[Federal Register Volume 89, Number 148 (Thursday, August 1, 2024)]
[Proposed Rules]
[Pages 62679-62685]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-16729]



[[Page 62679]]

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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Chapter I

[Docket ID OCC-2023-0016]

FEDERAL RESERVE SYSTEM

12 CFR Chapter II

[Docket No. OP-1828]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Chapter III

RIN 3064-ZA39


Regulatory Publication and Review Under the Economic Growth and 
Regulatory Paperwork Reduction Act of 1996

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury; 
Board of Governors of the Federal Reserve System (Board); Federal 
Deposit Insurance Corporation (FDIC).

ACTION: Regulatory review; request for comments.

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SUMMARY: Pursuant to the Economic Growth and Regulatory Paperwork 
Reduction Act of 1996 (EGRPRA), the OCC, Board, and FDIC (collectively, 
the agencies) are reviewing agency regulations to identify outdated or 
otherwise unnecessary regulatory requirements on insured depository 
institutions and their holding companies. Over approximately two years, 
the agencies will publish four Federal Register documents requesting 
comment on multiple categories of regulations. This second Federal 
Register document requests comment on regulations in the categories of 
Consumer Protection; Directors, Officers, and Employees; and Money 
Laundering.

DATES: Written comments must be received no later than October 30, 
2024.

ADDRESSES: Comments should be directed to:
    OCC: Commenters are encouraged to submit comments through the 
Federal eRulemaking Portal. Please use the title ``Regulatory 
Publication and Review Under the Economic Growth and Regulatory 
Paperwork Reduction Act of 1996'' to facilitate the organization and 
distribution of the comments. You may submit comments by any of the 
following methods:
     Federal eRulemaking Portal--Regulations.gov:
    Go to https://regulations.gov/. Enter ``Docket ID OCC-2023-0016'' 
in the Search Box and click ``Search.'' Public comments can be 
submitted via the ``Comment'' box below the displayed document 
information or by clicking on the document title and then clicking the 
``Comment'' box on the top-left side of the screen. For help with 
submitting effective comments, please click on ``Commenter's 
Checklist.'' For assistance with the Regulations.gov site, please call 
1-866-498-2945 (toll free) Monday-Friday, 9 a.m.-5 p.m. ET, or email 
[email protected].
     Mail: Chief Counsel's Office, Attention: Comment 
Processing, Office of the Comptroller of the Currency, 400 7th Street 
SW, Suite 3E-218, Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
    Instructions: You must include ``OCC'' as the agency name and 
``Docket ID OCC-2023-0016'' in your comment. In general, the OCC will 
enter all comments received into the docket and publish the comments on 
the Regulations.gov website without change, including any business or 
personal information provided such as name and address information, 
email addresses, or phone numbers. Comments received, including 
attachments and other supporting materials, are part of the public 
record and subject to public disclosure. Do not include any information 
in your comment or supporting materials that you consider confidential 
or inappropriate for public disclosure.
    You may review comments and other related materials that pertain to 
this action by the following method:
     Viewing Comments Electronically--Regulations.gov:
    Go to https://regulations.gov/. Enter ``Docket ID OCC-2023-0016'' 
in the Search Box and click ``Search.'' Click on the ``Dockets'' tab 
and then the document's title. After clicking the document's title, 
click the ``Browse All Comments'' tab. Comments can be viewed and 
filtered by clicking on the ``Sort By'' drop-down on the right side of 
the screen or the ``Refine Comments Results'' options on the left side 
of the screen. Supporting materials can be viewed by clicking on the 
``Browse Documents'' tab. Click on the ``Sort By'' drop-down on the 
right side of the screen or the ``Refine Results'' options on the left 
side of the screen checking the ``Supporting & Related Material'' 
checkbox. For assistance with the Regulations.gov site, please call 1-
866-498-2945 (toll free) Monday-Friday, 9 a.m.-5 p.m. ET, or email 
[email protected].
    The docket may be viewed after the close of the comment period in 
the same manner as during the comment period.
    Board: You may submit comments, identified by Docket No. OP-1828 by 
any of the following methods:
     Agency Website: https://www.federalreserve.gov. Follow the 
instructions for submitting comments at https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include the 
docket 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.
    Public Inspection: In general, all public comments will be made 
available on the Board's website at www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted, and will not be modified to remove 
confidential, contact or any identifiable information. Public comments 
may also be viewed electronically or in paper in Room M-4365A, 2001 C 
Street NW, Washington, DC 20551, between 9 a.m. and 5 p.m. during 
Federal business weekdays. For security reasons, the Board requires 
that visitors make an appointment to inspect comments 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. For users of TTY-
TRS, please call 711 from any telephone, anywhere in the United States.
    FDIC: The FDIC encourages interested parties to submit written 
comments. Please include your name, affiliation, address, email 
address, and telephone number(s) in your comment. You may submit 
comments to the FDIC, identified by ``EGRPRA'' in the subject line of 
your message by any of the following methods:
     Agency Website: https://www.fdic.gov/resources/regulations/federal-register-publications/. Follow instructions for 
submitting comments on the FDIC's website.
     Mail: James P. Sheesley, Assistant Executive Secretary, 
Attention: Comments/Legal OES (EGRPRA), Federal Deposit Insurance 
Corporation,

