[Federal Register Volume 85, Number 100 (Friday, May 22, 2020)]
[Rules and Regulations]
[Pages 31050-31053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10166]


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DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 801

[200507-0130]
RIN 0691-AA90


International Services Surveys: BE-180 Benchmark Survey of 
Financial Services Transactions Between U.S. Financial Services 
Providers and Foreign Persons

AGENCY: Bureau of Economic Analysis, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule amends regulations of the Department of 
Commerce's Bureau of Economic Analysis (BEA) to renew reporting 
requirements for the mandatory BE-180 Benchmark Survey of Financial 
Services Transactions between U.S. Financial Services Providers and 
Foreign Persons. This survey applies to the 2019 fiscal reporting year. 
This mandatory benchmark survey, conducted under the authority of the 
International Investment and Trade in Services Survey Act, covers the 
universe of transactions in financial services and is BEA's most 
comprehensive survey of such transactions. For the 2019 benchmark 
survey, BEA is making several changes in the data items collected and 
the design of the survey form.

DATES: This final rule is effective June 12, 2020.

FOR FURTHER INFORMATION CONTACT: Christopher Stein, Chief, Services 
Surveys Branch (BE-50), Balance of Payments Division, Bureau of 
Economic Analysis, U.S. Department of Commerce, 4600 Silver Hill Rd., 
Washington, DC 20233; email [email protected] or phone (301) 
278-9189.

SUPPLEMENTARY INFORMATION: On February 25, 2020, BEA published a notice 
of proposed rulemaking that set forth the revised reporting criteria 
for the BE-180 Benchmark Survey of Financial Services Transactions 
between U.S. Financial Services Providers and Foreign Persons (85 FR 
10628). This final rule amends 15 CFR part 801 to set forth the 
reporting requirements for the BE-180 Benchmark Survey of Financial 
Services Transactions between U.S. Financial Services Providers and 
Foreign Persons.
    The BE-180 Benchmark Survey of Financial Services Transactions 
between U.S. Financial Services Providers and Foreign Persons is a

[[Page 31051]]

mandatory survey and is conducted once every five years by BEA under 
the authority provided by the International Investment and Trade in 
Services Survey Act (Pub. L. 94-472, 90 Stat. 2059, 22 U.S.C. 3101-
3108, as amended) (the Act), and by Section 5408 of the Omnibus Trade 
and Competitiveness Act of 1988 (15 U.S.C. 4908(b)). The Act provides 
that data reported to BEA on this survey are confidential and may be 
used only for analytical and statistical purposes. Without prior 
written permission from the survey respondent, the data collected 
cannot be presented in a manner that allows individual responses to be 
identified. An individual respondent's report cannot be used for 
purposes of taxation, investigation, or regulation. Copies retained by 
BEA are exempt from legal process. Per the Federal Cybersecurity 
Enhancement Act of 2015 (Division N, Title II, Subtitle B, Pub. L. 114-
113), a respondent's data are protected from cybersecurity risks 
through security monitoring of the BEA information systems.
    A response is required from persons subject to the reporting 
requirements of the BE-180, whether or not they are contacted by BEA, 
to ensure complete coverage of transactions in financial services 
between U.S. persons (any individual or organization subject to the 
jurisdiction of the United States) and foreign persons.
    In 2012, BEA established regulatory guidelines for collecting data 
on international trade in services and direct investment (77 FR 24373; 
April 24, 2012). This final rule, as published, would amend those 
regulations to require a response from persons subject to the reporting 
requirements of the BE-180, whether or not they are contacted by BEA.
    The BE-180 benchmark survey is intended to cover the universe of 
financial services transactions of U.S. financial services companies 
with foreign persons and is BEA's most comprehensive survey of such 
transactions. In nonbenchmark years, the universe of estimates covering 
these transactions are derived from the sample data reported on BEA's 
BE-185 Quarterly Survey of Financial Services Transactions between U.S. 
Financial Services Providers and Foreign Persons. The BE-185 and the 
BE-180 collect similar information. BEA uses cutoff sampling for the 
BE-185, meaning that respondents must report on the BE-185 only if they 
had combined sales to foreign persons that exceeded $20 million or 
combined purchases from foreign persons that exceeded $15 million in 
any one of the 10 covered financial services transaction categories 
during fiscal year 2019. The sample of respondents that file on a 
quarterly basis throughout fiscal year 2019 will also be required to 
report on the 2019 BE-180 survey. BEA reconciles the annual data from 
the BE-180 survey with the quarterly data reported on the BE-185 survey 
by comparing quarterly to annual submissions that are typically 
completed using audited information.
    The benchmark data, which includes data from respondents not 
subject to filing on an ongoing quarterly basis, will be used, in 
conjunction with quarterly data collected on the companion BE-185 
survey, to produce quarterly estimates of financial services 
transactions for BEA's international transactions accounts, national 
income and product accounts, and industry accounts. The data collected 
through the BE-180 are also used to monitor U.S. trade in financial 
services, to analyze the impact of U.S. trade in financial services on 
the U.S. economy and on foreign economies, to compile and improve the 
U.S. economic accounts, to support U.S. commercial policy on trade in 
services, to conduct trade promotion activities, and to improve the 
ability of U.S. businesses to identify and evaluate market 
opportunities.
    A full list of the financial services transactions covered by the 
BE-180 survey can be found in the regulatory text of this final rule in 
new Sec.  801.13(g). This includes brokerage services, underwriting and 
private placement services related to equity transactions and debt 
transactions, financial management services, credit-related services, 
credit card services, financial advisory and custody services, 
securities lending services, electronic funds transfer services, and 
other financial services.

