[Federal Register Volume 84, Number 96 (Friday, May 17, 2019)]
[Notices]
[Pages 22494-22495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-10246]
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FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice, request for comment.
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SUMMARY: The Board of Governors of the Federal Reserve System (Board)
invites comment on a proposal to extend for three years, without
revision, the Reporting, Recordkeeping, and Disclosure Requirements
Associated with Regulation NN (FR NN; OMB No. 7100-0353).
DATES: Comments must be submitted on or before July 16, 2019.
ADDRESSES: You may submit comments, identified by FR NN, by any of the
following methods:
Agency website: http://www.federalreserve.gov. Follow the
instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
Email: [email protected]. Include OMB
number in the subject line of the message.
FAX: (202) 452-3819 or (202) 452-3102.
Mail: Ann E. Misback, Secretary, Board of Governors of the
Federal Reserve System, 20th Street and Constitution Avenue, NW,
Washington, DC 20551.
All public comments are available on the Board's website at http://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted, unless
modified for technical reasons. Accordingly, your comments will not be
edited to remove any identifying or contact information. Public
comments may also be viewed electronically or in paper in Room 146,
1709 New York Avenue NW, Washington, DC 20006, between 9:00 a.m. and
5:00 p.m. on weekdays. For security reasons, the Board requires that
visitors make an appointment to inspect comments. You may do so by
calling (202) 452-3684. Upon arrival, visitors will be required to
present valid government-issued photo identification and to submit to
security screening in order to inspect and photocopy comments.
Additionally, commenters may send a copy of their comments to the
Office of Management and Budget (OMB) Desk Officer--Shagufta Ahmed--
Office of Information and Regulatory Affairs, Office of Management and
Budget, New Executive Office Building, Room 10235, 725 17th Street NW,
Washington, DC 20503, or by fax to (202) 395-6974.
FOR FURTHER INFORMATION CONTACT: A copy of the Paperwork Reduction Act
(PRA) OMB submission, including the proposed reporting form and
instructions, supporting statement, and other documentation will be
placed into OMB's public docket files, if approved. These documents
will also be made available on the Board's public website at http://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested
from the agency clearance officer, whose name appears below.
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.
SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board
[[Page 22495]]
authority under the PRA to approve and assign OMB control numbers to
collection of information requests and requirements conducted or
sponsored by the Board. In exercising this delegated authority, the
Board is directed to take every reasonable step to solicit comment. In
determining whether to approve a collection of information, the Board
will consider all comments received from the public and other agencies.
Request for Comment on Information Collection Proposal
The Board invites public comment on the following information
collection, which is being reviewed under authority delegated by the
OMB under the PRA. Comments are invited on the following:
a. Whether the proposed collection of information is necessary for
the proper performance of the Board's functions, including whether the
information has practical utility;
b. The accuracy of the Board's estimate of the burden of the
proposed information collection, including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality, utility, and clarity of the
information to be collected;
d. Ways to minimize the burden of information collection on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
e. Estimates of capital or startup costs and costs of operation,
maintenance, and purchase of services to provide information.
At the end of the comment period, the comments and recommendations
received will be analyzed to determine the extent to which the Board
should modify the proposal.
Proposal Under OMB Delegated Authority To Extend For Three Years,
Without Revision, the Following Information Collection
Report title: Reporting, Recordkeeping, and Disclosure Requirements
Associated with Regulation NN.
Agency form number: FR NN.
OMB control number: 7100-0353.
Frequency: Event generated.
Respondents: Banking institutions.
Estimated number of respondents: Reporting: 1; recordkeeping: 2;
disclosure: 2.
Estimated average hours per response: Reporting: 16; recordkeeping:
183; disclosure: 787.
Estimated annual burden hours: 1,956.
General description of report: Regulation NN includes certain
reporting, recordkeeping, and disclosure requirements for banking
institutions that elect to provide foreign currency exchange services
to retail consumers. The regulation applies to state member banks,
uninsured state-licensed branches of foreign banks, financial holding
companies, bank holding companies, savings and loan holding companies,
agreement corporations, and Edge Act corporations (collectively,
``banking institutions'') that engage in retail foreign exchange
transactions.
Legal authorization and confidentiality: The reporting,
recordkeeping, and disclosure requirements in Regulation NN are
authorized pursuant to section 2(c)(2)(E) of the Commodity Exchange Act
(``CEA''), 7 U.S.C. 2(c)(2)(E). Section 2(c)(2)(E) of the CEA prohibits
a United States financial institution and its related persons under the
supervision of a Federal regulatory agency, such as the Board, from
offering or entering into certain types of foreign exchange
transactions with retail customers except pursuant to a rule or
regulation prescribed by the appropriate Federal regulatory agency
allowing the transaction under such terms and conditions as the Federal
regulatory agency shall prescribe.
Regulation NN's reporting requirement (12 CFR 240.4), recordkeeping
requirements (12 CFR 240.7, 240.9(b)(2), and 240.13(a)) and disclosure
requirements (240.5(a), 240.6, 240.7, 240.9(b)(2), 240.10, 240.13(a) &
(c)-(d), 240.15, and 240.16(a) and (b)) are mandatory for banking
institutions that engage in retail foreign exchange transactions.
The reporting requirement under section 240.4 of Regulation NN
requires a banking institution to provide a prior written notice to the
Board that includes information concerning customer due diligence; the
policies and procedures for haircuts to be applied to noncash margin;
information concerning new product approvals; and information on
addressing conflicts of interest. The disclosure of this information is
reasonably likely to result in substantial competitive harm to the
banking institution, and therefore, may be kept confidential under
exemption (b)(4) of the Freedom of Information Act (``FOIA''), which
protects ``trade secrets and commercial or financial information
obtained from a person [that is] privileged or confidential'' (5 U.S.C.
552(b)(4)). In addition, the prior written notice must also include a
resolution of the banking institution's board of directors certifying
that the institution has written policies, procedures, and risk
measurement and management systems and controls in place to ensure
retail foreign exchange transactions are conducted in a safe and sound
manner and in compliance with Regulation NN. Generally, this resolution
by the board of directors would not be accorded confidential treatment.
If confidential treatment is requested by a banking institution, the
Board will review the request to determine if confidential treatment is
appropriate.
The recordkeeping and disclosures required under sections 240.5(a),
240.6, 240.7, 240.9(b)(2), 240.10, 240.13(a) & (c)-(d), 240.15, and
240.16(a) and (b) of Regulation NN generally are not submitted to the
Board. Accordingly, no confidentiality issues will normally arise under
the FOIA. In the event such records or disclosures are obtained by the
Federal Reserve through the examination or enforcement process, such
information may be kept confidential under exemption 8 of the FOIA,
which protects information contained in or related to an examination of
a financial institution (5 U.S.C. 552(b)(8)).
Board of Governors of the Federal Reserve System, May 14, 2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-10246 Filed 5-16-19; 8:45 am]
BILLING CODE 6210-01-P