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550 17th Street NW, Washington, DC 20429.
     Hand Delivery/Courier: Comments may be hand-delivered to 
the guard station at the rear of the 550 17th Street NW, building 
(located on F Street NW) on business days between 7 a.m. and 5 p.m. ET.
     Email: [email protected]. Include ``EGRPRA'' in the 
subject line of the message.
    Public Inspection: Comments received, including any personal 
information provided, may be posted without change to https://www.fdic.gov/resources/regulations/federal-register-publications/. 
Commenters should submit only information that the commenter wishes to 
make available publicly. The FDIC may review, redact, or refrain from 
posting all or any portion of any comment that it may deem to be 
inappropriate for publication, such as irrelevant or obscene material. 
The FDIC may post only a single representative example of identical or 
substantially identical comments, and in such cases will generally 
identify the number of identical or substantially identical comments 
represented by the posted example. All comments that have been 
redacted, as well as those that have not been posted, that contain 
comments on the merits of this document will be retained in the public 
comment file and will be considered as required under all applicable 
laws. All comments may be accessible under the Freedom of Information 
Act.

FOR FURTHER INFORMATION CONTACT: 
    OCC: Allison Hester-Haddad, Special Counsel, Daniel Amodeo, 
Counsel, or John Cooper, Counsel, Chief Counsel's Office (202) 649-
5490, Office of the Comptroller of the Currency, 400 7th Street SW, 
Washington, DC 20219. If you are deaf, hard of hearing, or have a 
speech disability, please dial 7-1-1 to access telecommunications relay 
services.
    Board: Katie Ballintine, Assistant Director, (202) 452-2555, Maria 
Jovanovic, Senior Financial Institution Policy Analyst II, (202) 475-
6327, and Colton Hamming, Financial Institution Policy Analyst II, 
(202) 452-3932, Division of Supervision and Regulation; Mandie Aubrey, 
Senior Counsel, (202) 452-2595, Division of Consumer and Community 
Affairs; Dafina Stewart, Deputy Associate General Counsel, (202) 452-
2677, David Cohen, Senior Attorney, (202) 452-5259, and Vivien Lee, 
Attorney, (202) 452-2029, Legal Division, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551. For users of TTY-TRS, please call 711 from any 
telephone, anywhere in the United States.
    FDIC: Karen J. Currie, Chief, Policy & Program Development Section, 
(202) 898-3981, Division of Risk Management Supervision; or William 
Piervincenzi, Supervisory Counsel, (202) 898-6957, Legal Division.

SUPPLEMENTARY INFORMATION:

I. Introduction

    Section 2222 of EGRPRA \1\ requires that not less frequently than 
once every 10 years, the Federal Financial Institutions Examination 
Council (FFIEC) \2\ and the agencies \3\ conduct a review of their 
regulations to identify outdated or otherwise unnecessary regulatory 
requirements imposed on insured depository institutions. In conducting 
this review, the FFIEC or the agencies will (a) categorize their 
regulations by type and (b) at regular intervals, provide notice and 
solicit public comment on categories of regulations, requesting 
commenters to identify areas of regulations that are outdated, 
unnecessary, or unduly burdensome.\4\
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    \1\ 12 U.S.C. 3311.
    \2\ The FFIEC is an interagency body empowered to prescribe 
uniform principles, standards, and report forms for the Federal 
examination of financial institutions and to make recommendations to 
promote uniformity in the supervision of financial institutions. The 
FFIEC does not issue regulations that impose burden on financial 
institutions and, therefore, we have not separately captioned the 
FFIEC in this document.
    \3\ The FFIEC is comprised of the OCC, Board, FDIC, National 
Credit Union Administration (NCUA), Consumer Financial Protection 
Bureau (CFPB), and State Liaison Committee. Of these, only the OCC, 
Board, and FDIC are statutorily required to undertake the EGRPRA 
review. The NCUA elected to participate in the first and second 
EGRPRA reviews, and the NCUA Board again has elected to participate 
in this review process.
    Consistent with its approach during the first and second EGRPRA 
reviews, NCUA will separately issue documents and requests for 
comment on its rules. The CFPB is required to review its significant 
rules and publish a report of its review no later than five years 
after they take effect. See 12 U.S.C. 5512(d). This process is 
separate from the EGRPRA process.
    \4\ Insured depository institutions are also subject to 
regulations that are not reviewed under the EGRPRA process because 
they were not prescribed by the agencies. Examples include rules for 
which rulemaking authority was transferred to the CFPB and anti-
money laundering regulations issued by the Department of the 
Treasury's Financial Crimes Enforcement Network, among others. If, 
during the EGRPRA process, the agencies receive a comment about a 
regulation that is not subject to the EGRPRA review, we will forward 
that comment to the appropriate agency.
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    EGRPRA also requires the FFIEC or the agencies to publish in the 
Federal Register a summary of the comments received, identifying 
significant issues raised and commenting on those issues. It also 
directs the agencies to eliminate unnecessary regulations, as 
appropriate. Finally, the statute requires the FFIEC to submit to 
Congress a report that summarizes any significant issues raised in the 
public comments and the relative merits of those issues. The report 
also must include an analysis of whether the agencies are able to 
address the regulatory burdens associated with such issues or whether 
those burdens must be addressed by legislative action.

