[Federal Register Volume 62, Number 42 (Tuesday, March 4, 1997)]
[Notices]
[Page 9767]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5286]


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FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL


Interagency Policy Statement Regarding Uniform Guideline on 
Internal Control for Foreign Exchange in Commercial Banks

AGENCIES: Office of the Comptroller of the Currency (OCC), Department 
of the Treasury; Board of Governors of the Federal Reserve System 
(FRB); and Federal Deposit Insurance Corporation (FDIC).

ACTION: Withdrawal of guideline.

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SUMMARY: The OCC, FRB, and FDIC (``the Agencies'') are withdrawing 
their joint guideline entitled: ``Interagency Policy Statement 
Regarding Uniform Guideline on Internal Control for Foreign Exchange in 
Commercial Banks,'' dated May 22, 1980 (45 FR 42370, June 24, 1980) 
(``the Guideline'') because it is considered outdated and has been 
superseded by other pronouncements from each of the agencies.

EFFECTIVE DATE: The removal of the Guideline is effective March 4, 
1997.

FOR FURTHER INFORMATION CONTACT:

FRB: Michael Martinson, Assistant Director, (202)/452-3640), or Joe 
Sciortino, Supervisory Financial Analyst, (202/452-2294), Board of 
Governors of the Federal Reserve System, 20th and C Streets, N.W., 
Washington, D.C. 20551.
FDIC: Christie Sciacca, Assistant Director, (202/898-3638), Federal 
Deposit Insurance Corporation, 550 17th St., N.W., Washington, D.C. 
20429.
OCC: Leon Tarrant, Manager, (202/874-4730), Office of the Comptroller 
of the Currency, 250 E Street, S.W., Washington D.C. 20219.

SUPPLEMENTARY INFORMATION: The policy set forth in the Guideline was 
developed to provide uniformity among the Agencies in establishing 
minimum standards for documentation, accounting, and auditing for 
foreign exchange operations in U.S. commercial banks. The Guideline was 
not intended to be all encompassing as to policies and procedures 
expected to be found in the most active market participants. Rather, it 
called for each bank to develop a system of internal control 
commensurate with the risks to which it is exposed.
    The Guideline has become outdated in view of numerous changes that 
have subsequently taken place, including: the scope and depth of 
foreign exchange trading activities in banks, new product developments, 
significant improvements in automated trading systems, and the 
management of the business along product lines. These conditions 
prompted each agency to issue subsequent pronouncements and updated 
examination and/or policy procedures for U.S. banks as well as for 
foreign banks doing business in the United States.

The Agencies' Action

    The Agencies hereby withdraw the Guideline.

    Dated: February 27, 1997.
Joe M. Cleaver,
Executive Secretary, Federal Financial Institutions Examination 
Council.
[FR Doc. 97-5286 Filed 3-3-97; 8:45 am]
BILLING CODE 6210-01-P