Description of Changes

    This final rule amends the regulations at 15 CFR part 801 by adding 
new Sec.  801.13 to set forth the reporting requirements for the BE-180 
benchmark survey, and amends the survey form for the BE-180 benchmark 
survey to satisfy changing data needs and to improve data quality and 
the effectiveness and efficiency of data collections. These amendments 
include several changes in data items collected and the design of the 
survey form relative to the 2014 benchmark survey.
    BEA changes the reporting requirements for respondents with 
transactions in covered services below the threshold for mandatory 
reporting on the schedule(s) of the survey ($3 million in combined 
sales and/or purchases for fiscal year 2019). For the 2019 BE-180, all 
respondents, regardless of the amount of their transactions in covered 
services are required to provide a total dollar amount for their sales 
and purchases, as applicable, by transaction type.
    BEA adds the following items to the benchmark survey form:
    (1) Question to request the Legal Entity Identifier (LEI) of the 
survey respondent. Respondents will be asked to provide their 
20[hyphen]digit LEI, if they have one. Obtaining an LEI is not required 
for the purpose of filing the survey.
    (2) Questions to collect financial management transactions by type 
of account. Respondents who had financial management transactions 
during the fiscal year will be required to disaggregate these 
transactions, for both sales and purchases, as applicable, by type of 
account (for example, mutual funds; pension funds; exchange-traded 
funds; private equity funds; corporate portfolio; individual portfolio; 
hedge funds; and trusts).
    (3) Questions about the timing of performance fees. Respondents who 
had financial management transactions during fiscal year 2019 will be 
required to provide additional information about whether these 
transactions included fees that are tied to performance and, if so, 
about the timing of those performance fees. Respondents with 
performance fees (receipts and/or payments) during fiscal year 2019 
will be required to distribute them, in a table, based on the 
quarter(s) in which they were received and/or paid.
    (4) Mandatory questions to collect information on financial 
services that were conducted remotely, e.g., where both the supplier 
and the consumer were in different territories when the service was 
delivered. This information will be collected for both sales of 
services performed remotely for foreign persons and for purchases of 
services performed remotely by foreign persons. For transactions in the 
financial services categories covered by the survey, respondents will 
be required to check one of several boxes identifying the percentage of 
their transactions that were conducted remotely, and to identify if 
this information was sourced from their accounting records or from 
recall/general knowledge. Respondents will also be required to check 
one of two boxes identifying how the remainder of the services not 
reported as 100% remotely transacted were typically performed (e.g., by 
the provider traveling to the consumer or by the consumer traveling to 
the provider).
    (5) A question to identify respondents engaged in transactions 
related to