II. The EGRPRA Review's Targeted Focus

    The EGRPRA regulatory review provides an opportunity for the public 
and the agencies to evaluate groups of related regulations and to 
identify opportunities for burden reduction.\5\ For example, the EGRPRA 
review may facilitate the identification of statutes and regulations 
that share similar goals or complementary methods where one or more 
agencies could eliminate the overlapping regulatory requirements. 
Alternatively, commenters may identify regulations or statutes that 
impose requirements that are no longer consistent with current business 
practices and may warrant revision or elimination.
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    \5\ See supra note 1.
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    The EGRPRA review also provides the agencies and the public with an 
opportunity to consider how to reduce the impact on community banks or 
their holding companies. The agencies are aware of the role that these 
institutions play in providing consumers and businesses across the 
nation with essential financial services and access to credit. The 
agencies are especially concerned about the impact of requirements on 
these smaller institutions. The agencies understand that when a new 
regulation is issued or a current regulation amended, smaller 
institutions may have to devote a significant amount of their resources 
to determine if and how the regulation will affect them. Through the 
public comment process, the EGRPRA review can help the agencies 
identify and target regulatory changes to reduce impacts on those 
smaller institutions.
    Burden reduction must be compatible with consumer protection and 
the safety and soundness of insured depository institutions, their 
affiliates, and the financial system as a whole. Burden reduction also 
must be consistent with the agencies' statutory mandates, many of which 
require the issuance of regulations. EGRPRA recognizes that effective 
burden reduction may require statutory changes. Accordingly, as part of 
this review, we specifically ask the public to comment on the 
relationship among burden reduction, regulatory

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requirements, policy objectives, and statutory mandates. We also seek 
quantitative data about the impact of rules.
    We note that the agencies must consider regulatory burden each time 
an agency proposes, adopts, or amends a rule. For example, under the 
Paperwork Reduction Act of 1995 \6\ and the Regulatory Flexibility 
Act,\7\ the agencies assess each rulemaking with respect to the burdens 
the rule might impose. The agencies also invite the public to comment 
on proposed rules as required by the Administrative Procedure Act.\8\
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    \6\ 44 U.S.C. 3501-3521.
    \7\ 5 U.S.C. 610.
    \8\ 5 U.S.C. 551-559.
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III. The EGRPRA Review Process

