Notice2021-25503
Proposed Agency Information Collection Activities; Comment Request
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 23, 2021
Issuing agencies
Federal Reserve System
Abstract
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).
Full Text
<html>
<head>
<title>Federal Register, Volume 86 Issue 223 (Tuesday, November 23, 2021)</title>
</head>
<body><pre>
[Federal Register Volume 86, Number 223 (Tuesday, November 23, 2021)]
[Notices]
[Pages 66561-66563]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25503]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice, request for comment.
-----------------------------------------------------------------------
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 January 24, 2022.
ADDRESSES: You may submit comments, identified by FR NN, by any of the
following methods:
<bullet> Agency Website: <a href="https://www.federalreserve.gov/">https://www.federalreserve.gov/</a>. Follow
the instructions for submitting comments at <a href="https://www.federalreserve.gov/apps/foia/proposedregs.aspx">https://www.federalreserve.gov/apps/foia/proposedregs.aspx</a>.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#20524547530e434f4d4d454e5453604645444552414c524553455256450e474f56"><span class="__cf_email__" data-cfemail="1c6e797b6f327f7371717972686f5c7a7978796e7d706e796f796e6a79327b736a">[email protected]</span></a>. Include the OMB
number or FR number in the subject line of the message.
<bullet> Fax: (202) 452-3819 or (202) 452-3102.
<bullet> 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 from the Board's website at
<a href="https://www.federalreserve.gov/apps/foia/proposedregs.aspx">https://www.federalreserve.gov/apps/foia/proposedregs.aspx</a> as
submitted, unless modified for technical reasons or to remove
personally identifiable information at the commenter's request.
Accordingly, comments will not be edited to remove any confidential
business information, identifying information, 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 for the Federal
Reserve Board, Office of Information and Regulatory
[[Page 66562]]
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: 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.
SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the
Board authority under the Paperwork Reduction Act (PRA) to approve and
assign OMB control numbers to collections of information 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.
During the comment period for this proposal, a copy of the proposed
PRA OMB submission, including the draft reporting form and
instructions, supporting statement, and other documentation, will be
made available on the Board's public website at <a href="https://www.federalreserve.gov/apps/reportforms/review.aspx">https://www.federalreserve.gov/apps/reportforms/review.aspx</a> or may be requested
from the agency clearance officer, whose name appears above. Final
versions of these documents will be made available at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>, if approved.
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: As needed.
Respondents: 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 that engage in retail foreign exchange transactions
(collectively, banking institutions).
Estimated number of respondents: Reporting, section 240.4: 1;
recordkeeping, sections 240.7, 240.9(b)(2), and 240.13(a): 2;
disclosure, sections 240.5(a), 240.6, 240.10, 240.13(c)-(d), 240.15,
and 240.16(a) and (b): 2.
Estimated average hours per response: Reporting, section 240.4: 16;
recordkeeping, sections 240.7, 240.9(b)(2), and 240.13(a): 183;
disclosure, sections 240.5(a), 240.6, 240.10, 240.13(c)-(d), 240.15,
and 240.16(a) and (b): 787.
Estimated annual burden hours: Reporting, section 240.4: 16;
recordkeeping, sections 240.7, 240.9(b)(2), and 240.13(a): 366;
disclosure, sections 240.5(a), 240.6, 240.10, 240.13(c)-(d), 240.15,
and 240.16(a) and (b): 1,574.
General description of report: Section 742(c)(2) of the Dodd-Frank
Wall Street Reform and Consumer Protection Act amended section 2(c)(2)
of the Commodity Exchange Act (CEA) to prohibit persons supervised by
certain Federal regulatory agencies, including the Board, from entering
into, or offering to enter into, certain types of foreign exchange
transactions, except pursuant to a rule or regulation promulgated by
the relevant supervising agency. The Board's Regulation NN (12 CFR part
240) authorizes banking institutions supervised by the Board to conduct
retail foreign exchange transactions and establishes certain reporting,
recordkeeping, and disclosure requirements for banking institutions
that choose to conduct such 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 CEA,\1\ which
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.\2\ Regulation NN's reporting,
recordkeeping, and disclosure requirements are mandatory for banking
institutions that engage in retail foreign exchange transactions.
---------------------------------------------------------------------------
\1\ 7 U.S.C. 2(c)(2)(E).
\2\ Additionally, the Board also has the authority to require
reports from state member banks under section 11 of the Federal
Reserve Act (FRA), 12 U.S.C. 248; from branches of foreign banks
under sections 9 and 13 of the International Banking Act of 1978, 12
U.S.C. 3106a and 3108; from bank holding companies under section
5(b) and (c) of the Bank Holding Company Act of 1956, 12 U.S.C.
1844(b) and (c); from savings and loan holding companies under
section 10 of the Home Owners' Loan Act, 12 U.S.C. 1467a(b) and (g);
from Edge Act corporations under section 25A(17) of the FRA, 12
U.S.C. 625; and from agreement corporations under section 25 of the
FRA, 12 U.S.C. 601-604a.
---------------------------------------------------------------------------
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. This information is likely to
constitute nonpublic commercial or financial information, which is both
customarily and actually treated as private by the respondent, and thus
may be kept confidential by the Board pursuant to exemption 4 of the
Freedom of Information Act (FOIA).\3\ 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
[[Page 66563]]
treatment. If confidential treatment is requested by a banking
institution, the Board will review the request to determine if
confidential treatment is appropriate.
---------------------------------------------------------------------------
\3\ 5 U.S.C. 552(b)(4).
---------------------------------------------------------------------------
The records and disclosures required by Regulation NN generally are
not submitted to the Federal Reserve. Accordingly, confidentiality
issues generally do not 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,\4\ which protects
information contained in or related to an examination of a financial
institution.
---------------------------------------------------------------------------
\4\ 5 U.S.C. 552(b)(8).
Board of Governors of the Federal Reserve System, November 17,
2021.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2021-25503 Filed 11-22-21; 8:45 am]
BILLING CODE 6210-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on November 23, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.