[[Page 31052]]

cryptocurrency. BEA adds a single question asking respondents to 
identify, of their 2019 cross-border financial services reported in the 
required transaction categories, if any were related to cryptocurrency 
activities.
    In addition, BEA has redesigned the format and wording of the 
survey. The new survey design incorporates improvements that have been 
made to other BEA surveys. Some improvements are the result of a recent 
review conducted with selected survey respondents during the planning 
for the 2017 BE-120 Benchmark Survey of Transactions in Selected 
Services and Intellectual Property with Foreign Persons. BE-180 
Benchmark Survey instructions and data item descriptions have been 
changed to improve clarity and ensure that the survey form is 
consistent with other BEA surveys.

Change to the Regulatory Text of the Proposed Rule

    BEA received one comment on the proposed rule which was generally 
supportive of the rule. The commenter made one suggestion which was 
outside of the scope of this rulemaking which may be considered for 
future applications.
    We note that we have made a change to paragraph (h), entitled ``Due 
date'', in new Sec.  801.13, as found in the regulatory text of the 
proposed rule. The phrase ``July 31, 2020 (or by August 31, 2020 for 
respondents that use BEA's eFile system)'' has been replaced with 
``September 30, 2020 (or by October 30, 2020 for respondents that use 
BEA's eFile system).'' BEA made this change in this final rule to 
provide respondents additional time to comply with the requirements of 
the new section.

Executive Order 12866

    This final rule has been determined to be not significant for 
purposes of Executive Order 12866. This rule is not an Executive Order 
13771 regulatory action because this rule is not significant for 
purposes of Executive Order 12866.

Executive Order 13132

    This final rule does not contain policies with Federalism 
implications sufficient to warrant preparation of a Federalism 
assessment under Executive Order 13132.

Paperwork Reduction Act

    The collection-of-information in this final rule was submitted to 
the Office of Management and Budget (OMB) pursuant to the Paperwork 
Reduction Act of 1995, 44 U.S.C. 3501-3520 (PRA). OMB approved the 
reinstatement, with change, of the information collection under OMB 
control number 0608-0062.
    Notwithstanding any other provisions of law, no person is required 
to respond to, nor shall any person be subject to a penalty for failure 
to comply with, a collection of information subject to the requirements 
of the PRA unless that collection displays a currently valid OMB 
control number.
    The BE-180 survey is expected to result in the filing of reports 
from approximately 7,000 respondents. Approximately 5,500 respondents 
would report mandatory data on the survey, and approximately 1,500 
would file exemption claims. The respondent burden for this collection 
of information would vary from one respondent to another, but is 
estimated to average (1) 11 hours for the 1,875 respondents that file 
mandatory or voluntary data by country and affiliation for relevant 
transaction types on the mandatory schedules; (2) 2 hours for the 3,625 
respondents that file mandatory data by transaction type but not by 
country or affiliation; and (3) 1 hour for the 1,500 exemption claims. 
These burden-hour estimates consider time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection of information. 
Thus, the total respondent burden for this survey is estimated at 
29,375 hours, or approximately 4 hours per response (29,375 hours/7,000 
respondents), compared to 27,500 hours, or about 3 hours per response 
(27,500 hours/8,750 respondents) for the 2014 BE-180 benchmark survey. 
The increase in burden hours is due to estimated changes in the 
expected response composition of the respondent universe from 2014 to 
2019, as well as changes in the content of the survey.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in the 
final rule should be sent to both BEA via email at 
[email protected] and to OMB, O.I.R.A., Paperwork Reduction 
Project 0608-0073, Attention PRA Desk Officer for BEA, Kerrie Leslie, 
via email at [email protected].

Regulatory Flexibility Act

    The Chief Counsel for Regulation, Department of Commerce, certified 
to the Chief Counsel for Advocacy, Small Business Administration, at 
the proposed rule stage that this action will not have a significant 
economic impact on a substantial number of small entities. No comments 
were received on that certification or on the economic impacts of this 
rule more generally. Therefore, no regulatory flexibility analysis is 
required and none has been prepared.