    Taken together for purposes of the EGRPRA review process, the 
agencies' regulations covering insured depository institutions 
encompass more than 100 subjects.\9\ Consistent with the EGRPRA statute 
and past practice, the agencies have grouped these regulations into the 
following 12 categories listed in alphabetical order: Applications and 
Reporting; Banking Operations; Capital; Community Reinvestment Act; 
Consumer Protection; \10\ Directors, Officers, and Employees; 
International Operations; Money Laundering; Powers and Activities; 
Rules of Procedure; Safety and Soundness; and Securities. These 
categories were used during the prior EGRPRA reviews. The agencies 
determined the categories by sorting the regulations by type and sought 
to have no category be too large or broad. These categories remain 
useful, and the agencies have not modified the categories for purposes 
of this review.
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    \9\ Consistent with EGRPRA's focus on reducing burden on insured 
depository institutions, the agencies have not included their 
internal, organizational, or operational regulations in this review. 
These regulations impose minimal, if any, burden on insured 
depository institutions.
    \10\ The agencies are seeking comment only on consumer 
protection regulations for which they retain rulemaking authority 
for insured depository institutions and holding companies under the 
Dodd-Frank Wall Street Reform and Consumer Protection Act, Public 
Law 111-203, 124 Stat. 1376 (2010) (Dodd-Frank Act).
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    To carry out the EGRPRA review, the agencies plan to publish four 
Federal Register documents with each addressing one or more categories 
of rules. Each Federal Register document will have a 90-day comment 
period. On February 6, 2024, the agencies published the first document 
addressing the following categories of regulations: Applications and 
Reporting; Powers and Activities; and International Operations.\11\ 
This second document addresses Consumer Protection; Directors, 
Officers, and Employees; and Money Laundering. The agencies invite the 
public to identify outdated, unnecessary, or unduly burdensome 
regulatory requirements imposed on insured depository institutions and 
their holding companies in these three categories.
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    \11\ 89 FR 8084 (Feb. 6, 2024).
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    To assist the public's understanding of how the agencies have 
organized the EGRPRA review, the agencies have prepared a chart that 
lists the categories of regulations for which we are requesting 
comments. The chart's left column divides the categories into specific 
subject-matter areas. The headings at the top of the chart identify the 
types of institutions affected by the regulations.
    The agencies will review the comments received and determine 
whether further action is appropriate with respect to the regulations. 
The agencies will consult and coordinate with each other and expect 
generally to make this determination jointly, as appropriate, in the 
case of rules that have been issued on an interagency basis. Similarly, 
as appropriate, the agencies will undertake any rulemaking to amend or 
repeal those rules on an interagency basis. For rules issued by a 
single agency, the issuing agency will review the comments received and 
independently determine whether amendments to or repeal of its rules 
are appropriate.
    Further, as part of the EGRPRA review, the agencies are holding a 
series of public outreach meetings to provide an opportunity for 
bankers, consumer and community groups, and other interested parties to 
present their views directly to senior management and staff of the 
agencies. More information about the outreach meetings can be found on 
the agencies' EGRPRA website, http://egrpra.ffiec.gov.

IV. Request for Comments on Regulations in the Consumer Protection; 
Directors, Officers, and Employees; and Money Laundering Categories

    The agencies are requesting comment on regulations in the Consumer 
Protection; Directors, Officers, and Employees; and Money Laundering 
categories to identify outdated, unnecessary, or unduly burdensome 
requirements imposed on insured depository institutions and their 
holding companies. The agencies recognize that there are proposed rules 
concerning some of these categories open as of the date of this 
document and will solicit comment on all rules finalized by the 
agencies before the publication of the last EGRPRA document in the 
series. In addition to comments on regulations in these categories 
generally, the agencies are requesting comments on certain specific 
regulations described below within these categories issued since the 
last EGRPRA review. Where possible, the agencies ask commenters to cite 
to specific regulatory language or provisions. The agencies also 
welcome suggested alternative provisions or language in support of a 
comment, where appropriate. The agencies will consider comments 
submitted anonymously.

Specific Issues for Commenters To Consider

    The agencies specifically invite comment on the following issues as 
they pertain to the agencies' Consumer Protection; Directors, Officers, 
and Employees; and Money Laundering rules addressed in this document. 
The agencies have included two additional questions in the cumulative 
effects category since the issuance of the first EGRPRA Federal 
Register document. We will ask these same questions for each subsequent 
document we issue in connection with the EGRPRA process and invite 
comments on these additional questions for the categories in the first 
document.
     Need and purpose of the regulations.
    [cir] Question 1: Have there been changes in the financial services 
industry, consumer behavior, or other circumstances that cause any 
regulations in these categories to be outdated, unnecessary, or unduly 
burdensome? If so, please identify the regulations, provide any 
available quantitative analyses or data, and indicate how the 
regulations should be amended.
    [cir] Question 2: Do any of these regulations impose burdens not 
required by their underlying statutes? If so, please identify the 
regulations and indicate how they should be amended.
     Overarching approaches/flexibilities.
    [cir] Question 3: With respect to the regulations in these 
categories, could an agency use a different regulatory approach to 
lessen the burden imposed by the regulations and achieve statutory 
intent?
    [cir] Question 4: Do any of these rules impose unnecessarily 
inflexible requirements? If so, please identify the regulations and 
indicate how they should be amended.
     Cumulative effects.
    [cir] Question 5: Looking at the regulations in a category as a 
whole, are there any requirements that are

