551.

SUPPLEMENTARY INFORMATION: Section 8(v) of the FDI Act (12 U.S.C. 
1818(v)) permits the Board to provide assistance to a foreign banking 
authority if such authority states that it is conducting an 
investigation to determine whether any person has violated, is 
violating, or is about to violate any banking or currency transaction 
law or regulation administered or enforced by the requesting authority. 
Section 8(v) of the FDI Act permits the Board, in its discretion, to 
investigate and to collect and disclose information to a foreign 
banking authority upon the request of such authority. Any such 
investigation shall comply with the laws of the United States and the 
policies and procedures adopted by the Board. In deciding whether to 
provide assistance to the foreign banking authority, the FDI Act 
requires the Board to consider (1) whether the requesting authority has 
agreed to provide reciprocal assistance to the Board and to the other 
Federal banking agencies and (2) whether compliance with the request 
would prejudice the public interest of the United States.
    The Board has delegated to its General Counsel the authority to 
approve requests for assistance from foreign banking authorities 
pursuant to section 8(v) of the FDI Act. This delegation of authority 
is consistent with previous Board action with respect to cooperation 
with foreign supervisors. On January 28, 1993, (58 FR 6348) the Board 
issued a final rule implementing portions of the Foreign Bank 
Supervision Enhancement Act of 1991 (FBSEA). The final rule included a 
provision delegating to the General Counsel the authority to make the 
determinations necessary to disclose information to foreign bank 
supervisory authorities pursuant to the FBSEA. Section 206 of the FBSEA 
(12 U.S.C. 3109) permits the Board to share supervisory information 
with its foreign counterparts after, among other things, obtaining an 
agreement to maintain the confidentiality of the information when 
necessary under applicable law. Because the cooperation authorities 
under the FDI Act and the FBSEA are overlapping, the Board has 
delegated to the General Counsel the authority to approve requests for 
assistance from foreign banking authorities pursuant to section 8(v) of 
the FDI Act.
    The provisions of the Administrative Procedures Act (APA) (5 U.S.C. 
553) relating to notice, public participation, and deferred effective 
date have not been followed in connection with the adoption of this 
amendment because the change to be effected is procedural in nature and 
does not constitute a substantive rule subject to the requirements of 
that section. The APA grants a specific exemption from its requirements 
relating to notice and public participation in this instance (12 U.S.C. 
553(b)(3)(A)), and good cause exists to find that the nature of this 
amendment makes a notice and public comment procedure unnecessary.

Regulatory Flexibility Act Analysis

    Pursuant to the Regulatory Flexibility Act (5 U.S.C. 601-612), the 
Board hereby certifies that this rule will not have a significant 
economic impact on a substantial number of small entities.

List of Subjects in 12 CFR Part 265

    Authority delegations (Government agencies), Banks banking, Federal 
Reserve System.

    For the reasons set out in the preamble, the Board is amending 12 
CFR Part 265 as set forth below: [[Page 10307]] 

PART 265--RULES REGARDING DELEGATION OF AUTHORITY

    1. The authority citation for Part 265 continues to read as 
follows:

    Authority: 12 U.S.C. 248 (i) and (k).

    2. Section 265.6 is amended by revising paragraph (b)(2) and by 
adding paragraph (b)(3) to read as follows:


Sec. 265.6  Functions delegated to General Counsel.

* * * * *
    (b) * * *
    (2) Disclosure to foreign authorities. To make the determinations 
required for disclosure of information to a foreign bank regulatory or 
supervisory authority, and to obtain, to the extent necessary, the 
agreement of such authority to maintain the confidentiality of such 
information to the extent possible under applicable law.
    (3) Assistance to foreign authorities. To approve requests for 
assistance from any foreign bank regulatory or supervisory authority 
that is conducting an investigation regarding violations of any law or 
regulation relating to banking matters or currency transactions 
administered or enforced by such authority, and to make the 
determinations required for any investigation or collection of 
information and evidence pertinent to such request. In deciding whether 
to approve requests for assistance under this paragraph, the General 
Counsel shall consider:
    (i) Whether the requesting authority has agreed to provide 
reciprocal assistance with respect to banking matters within the 
jurisdiction of any appropriate Federal banking agency;
    (ii) Whether compliance with the request would prejudice the public 
interest of the United States; and
    (iii) Whether the request is consistent with the requirement that 
the Board conduct any such investigation in compliance with the laws of 
the United States and the policies and procedures of the Board.
* * * * *
    By order of the Board of Governors of the Federal Reserve 
System, February 17, 1995.
William W. Wiles,
Secretary of the Board.
[FR Doc. 95-4547 Filed 2-23-95; 8:45 am]
BILLING CODE 6210-01-P