List of Subjects in 15 CFR Part 801

    Economic statistics, Foreign trade, International transactions, 
Penalties, Reporting and recordkeeping requirements.

    Dated: May 7, 2020.
Paul W. Farello,
Associate Director of International Economics, Bureau of Economic 
Analysis.

    For reasons set forth in the preamble, BEA amends 15 CFR part 801 
as follows:

PART 801--SURVEY OF INTERNATIONAL TRADE IN SERVICES BETWEEN U.S. 
AND FOREIGN PERSONS AND SURVEYS OF DIRECT INVESTMENT

0
 1. The authority citation for 15 CFR part 801 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 15 U.S.C. 4908; 22 U.S.C. 3101-3108; 
E.O. 11961 (3 CFR, 1977 Comp., p. 86), as amended by E.O. 12318 (3 
CFR, 1981 Comp. p. 173); and E.O. 12518 (3 CFR, 1985 Comp. p. 348).


0
 2. Revise Sec.  801.3 to read as follows:


Sec.  801.3  Reporting requirements.

    Except for surveys subject to rulemaking in Sec. Sec.  801.7, 
801.8, 801.9, 801.10, 801.11, 801.12, and 801.13, reporting 
requirements for all other surveys conducted by the Bureau of Economic 
Analysis shall be as follows:
    (a) Notice of specific reporting requirements, including who is 
required to report, the information to be reported, the manner of 
reporting, and the time and place of filing reports, will be published 
by the Director of the Bureau of Economic Analysis in the Federal 
Register prior to the implementation of a survey;
    (b) In accordance with section 3104(b)(2) of title 22 of the United 
States Code, persons notified of these surveys and subject to the 
jurisdiction of the United States shall furnish, under oath, any report 
containing information which is determined to be necessary to carry out 
the surveys and studies provided for by the Act; and
    (c) Persons not notified in writing of their filing obligation by 
the Bureau of Economic Analysis are not required to complete the 
survey.

0
 3. Add Sec.  801.13 to read as follows:

[[Page 31053]]

Sec.  801.13  Rules and regulations for the BE-180 Benchmark Survey of 
Financial Services Transactions between U.S. Financial Services 
Providers and Foreign Persons--2019.