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redundant, inconsistent, or overlapping in such a way that taken 
together, impose an unnecessary burden that could potentially be 
addressed? If so, please identify those regulations, provide any 
available quantitative analyses or data, and indicate how the 
regulations should be amended.
    [cir] Question 6: Have the agencies issued similar regulations in 
the same area that should be considered together as bodies of 
regulation, when assessing the cumulative effects on an insured 
depository institution or holding company? If so, please identify the 
regulations, why they should be considered together, and any available 
analyses or data for the agencies' consideration.
    [cir] Question 7: Could any regulations or category of regulation 
be streamlined or simplified to reduce unduly burdensome or duplicative 
regulatory requirements?
     Effect on competition.
    [cir] Question 8: Do any of the regulations in these categories 
create competitive disadvantages for one part of the financial services 
industry compared to another or for one type of insured depository 
institution compared to another? If so, please identify the regulations 
and indicate how they should be amended.
     Reporting, recordkeeping, and disclosure requirements.
    [cir] Question 9: Do any of the regulations in these categories 
impose outdated, unnecessary, or unduly burdensome reporting, 
recordkeeping, or disclosure requirements on insured depository 
institutions or their holding companies?
    [cir] Question 10: Could an insured depository institution or its 
holding company fulfill any of these requirements through new 
technologies (if they are not already permitted to do so) and 
experience a burden reduction? If so, please identify the regulations 
and indicate how they should be amended.
     Unique characteristics of a type of institution.
    [cir] Question 11: Do any of the regulations in these categories 
impose requirements that are unwarranted by the unique characteristics 
of a particular type of insured depository institution or holding 
company? If so, please identify the regulations and indicate how they 
should be amended.
     Clarity.
    [cir] Question 12: Are the regulations in these categories clear 
and easy to understand?
    [cir] Question 13: Are there specific regulations for which 
clarification is needed? If so, please identify the regulations and 
indicate how they should be amended.
     Impact to community banks and other small, insured 
depository institutions.
    [cir] Question 14: Are there regulations in these categories that 
impose outdated, unnecessary, or unduly burdensome requirements on a 
substantial number of community banks, their holding companies, or 
other small, insured depository institutions or holding companies?
    [cir] Question 15: Have the agencies issued regulations pursuant to 
a common statute that, as applied by the agencies, create redundancies 
or impose inconsistent requirements?
    [cir] Question 16: Should any of these regulations issued pursuant 
to a common statute be amended or repealed to minimize this impact? If 
so, please identify the regulations and indicate how they should be 
amended.
    [cir] Question 17: Have the effects of any regulations in these 
categories changed over time that now have a significant economic 
impact on a substantial number of small, insured depository 
institutions or holding companies? If so, please identify the 
regulations and indicate how they should be amended. The agencies seek 
information on (1) the continued need for the rule; (2) the complexity 
of the rule; (3) the extent to which the rule overlaps, duplicates or 
conflicts with other Federal rules, and, to the extent feasible, with 
State and local governmental rules; and (4) the degree to which 
technology, economic conditions, or other factors have changed in the 
area affected by the rule.
     Scope of rules.
    [cir] Question 18: Is the scope of each rule in these categories 
consistent with the intent of the underlying statute(s)?
    [cir] Questions 19: Could the agencies amend the scope of a rule to 
clarify its applicability or reduce the burden, while remaining 
faithful to statutory intent? If so, please identify the regulations 
and indicate how they should be amended.

Specific Interagency Regulations Issued Since the Last EGRPRA Review

     Loans in Areas Having Special Flood Hazards: The OCC, 
Board, FDIC, Farm Credit Administration, and NCUA amended their 
regulations regarding loans in areas having special flood hazards to 
implement the private flood insurance provisions of the Biggert-Waters 
Flood Insurance Reform Act of 2012 (Biggert-Waters Act).\12\ 
Specifically, the final rule requires regulated lending institutions to 
accept flood insurance policies that meet the statutory definition of 
``private flood insurance'' in the Biggert-Waters Act and permits 
regulated lending institutions to exercise their discretion to accept 
flood insurance policies issued by private insurers and plans providing 
flood coverage issued by mutual aid societies that do not meet the 
statutory definition of ``private flood insurance,'' subject to certain 
restrictions.
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    \12\ 84 FR 4953 (Feb. 20, 2019).
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     Thresholds Increase for the Major Assets Prohibition of 
the Depository Institution Management Interlocks Act Rules: The OCC, 
Board, and FDIC amended their regulations to increase the thresholds in 
the major assets prohibition for management interlocks for purposes of 
the Depository Institution Management Interlocks Act (DIMIA). The DIMIA 
major assets prohibition prohibits a management official of a 
depository organization with assets above a certain asset threshold (or 
any affiliate of such an organization) from serving at the same time as 
a management official of an unaffiliated depository organization with 
assets above a certain asset threshold (or any affiliate of such an 
organization). The final rule increased both major assets prohibition 
thresholds to $10 billion to account for changes in the United States 
banking market since the current thresholds were established in 
1996.\13\
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    \13\ 84 FR 54465 (Oct. 10, 2019).
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Specific OCC Regulations Issued Since the Last EGRPRA Review

