[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