[Federal Register Volume 84, Number 94 (Wednesday, May 15, 2019)]
[Notices]
[Pages 21779-21780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09970]
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FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
is adopting a proposal to extend for three years, without revision, the
Recordkeeping Requirements of Regulation H and Regulation K Associated
with the Procedures for Monitoring Bank Secrecy Act Compliance (FR K;
OMB No. 7100-0310). The internal Agency Tracking Number previously
assigned by the Board to this information collection was ``Reg K.'' The
Board is changing the internal Agency Tracking Number to ``FR K'' for
the purpose of consistency.
FOR FURTHER INFORMATION CONTACT:
Federal Reserve Board Clearance Officer--Nuha Elmaghrabi--Office of
the Chief Data Officer, Board of Governors of the Federal Reserve
System, Washington, DC 20551, (202) 452-3829. Telecommunications Device
for the Deaf (TDD) users may contact (202) 263-4869, Board of Governors
of the Federal Reserve System, Washington, DC 20551.
Office of Management and Budget (OMB) Desk Officer--Shagufta
Ahmed--Office of Information and Regulatory Affairs, Office of
Management and
[[Page 21780]]
Budget, New Executive Office Building, Room 10235, 725 17th Street NW,
Washington, DC 20503 or by fax to (202) 395-6974.
SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board
authority under the Paperwork Reduction Act (PRA) to approve and assign
OMB control numbers to collection of information requests and
requirements conducted or sponsored by the Board. Board-approved
collections of information are incorporated into the official OMB
inventory of currently approved collections of information. Copies of
the PRA Submission, supporting statements and approved collection of
information instrument(s) are placed into OMB's public docket files.
The Board 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.
Final Approval Under OMB Delegated Authority of the Extension for Three
Years, Without Revision, of the Following Information Collection
Report title: Recordkeeping Requirements of Regulation H and
Regulation K Associated with the Procedures for Monitoring Bank Secrecy
Act Compliance.
Agency form number: FR K.
OMB control number: 7100-0310.
Frequency: Annually.
Respondents: State member banks; Edge and agreement corporations;
and certain U.S. branches, agencies, and representative offices of
foreign banks supervised by the Board.
Estimated number of respondents: Establish compliance program--1;
maintenance of compliance program--957.
Estimated average hours per response: Establish compliance
program--16; maintenance of compliance program--4.
Estimated annual burden hours: Establish compliance program--16;
maintenance of compliance program--3,828.
General description of report: The Board's Regulation K and
Regulation H require state member banks, Edge and agreement
corporations and, except for a federal branch or a federal agency or a
state branch that is insured by the Federal Deposit Insurance
Corporation, the U.S. branches, agencies, and representative offices of
foreign banks supervised by the Board to establish a written Bank
Secrecy Act (BSA) compliance program that includes the following
components: (1) A system of internal controls to assure ongoing
compliance, (2) independent testing of compliance by the institution's
personnel or by an outside party, (3) the designation of an individual
or individuals for coordinating and monitoring day-to-day compliance,
and (4) training for appropriate personnel.\1\ The compliance program
must be approved by the board of directors of the state member bank,
Edge corporation, or agreement corporation and must be noted in the
institution's minutes. In the case of a branch, agency, or
representative office of a foreign bank, the compliance program may be
approved by the foreign bank's board of directors and noted in the
minutes or approved by a delegee acting under the express authority of
the foreign bank's board of directors.
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\1\ See 12 CFR 208.63(c); these specific requirements are
incorporated by reference in 12 CFR 211.5(m)(1) and 211.24(j)(1).
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Legal authorization and confidentiality: The FR K is authorized
pursuant to the Federal Deposit Insurance Act (12 U.S.C. 1818(s)),
which requires the federal banking agencies, including the Board, to
(1) prescribe regulations requiring the institutions they regulate to
establish and maintain procedures reasonably designed to assure and
monitor compliance with the BSA and (2) to review such procedures
during the course of their examinations.\2\ The FR K is mandatory.
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\2\ The Board's authority in 12 U.S.C. 1818(s) to prescribe
regulations includes the entities required to comply with section
208.63 of the Board's Regulation H (12 CFR 208.63) and sections
211.5(m)(1) and 211.24(j)(1) of the Board's Regulation K (12 CFR
211.5(m)(1) and 12 CFR 211.24(j)(1)).
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Because the Federal Reserve will not collect this information,
confidentiality issues would normally not arise. Because the records
will be retained at banking organizations, the Freedom of Information
Act (FOIA) will only be implicated if the Board's examiners retain a
copy of the record as part of an examination or supervision of a
banking institution. In that case, the records would be exempt from
disclosure under exemption 8 of the FOIA, which protects examination
materials from disclosure (5 U.S.C. 552(b)(8)). Exemption 4 of the
FOIA, which protects confidential financial information, may also be
applicable (5 U.S.C. 552(b)(4)).
Current actions: On February 5, 2019, the Board published a notice
in the Federal Register (84 FR 1731) requesting public comment for 60
days on the extension, without revision, of the FR K. The comment
period for this notice expired on April 8, 2019. The Board did not
receive any comments.
Board of Governors of the Federal Reserve System, May 9, 2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-09970 Filed 5-14-19; 8:45 am]
BILLING CODE 6210-01-P