[Federal Register Volume 60, Number 244 (Wednesday, December 20, 1995)]
[Notices]
[Pages 65656-65658]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30892]



=======================================================================
-----------------------------------------------------------------------

FEDERAL RESERVE SYSTEM


Agency Forms Under Review

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Board requests comment on the proposed one-time Check 
Fraud 

[[Page 65657]]
Survey. This survey will help the Federal Reserve to fulfill the 
Congressional mandate that the Board report to Congress on the 
advisability of modifying the Expedited Funds Availability Act (EFAA) 
to extend the maximum permissible hold period for local checks as a 
means of decreasing losses related to check fraud. The Congress further 
directed the Board to consider whether there is a pattern of 
significant increases in losses related to check fraud at depository 
institutions attributable to the provisions of the EFAA; to consider 
whether an extension by one day of the period between the deposit of a 
local check and the availability of funds for withdrawal would be 
effective in reducing the volume of losses related to check fraud; and 
to make recommendations for legislative actions. Data collected from 
the survey will cover the period January 1, 1995, through December 31, 
1995.

DATES: Comments must be submitted on or before February 20, 1996.

ADDRESSES: Comments, which should refer to OMB control number 7100-
0279, may be mailed to Mr. William W. Wiles, Secretary, Board of 
Governors of the Federal Reserve System, 20th and C Streets, N.W., 
Washington, DC 20551. Comments may also be delivered to Room B-2222 
between 8:45 a.m. and 5:15 p.m. weekdays, and to the guard station in 
the Eccles Building courtyard on 20th Street N.W. (between Constitution 
Avenue and C Street) at any time. Comments may be inspected in room MP-
500 of the Martin Building between 9:00 a.m. and 5:00 p.m. weekdays, 
except as provided in section 12 CFR 261.8 of the Board's rules 
regarding availability of information.
    Comments may also be submitted to the OMB desk officer for the 
Board: Milo Sunderhauf, Office of Information and Regulatory Affairs, 
Office of Management and Budget, New Executive Office Building, Room 
3208, Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: A copy of the proposed survey and 
instructions, the Paperwork Reduction Act Submission (OMB 83-I), 
supporting statement, and other documents, may be requested from Mary 
M. McLaughlin, Federal Reserve Board Clearance Officer (202/452-3829), 
Division of Research and Statistics, Board of Governors of the Federal 
Reserve System, Washington, DC 20551. For further information regarding 
the purpose and content of the proposed survey contact Jack Walton, 
Manager (202/452-2660), or Michelle Braun, Senior Financial Services 
Analyst (202/452-2819), Check Payments section, Division of Reserve 
Bank Operations and Payment Systems. For users of Telecommunications 
Device for the Deaf (TDD), please contact Dorothea Thompson (202-452-
3544).

SUPPLEMENTARY INFORMATION:

I. Background

    On June 15, 1984, the Office of Management and Budget (OMB) 
delegated to the Board of Governors of the Federal Reserve System 
(Board) its approval authority under the Paperwork Reduction Act of 
1995, as per 5 CFR 1320.16, to approve and assign OMB control numbers 
to collection of information requests and requirements conducted or 
sponsored by the Board under conditions set forth in the Paperwork 
Reduction Act (5 CFR 1320 Appendix A.1). The Federal Reserve may not 
conduct or sponsor, and the respondent is not required to respond to, 
an information collection that has been extended, revised, or 
implemented on or after October 1, 1995, unless it displays a currently 
valid OMB control number. Board-approved collections of information 
will be incorporated into the official OMB inventory of currently 
approved collections of information. A copy of the Paperwork Reduction 
Act Submission (OMB 83-I) and supporting statement and the approved 
collection of information instrument(s) will be placed into OMB's 
public docket files. The survey, which is being handled under this 
delegated authority, has received initial Board approval and is hereby 
published for comment. At the end of the comment period, the proposed 
survey, along with an analysis of comments and recommendations 
received, will be submitted to the Board for final approval under OMB 
delegated authority.

II. Proposal to Approve Under OMB Delegated Authority the Following 
Report

    Report title: Federal Reserve Check Fraud Survey.
    Agency form number: FR 3080.
    OMB control number: 7100-0279.
    Frequency: one time.
    Reporters: depository institutions.
    Annual reporting hours: 14,976.
    Estimated average hours per response: 9.
    Number of respondents: 1,664.
    Small businesses are affected: This information collection is 
voluntary [Public Law 103-325, Title III, section 333] and is given 
confidential treatment [5 U.S.C. Sec. 552(b)(4)].

III. Justification

    The 1994 Community Development Banking Act states that the Board 
shall ``conduct a study on the advisability of extending the 1-
business-day period specified in section 603(b)(1) of the Expedited 
Funds Availability Act (EFAA), regarding availability of funds 
deposited by local checks, to 2 business days.'' The report is to be 
submitted to the Congress by September 1996. The Congress further 
directed the Board to consider:
     Whether there is a pattern of significant increases in 
losses related to check fraud at depository institutions attributable 
to the provisions of the EFAA;
     Consider whether an extension by one day of the period 
between the deposit of a local check and the availability of funds for 
withdrawal would be effective in reducing the volume of losses related 
to check fraud; and
     Make recommendations for legislative action.
    To respond to the request of the Congress, the Board proposes that 
a survey of check fraud be conducted. The survey will gather 
information about the relationship of all funds availability schedules 
mandated in the EFAA to check-fraud losses as well as specific 
information about the types of check fraud and the causes of check-
fraud losses at depository institutions.
    The proposed survey not only addresses the effect of the mandatory 
availability schedule for local checks on check-fraud losses, but it 
also addresses next-day and nonlocal funds availability schedules. In 
addition, it includes questions about the amount of losses by type of 
check fraud, the amount of losses by type of check, and the volume of 
checks cleared. Finally, preliminary research, which has consisted of 
discussions with representatives of trade associations of depository 
institutions and of other industries affected by check fraud and 
reviews of the associations' studies, indicated that several other 
areas should be addressed in the Board's study. Therefore, the proposed 
survey includes questions about losses by age of account, losses that 
could be attributed to organized or professional efforts, and the 
resources that the respondent's institution expends annually to 
prevent, detect, and prosecute check fraud. The data will enable the 
Board to characterize the dynamics of check fraud for the Congress, 
determine the significance of check-fraud losses and check-fraud 
prevention, and to develop recommendations that may assist in reducing 
check-fraud losses. 

[[Page 65658]]


IV. Request for Comments

    The Board requests comments on all aspects of the survey. The Board 
specifically requests comments on the following aspects:
    A. Whether the proposed collection of information is necessary for 
the proper performance of the Federal Reserve's functions, including 
whether the information has practical utility;
    B. Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    C. The accuracy of the Federal Reserve's estimate of the burden of 
the proposed information collection, including the validity of the 
methodology and assumptions used; and
    D. Ways to minimize the burden of the information collection on 
respondents, such as using automated collection techniques or other 
forms of information technology.

    Board of Governors of the Federal Reserve System, December 15, 
1995.
William W. Wiles,
Secretary of the Board.
[FR Doc. 95-30892 Filed 12-19-95; 8:45am]
Billing Code 6210-01-P