[Federal Register Volume 87, Number 108 (Monday, June 6, 2022)]
[Notices]
[Pages 34265-34268]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-12032]


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FEDERAL RESERVE SYSTEM


Privacy Act of 1974; System of Records

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice of a modified system of records.

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SUMMARY: Pursuant to the provisions of the Privacy Act of 1974, notice 
is given that the Board of Governors of the Federal Reserve System 
(Board) proposes to modify an existing system of records entitled, 
BGFRS-36, ``FRB--

[[Page 34266]]

Federal Reserve Application Name Check System.'' The Board uses BGFRS-
36 to track the processing of applications, notifications, and other 
filings submitted by financial institutions supervised by the Board, 
including through the Federal Reserve Banks.

DATES: Comments must be received on or before July 6, 2022. This 
revised system of records will become effective July 6, 2022, without 
further notice, unless comments dictate otherwise. The Office of 
Management and Budget (OMB), which has oversight responsibility under 
the Privacy Act, requires a 30-day period prior to publication in the 
Federal Register in which to review the system and to provide any 
comments to the agency. The public is then given a 30-day period in 
which to comment, in accordance with 5 U.S.C. 552a(e)(4) and (11).

ADDRESSES: You may submit comments, identified by BGFRS-36 ``FRB- 
Federal Reserve Application Name Check System,'' by any of the 
following methods:
     Agency website: https://www.federalreserve.gov. Follow the 
instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Email: [email protected]. Include SORN name 
and 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.
    www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as 
submitted, unless modified for technical reasons, or to remove 
sensitive personally identifiable information. Public comments may also 
be viewed electronically and in-person in Room M-4365A, 2001 C St. NW, 
Washington, DC 20551, between 9:00 a.m. and 5:00 p.m. during federal 
business weekdays.

FOR FURTHER INFORMATION CONTACT: David B. Husband, Senior Counsel, 
(202) 530-6270, or [email protected]; Legal Division, Board of 
Governors of the Federal Reserve System, 20th Street and Constitution 
Avenue NW, Washington, DC 20551. If you are deaf, hard of hearing, or 
have a speech disability, please dial 7-1-1 to access telecommunication 
relay services.

SUPPLEMENTARY INFORMATION: This system allows Federal Reserve Bank 
staff (acting under authority delegated by the Board) and Board staff 
(collectively, ``FRS staff'') to manage the processing of applications, 
notices, or other filings that involve individuals and are submitted by 
or associated with financial institutions for approval or other action. 
As part of the review and approval process for these filings, FRS staff 
evaluate the fitness of individuals who propose to be associated with a 
financial institution. The evaluation involves the conduct of 
background checks designed to uncover criminal activities of these 
individuals. The FRS staff use the information stored and processed by 
this system to monitor and track the progress and status of these 
fitness evaluations.
    First, the Board is amending the system of records to update the 
authority for the maintenance of the system. The Board is adding a 
citation to the Home Owner's Loan Act (12 U.S.C. 1467a) and the Board's 
Regulation LL (12 CFR part 238) because savings and loan holding 
companies also submit applications, notices, and proposals to the Board 
to evaluate and consider the proposed officers, directors, principal 
shareholders, or other individuals associated with the holding company. 
This addition aligns the cited statutory authority with the broad 
purpose of the system, which has been and continues to be the 
collection of information from ``holding companies'' generally. With 
this change, the cited authority now includes express citations for 
bank and savings and loan holding companies rather than bank holding 
companies only.
    The Board is also amending the system-specific routine uses to 
state that the name check results, which are part of the fitness 
evaluation, may be disclosed in accordance with applicable Board 
routine uses. The Board is making this change as the Board has 
determined that name check results should be treated the same as other 
information obtained in the fitness evaluation and therefore should be 
subject to disclosure in accordance with the routine uses applicable to 
the system. While the Board does not intend to typically share the name 
check results, this change provides the Board the ability to share name 
check results in accordance with the published routine uses if needed. 
The Board is also amending system-specific routine use number two to 
permit the sharing of the information covered by this system with other 
bank regulatory agencies as necessary on a confidential basis 
consistent with explicit information sharing agreements rather than for 
regulatory comment purposes only because the Board works with those 
agencies on supervisory and regulatory matters beyond those focused on 
regulatory comments. The Board is also eliminating the reference to 
``thrift regulatory agencies'' in the phrase ``other bank and thrift 
regulatory agencies'' as outdated because the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (Pub. L. 111-203, 124 Stat. 1376 
(2010)) dissolved the Office of Thrift Supervision. Thus, the Board 
proposes to revise routine use two to read: ``to disclose certain 
information to other bank regulatory agencies pursuant to explicit 
information sharing agreements.''
    The Board is also taking the opportunity to amend the system to 
generally harmonize terms, note that records are no longer stored in 
paper form (other than historical records) but in electronic form, and 
update the category of individuals to more clearly match the purpose of 
the system. The Board is also updating the contact information for the 
system manager, the record source categories, the system location 
information, and the policies and practices for retrieval of records.
    The Board is also making technical changes to BGFRS-36 consistent 
with the template laid out in OMB Circular No. A-108. Accordingly, the 
Board is making technical corrections and non-substantive language 
revisions to the following categories: ``Policies and Practices for 
Storage of Records,'' Policies and Practices for Retrieval of 
Records,'' ``Policies and Practices for Retention and Disposal of 
Records,'' ``Administrative, Technical and Physical Safeguards,'' 
``Record Access Procedures,'' ``Contesting Record Procedures,'' and 
``Notification Procedures.'' The Board is also adding the following new 
fields: ``Security Classification'' and ``History.''