     Integration of National Bank and Savings Association 
Regulations: The OCC integrated certain rules originally issued by the 
OCC with respect to national banks and by the former Office of Thrift 
Supervision (OTS) with respect to savings associations.\14\ The OCC 
integrated rules relating to consumer protection in insurance sales, 
management interlocks, appraisals, and the Fair Credit Reporting Act 
(FCRA). This rulemaking also made technical amendments to the OCC's 
FCRA rule to conform to provisions of the Dodd-Frank Act.
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    \14\ 79 FR 28393 (May 16, 2014).
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     Charging Interest by National Banks at Rates Permitted 
Competing Institutions; Charging Interest to Corporate Borrowers: The 
OCC issued a rule to clarify and reaffirm that a bank may transfer a 
loan without affecting the permissible interest term.\15\
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    \15\ 85 FR 33530 (Jun. 2, 2020).
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     Suspicious Activity Reports (SARs). In March 2022, the OCC 
issued a rule to allow the OCC to issue exemptions from the 
requirements of the OCC's SAR

[[Page 62683]]

regulations based on a request from an institution, subject to certain 
criteria.\16\
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    \16\ 87 FR 15323 (Mar. 18, 2022).
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Specific FDIC Regulations Issued Since the Last EGRPRA Review

     FDIC Official Signs and Advertising Requirements, False 
Advertising, Misrepresentation of Insured Status, and Misuse of the 
FDIC's Name or Logo: The FDIC amended its regulations governing use of 
the official FDIC sign and insured depository institutions' advertising 
statements to reflect how depositors conduct business with insured 
depository institutions today, including through digital and mobile 
channels.\17\ The final rule also clarified the FDIC's regulations 
regarding misrepresentations of deposit insurance coverage by 
addressing specific scenarios where consumers may be misled as to 
whether they are conducting business with an insured depository 
institution and whether their funds are protected by Federal deposit 
insurance.
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    \17\ 89 FR 3504 (Jan. 18, 2024).
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     False Advertising, Misrepresentation of Insured Status, 
and Misuse of the FDIC's Name or Logo: The FDIC adopted a final rule to 
implement section 18(a)(4) of the Federal Deposit Insurance Act (FDI 
Act).\18\ The final rule established the process by which the FDIC will 
identify and investigate conduct that may violate section 18(a)(4) of 
the FDI Act, the standards under which such conduct will be evaluated, 
and the procedures that the FDIC will follow when formally and 
informally enforcing the provisions of section 18(a)(4) of the FDI Act.
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    \18\ 87 FR 33415 (Jun. 2, 2022).
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     Simplification of Deposit Insurance Rules: The FDIC 
amended its regulations governing deposit insurance coverage.\19\ The 
amendments simplified the deposit insurance regulations by establishing 
a ``trust accounts'' category that governs coverage of deposits of both 
revocable trusts and irrevocable trusts using a common calculation, and 
the amendments provided consistent deposit insurance treatment for all 
mortgage servicing account balances held to satisfy principal and 
interest obligations to a lender.
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    \19\ 87 FR 4455 (Jan. 28, 2022).
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     Joint Ownership Deposit Accounts: The FDIC amended its 
deposit insurance regulations to update one of the requirements that 
must be satisfied for an account to be separately insured as a joint 
account.\20\ Specifically, the final rule provides an alternative 
method to satisfy the signature card requirement. Under the final rule, 
the signature card requirement may be satisfied by information 
contained in the deposit account records of the insured depository 
institution establishing co-ownership of the deposit account, such as 
evidence that the institution has issued a mechanism for accessing the 
account to each co-owner or evidence of usage of the deposit account by 
each co-owner.
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    \20\ 84 FR 35022 (Jul. 22, 2019).
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     Federal Interest Rate Authority: FDIC issued regulations 
clarifying the law that governs the interest rates State-chartered 
banks and insured branches of foreign banks (collectively, State banks) 
may charge.\21\ These regulations provided that State banks are 
authorized to charge interest at the rate permitted by the State in 
which the State bank is located, or one percent in excess of the 90-day 
commercial paper rate, whichever is greater. The regulations also 
provided that whether interest on a loan is permissible under section 
27 of the Federal Deposit Insurance Act is determined at the time the 
loan is made, and interest on a loan permissible under section 27 is 
not affected by a change in State law, a change in the relevant 
commercial paper rate, or the sale, assignment, or other transfer of 
the loan.
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    \21\ 85 FR 44146 (Jul. 22, 2020).
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V. The Agencies' Review of Regulations Under Section 610 of the 
Regulatory Flexibility Act (RFA)