    The BE-180 Benchmark Survey of Financial Services Transactions 
between U.S. Financial Services Providers and Foreign Persons will be 
conducted covering fiscal year 2019. All legal authorities, provisions, 
definitions, and requirements contained in Sec. Sec.  801.1 and 801.2 
and 801.4 through 801.6 are applicable to this survey. Specific 
additional rules and regulations for the BE-180 survey are given in 
paragraphs (a) through (e) of this section. More detailed instructions 
are given on the report form and in instructions accompanying the 
report form.
    (a) Response required. A response is required from persons subject 
to the reporting requirements of the BE-180 Benchmark Survey of 
Financial Services Transactions between U.S. Financial Services 
Providers and Foreign Persons--2019, contained herein, whether or not 
they are contacted by BEA. Also, a person, or its agent, that is 
contacted by BEA about reporting on this survey, either by sending a 
report form or by written inquiry, must respond in writing pursuant to 
this section. This may be accomplished by:
    (1) Completing and returning the BE-180 by the due date of the 
survey; or
    (2) If exempt, by completing the determination of reporting status 
section of the BE-180 survey and returning it to BEA by the due date of 
the survey.
    (b) Who must report. A BE-180 report is required of each U.S. 
person that is a financial services provider or intermediary, or whose 
consolidated U.S. enterprise includes a separately organized 
subsidiary, or part, that is a financial services provider or 
intermediary, and that had financial services transactions with foreign 
persons in the categories covered by the survey during its 2019 fiscal 
year.
    (c) BE-180 definition of financial services provider. The 
definition of financial services provider used for this survey is 
identical to the definition of the term as used in the North American 
Industry Classification System, United States, 2012, Sector 52-Finance 
and Insurance, and holding companies that own or influence, and are 
principally engaged in making management decisions for these firms 
(part of Sector 55-Management of Companies and Enterprises). For 
example, companies and/or subsidiaries and other separable parts of 
companies in the following industries are defined as financial services 
providers: Depository credit intermediation and related activities 
(including commercial banking, savings institutions, credit unions, and 
other depository credit intermediation); non-depository credit 
intermediation (including credit card issuing, sales financing, and 
other non-depository credit intermediation); activities related to 
credit intermediation (including mortgage and nonmortgage loan brokers, 
financial transactions processing, reserve, and clearinghouse 
activities, and other activities related to credit intermediation); 
securities and commodity contracts intermediation and brokerage 
(including investment banking and securities dealing, securities 
brokerage, commodity contracts and dealing, and commodity contracts 
brokerage); securities and commodity exchanges; other financial 
investment activities (including miscellaneous intermediation, 
portfolio management, investment advice, and all other financial 
investment activities); insurance carriers; insurance agencies, 
brokerages, and other insurance related activities; insurance and 
employee benefit funds (including pension funds, health and welfare 
funds, and other insurance funds); other investment pools and funds 
(including open-end investment funds, trusts, estates, and agency 
accounts, real estate investment trusts, and other financial vehicles); 
and holding companies that own, or influence the management decisions 
of, firms principally engaged in the aforementioned activities.
    (d) What must be reported. (1) A U.S. person that had combined 
sales to, or purchases from, foreign persons that exceeded $3 million 
in the financial services categories covered by the survey during its 
2019 fiscal year, on an accrual basis, is required to provide data on 
total sales and/or purchases of each of the covered types of financial 
services and must disaggregate the totals by country and by 
relationship to the foreign transactor (foreign affiliate, foreign 
parent group, or unaffiliated). The determination of whether a U.S. 
financial services provider is subject to this reporting requirement 
can be based on the judgment of knowledgeable persons in a company who 
can identify reportable transactions on a recall basis, with a 
reasonable degree of certainty, without conducting a detailed manual 
records search.
    (2) A U.S. person that had combined sales to, or purchases from, 
foreign persons that were $3 million or less in the financial services 
categories covered by the survey during its 2019 fiscal year, on an 
accrual basis, is required to provide the total sales and/or purchases 
for each type of transaction in which they engaged. The $3 million 
threshold for sales and purchases should be applied to financial 
services transactions with foreign persons by all parts of the 
consolidated domestic U.S. Reporter. Because the $3 million threshold 
applies separately to sales and purchases, the mandatory reporting 
requirement may apply only to sales, only to purchases, or to both.
    (e) Voluntary reporting of financial services transactions. If, 
during fiscal year 2019, combined sales and purchases were $3 million 
or less, on an accrual basis, the U.S. person may, in addition to 
providing the required total for each type of transaction, report sales 
at a country and affiliation level of detail on the applicable 
mandatory schedule(s). The estimates can be judgmental, that is, based 
on recall, without conducting a detailed records search.
    (f) Exemption claims. Any U.S. person that receives the BE-180 
survey form from BEA, but is not subject to the reporting requirements, 
must file an exemption claim by completing the determination of 
reporting status section of the BE-180 survey and returning it to BEA 
by the due date of the survey. This requirement is necessary to ensure 
compliance with reporting requirements and efficient administration of 
the Act by eliminating unnecessary follow-up contact.
    (g) Covered types of financial services. Financial services covered 
by the BE-180 survey consist of transactions between U.S. financial 
services companies and foreign persons for:
    (1) Brokerage services related to equity transactions;
    (2) Other brokerage services;
    (3) Underwriting and private placement services related to equity 
transactions;
    (4) Underwriting and private placement services related to debt 
transactions;
    (5) Financial management services;
    (6) Credit-related services, except credit card services;
    (7) Credit card services;
    (8) Financial advisory and custody services;
    (9) Securities lending services;
    (10) Electronic funds transfer services; and
    (11) Other financial services.
    (h) Due date. A fully completed and certified BE-180 report, or 
qualifying exemption claim with the determination of reporting status 
section completed, is due to be filed with BEA not later than September 
30, 2020 (or by October 30, 2020 for respondents that use BEA's eFile 
system).

[FR Doc. 2020-10166 Filed 5-21-20; 8:45 am]
 BILLING CODE 3510-06-P