SYSTEM NAME AND NUMBER:
    BGFRS-36 ``FRB--Federal Reserve Application Name Check System''

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    The Board maintains the electronic records at the following 
location: East Rutherford Data Center, 100 Orchard Street, East 
Rutherford, NJ 07073.

SYSTEM MANAGER(S):
    Susan Motyka, Deputy Associate Director, Division of Supervision 
and Regulation, 20th Street and Constitution Avenue NW, Washington, DC 
20551, at (202) 452 -5280 or [email protected].

[[Page 34267]]

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Sections 9, 19, 25 and 25A of the Federal Reserve Act (12 U.S.C. 
321-328, 466, 601-604(a), and 611-631); the Change in Bank Control Act 
(12 U.S.C. 1817(j)); Section 18(c) of the Bank Merger Act (12 U.S.C. 
1828(c)); Section 32 of the Federal Deposit Insurance Act (12 U.S.C. 
1831i); Sections 3, 4, and 5 of the Bank Holding Company Act of 1956 
(12 U.S.C. 1842, 1843, and 1844); Section 10 of the Home Owners' Loan 
Act (12 U.S.C. 1467a); Section 5 of the Bank Service Company Act (12 
U.S.C. 1865); Sections 7, 8, and 10 of the International Banking Act 
(12 U.S.C. 3105, 3106, and 3107); the Board's Regulation H (12 CFR part 
208); the Board's Regulation K (12 CFR part 211); the Board's 
Regulation L (12 CFR part 212); the Board's Regulation LL (12 CFR part 
238); the Board's Regulation Y (12 CFR part 225); and Executive Order 
9397.

PURPOSE(S) OF THE SYSTEM:
    These records are collected and maintained to assist the FRS in 
evaluating the proposed officers, directors, principal shareholders, or 
other individuals associated with a depository institution, holding 
company, or other foreign or domestic entity in connection with 
consideration of various regulatory applications, notices, or filings. 
The FRS uses these records, along with other information, to determine 
whether the filing meets the statutory factors for approval.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals, such as directors, officers, employees, controlling 
shareholders, or persons who are the subject of the background checks 
designed to uncover criminal activities bearing on the individual's 
fitness to be a director, officer, employee, or controlling 
shareholder, or other individual associated with a depository 
institution, holding company, or other foreign or domestic entity.

CATEGORIES OF RECORDS IN THE SYSTEM:
    The categories of records in the system include: name; social 
security number, passport number, or other identifying number; address; 
occupation; birth city, state, and country; country(ies) of 
citizenship; date of birth; names of related companies and the person's 
role at those companies; an indication whether each agency conducting a 
check had any information on the person and the results of the name 
check; and name and address of the financial institution that submitted 
the application with which the person was associated.