    Consistent with past practice, the agencies will use the EGRPRA 
review to satisfy their respective obligations under section 610 of the 
RFA.\22\ To that end, for each rule that has a significant impact on a 
substantial number of small entities issued in the last 10 years, the 
agencies invite comment on (1) the continued need for the rule; (2) the 
complexity of the rule; (3) the extent to which the rule overlaps, 
duplicates or conflicts with other Federal rules, and, to the extent 
feasible, with State and local governmental rules; and (4) the length 
of time since the rule has been evaluated or the degree to which 
technology, economic conditions, or other factors have changed in the 
area affected by the rule. The purpose of the review will be to 
determine whether such rules should be continued without change, 
amended, or rescinded, consistent with the stated objectives of 
applicable statutes, to minimize any significant economic impact of the 
rules upon a substantial number of such small entities.
---------------------------------------------------------------------------

    \22\ Section 610 of the Regulatory Flexibility Act, 5 U.S.C. 
610, imposes a continuing obligation on the agencies to review 
regulations that may have a significant economic impact upon a 
substantial number of small entities within 10 years after a final 
rule is published. A subset of the rules the agencies will review 
under EGRPRA will also be reviewed under the section 610 review 
criteria. The agencies will indicate which rules are subject to 
section 610 review. The factors the agencies consider in evaluating 
a rule under 5 U.S.C. 610 are (1) the continued need for the rule; 
(2) the nature of complaints or comments received concerning the 
rule from the public; (3) the complexity of the rule; (4) the extent 
to which the rule overlaps, duplicates, or conflicts with other 
Federal rules, and, to the extent feasible, with State and local 
governmental rules; and (5) the length of time since the rule has 
been evaluated or the degree to which technology, economic 
conditions, or other factors have changed in the area affected by 
the rule.
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    The agencies have not identified any rules pertaining to Consumer 
Protection; Directors, Officers, and Employees; and Money Laundering 
that would have a significant impact on a substantial number of small 
entities. The agencies will consider public comments submitted through 
the EGRPRA review process and agency experience to identify regulations 
where the agencies can reduce burdens that have a significant impact on 
a substantial number of small insured depository institutions.\23\
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    \23\ The review will be consistent with the requirements of a 
Regulatory Flexibility Act, section 610 review. The agencies will 
determine whether particular rules should be continued without 
change, amended, or rescinded, consistent with the objectives of 
applicable statutes, to minimize any significant economic impact of 
the rules on a substantial number of small insured depository 
institutions.

[[Page 62684]]



