Notice2022-04347
Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB
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
March 2, 2022
Issuing agencies
Federal Reserve System
Abstract
The Board of Governors of the Federal Reserve System (Board) is adopting a proposal to extend for three years, without revision, Reporting, Recordkeeping, and Disclosure Requirements Associated with Regulation NN.
Full Text
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<title>Federal Register, Volume 87 Issue 41 (Wednesday, March 2, 2022)</title>
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[Federal Register Volume 87, Number 41 (Wednesday, March 2, 2022)]
[Notices]
[Pages 11705-11706]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-04347]
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FEDERAL RESERVE SYSTEM
[FR NN; OMB No. 7100-0353]
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
is adopting a proposal to extend for three years, without revision,
Reporting, Recordkeeping, and Disclosure Requirements Associated with
Regulation NN.
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.
Office of Management and Budget (OMB) Desk Officer for the Federal
Reserve Board, Office of Information and Regulatory Affairs, Office of
Management and Budget, New Executive Office Building, Room 10235, 725
17th Street NW, Washington, DC 20503, or by fax to (202) 395-6974.
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. Board-approved collections of information are
incorporated into the official OMB inventory of currently approved
collections of information. The OMB inventory, as well as copies of the
PRA Submission, supporting statements, and approved collection of
information instrument(s) are available at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>. These documents are also available on the Federal
Reserve 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 Approval Under OMB Delegated Authority of the Extension for Three
Years, Without Revision, of 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)
[[Page 11706]]
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.
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\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.
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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 treatment. If confidential treatment is requested
by a banking institution, the Board will review the request to
determine if confidential treatment is appropriate.
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\3\ 5 U.S.C. 552(b)(4).
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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.
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\4\ 5 U.S.C. 552(b)(8).
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Current actions: On November 23, 2021, the Board published a notice
in the Federal Register (86 FR 66561) requesting public comment for 60
days on the extension, without revision, of the FR NN. The comment
period for this notice expired on January 24, 2022. The Board did not
receive any comments.
Board of Governors of the Federal Reserve System, February 24,
2022.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2022-04347 Filed 3-1-22; 8:45 am]
BILLING CODE 6210-01-P
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