RECORD SOURCE CATEGORIES:
    Information is provided by the individuals to whom the record 
pertains or their agents (such as law firms or consultants) during the 
regulatory application, notice, or filing process. The results of a 
background check are also provided by the relevant agency. In addition, 
FRS staff, as part of the due diligence process associated with the 
review of a particular filing, performs name checks on the individuals 
to be involved in such filings by contacting other relevant Federal 
agencies, for comments and other information related to the identified 
individuals.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    General routine uses A, B, C, D, G, I, and J apply to all other 
categories of information in the system. These general routine uses are 
located at https://www.federalreserve.gov/files/SORN-page-general-routine-uses-of-board-systems-of-records.pdf and are published in the 
Federal Register at 83 FR 43872 at 43873-74 (August 28, 2018). These 
records may also be used:
    1. to disclose certain information to other Federal agencies to 
enable completion of the name check process related to a particular 
filing; and
    2. to disclose certain information to other bank regulatory 
agencies pursuant to explicit information sharing agreements.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Record are stored in electronic form. Some historical records are 
still stored in paper form.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Records are generally retrieved by an identification code 
internally assigned to each related filing or by the name of the 
financial institution involved in the related filing. However, records 
also can be retrieved by the name of the individual.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    All records are retained for 15 years and destroyed when no longer 
needed for administrative or reference purposes.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Electronic files are stored on secure servers and historical paper 
records are stored in locked file cabinets. Access is restricted to 
authorized employees and contractors within the Board or Federal 
Reserve System who require access for official business purposes. Users 
are classified into different roles and common access and usage rights 
are established for each role. User roles are used to delineate between 
the different types of access requirements such that users are 
restricted to data that is required in the performance of their duties. 
The electronic storage systems have the ability to track individual 
actions within the applications. Periodic audits and reviews are 
conducted to determine whether authenticated users still require access 
and whether there have been any unauthorized changes in any information 
maintained. The audit and accountability controls, which are based on 
NIST and Board standards, assist in detecting security violations or 
other issues within the electronic system.

RECORD ACCESS PROCEDURES:
    The Privacy Act allows individuals the right to access records 
maintained about them in a Board system of records. Your request for 
access must: (1) contain a statement that the request is made pursuant 
to the Privacy Act of 1974; (2) provide either the name of the Board 
system of records expected to contain the record requested or a concise 
description of the system of records; (3) provide the information 
necessary to verify your identity; and (4) provide any other 
information that may assist in the rapid identification of the record 
you seek.
    The Board handles all Privacy Act requests as both a Privacy Act 
request and as a Freedom of Information Act request. The Board does not 
charge fees to a requestor seeking to access or amend his/her Privacy 
Act records.
    You may submit your Privacy Act request to the--Secretary of the 
Board, Board of Governors of the Federal Reserve System, 20th Street 
and Constitution Avenue NW, Washington, DC 20551.
    You may also submit your Privacy Act request electronically by 
filling out the required information at: https://foia.federalreserve.gov/.

CONTESTING RECORD PROCEDURES:
    The Privacy Act allows individuals to seek amendment of information 
that is erroneous, irrelevant, untimely, or incomplete and is 
maintained in a system of records that pertains to them. To request an 
amendment to your record, you should clearly mark the request as a 
``Privacy Act Amendment Request.'' You have the burden of proof for 
demonstrating the appropriateness of the requested amendment and you 
must

[[Page 34268]]

provide relevant and convincing evidence in support of your request.
    Your request for amendment must: (1) provide the name of the 
specific Board system of records containing the record you seek to 
amend; (2) identify the specific portion of the record you seek to 
amend; (3) describe the nature of and reasons for each requested 
amendment; (4) explain why you believe the record is not accurate, 
relevant, timely, or complete; and (5) unless you have already done so 
in a Privacy Act request for access or amendment, provide the necessary 
information to verify your identity.

NOTIFICATION PROCEDURES:
    Same as ``Access procedures'' above. You may also follow this 
procedure in order to request an accounting of previous disclosures of 
records pertaining to you as provided for by 5 U.S.C. 552a(c).

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    Certain portions of this system of records may be exempt from 5 
U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G), (H), and (I), and (f) of the 
Privacy Act pursuant to 5 U.S.C. 552a(k)(2).

HISTORY:
    This SORN was previously published in the Federal Register at 73 FR 
24984 at 25011 (May 6, 2008). The SORN was also amended to incorporate 
two new routine uses required by OMB at 83 FR 43872 (August 28, 2018).

    Board of Governors of the Federal Reserve System.
Ann Misback,
Secretary of the Board.
[FR Doc. 2022-12032 Filed 6-3-22; 8:45 am]
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