                                       Categories and Regulations Addressed in the Second Federal Register Notice
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           State non-member     Federal savings      State savings    BHCs & FHCs -------
             Subject                National banks    State member banks         banks           associations        associations          --- SLHCs
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Consumer Protection \1\--
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Interagency Regulations
--------------------------------------------------------------------------------------------------------------------------------------------------------
Consumer Protection in Sales of   12 CFR part 14....  12 CFR part 208,    12 CFR part 343...  12 CFR part 14....  12 CFR part 343...
 Insurance.                                            subpart H [Reg.
                                                       H].
Fair Housing....................  12 CFR part 27....  ..................  12 CFR part 338...  12 CFR part 128     12 CFR part 338...
                                                                                               (including other
                                                                                               nondiscrimination
                                                                                               requirements).
Loans in Identified Flood Hazard  12 CFR part 22....  12 CFR 208.25       12 CFR part 339...  12 CFR part 22....  12 CFR part 339...
 Areas.                                                [Reg. H].
Prohibition Against Use of        12 CFR part 25,     12 CFR part 208.7   12 CFR part 369...
 Interstate Branches Primarily     subpart E.          [Reg. H].
 for Deposit Production.
Information Security Standards..  12 CFR part 30,     12 CFR part 208,    12 CFR part 364,    12 CFR part 30,     12 CFR part 364,    12 CFR part 225,
                                   Appx. B.            Appx. D-2 [Reg.     Appx. B.            Appx. B.            Appx. B.            Appx. F [Reg. Y].
                                                       H].                                                                            ----------
                                                                                                                                      ..................
Fair Credit Reporting Act Duties  12 CFR part 41,     12 CFR part 222,    12 CFR part 334,    12 CFR part 41,     12 CFR part 334,
 of Users of Consumer Reports      subpart I.          subpart I [Reg V].  subpart I.          subpart I.          subpart I.
 Regarding Address Discrepancies
 and Records Disposal.
Fair Credit Reporting Act         12 CFR part 41,     12 CFR part 222     12 CFR part 334,    12 CFR part 41,     12 CFR part 334,
 Consumer Information Identity     subpart J.          subpart J [Reg V].  subpart J.          subpart J.          subpart J.
 Theft Red Flags.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     OCC Regulations
--------------------------------------------------------------------------------------------------------------------------------------------------------
Federal Savings Association       ..................  ..................  ..................  12 CFR 163.27.....
 Advertising.
Federal Savings Association       ..................  ..................  ..................  12 CFR 163.36.....
 Tying Restriction Exception.
Residential Mortgage Lending      12 CFR part 30,     ..................  ..................  12 CFR part 30,
 Practices.                        appx. C.                                                    appx. C.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    FDIC Regulations
--------------------------------------------------------------------------------------------------------------------------------------------------------
Advertisement of Membership.....  12 CFR part 328...  12 CFR part 328...  12 CFR part 328...  12 CFR part 328...  12 CFR part 328...
Deposit Insurance Coverage......  12 CFR part 330...  12 CFR part 330...  12 CFR part 330...  12 CFR part 330...  12 CFR part 330...
Certification of Assumption of    12 CFR part 307...  12 CFR part 307...  12 CFR part 307...  12 CFR part 307...  12 CFR part 307...
 Deposits and Notification of
 Changes of Insured Status.
Federal Interest Rate Authority.  ..................  12 CFR part 331...  12 CFR part 331...
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Directors, Officers, and Employees
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Interagency Regulations
--------------------------------------------------------------------------------------------------------------------------------------------------------
Limits on Extensions of Credit    12 CFR part 31....  12 CFR part 215     12 CFR 337.3......  12 CFR part 31....  12 CFR 337.3......
 to Executive Officers,                                [Reg. O].
 Directors and Principal
 Shareholders; Related
 Disclosure Requirements.
Management Official Interlocks..  12 CFR part 26....  12 CFR part 212     12 CFR part 348...  12 CFR part 26....  12 CFR part 348...  12 CFR part 212
                                                       [Reg. L].                                                                       [Reg. L].
                                                                                                                                      ----------
                                                                                                                                      12 CFR part 238,
                                                                                                                                       subpart J [Reg
                                                                                                                                       LL].
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     OCC Regulations
--------------------------------------------------------------------------------------------------------------------------------------------------------
National Bank Activities and      12 CFR part 7,
 Operations.                       subparts B and C.
Federal Savings Association       ..................  ..................  ..................  12 CFR part 163...
 Operations.
Federal Savings Association       ..................  ..................  ..................  12 CFR part 31; 12
 Restrictions on Transactions                                                                  CFR 160.130.
 with Officers, Directors, and
 Others.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 62685]]

 
                                                                    FDIC Regulations
--------------------------------------------------------------------------------------------------------------------------------------------------------
Golden Parachute and              12 CFR part 359...  12 CFR part 359...  12 CFR part 359...  12 CFR part 359...  12 CFR part 359...  12 CFR part 359.
 Indemnification Payments.                                                                                                            ----------
                                                                                                                                      12 CFR part 359.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    Money Laundering
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Interagency Regulations
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bank Secrecy Act Compliance.....  12 CFR part 21,     12 CFR 208.63       12 CFR part 326,    12 CFR part 21,     12 CFR part 326,
                                   subpart C.          [Reg. H].           subpart B.          subpart C.          subpart B.
Reports of Crimes or Suspected    12 CFR part 21,     12 CFR 208.62 and   12 CFR part 353...  12 CFR 163.180(d).  12 CFR part 353...  12 CFR 225.4(f)
 Crimes.                           subpart B.          208.63 [Reg. H].                                                                [Reg. Y].
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Regulations for which rulemaking authority has transferred to the CFPB are not included in this Consumer Protection category. As described in the
  SUPPLEMENTARY INFORMATION section of this document, the CFPB is required to review its significant rules and publish a report of its review no later
  than five years after they take effect in a process separate from the EGRPRA process.


Michael J. Hsu,
Acting Comptroller of the Currency.

    By order of the Board of Governors of the Federal Reserve 
System.
Ann E. Misback,
Secretary of the Board.

Federal Deposit Insurance Corporation.

    By order of the Board of Directors.

    Dated at Washington, DC, on June 20, 2024.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2024-16729 Filed 7-31-24; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P