Notice2022-17379
Privacy Act of 1974; System of Records
Primary source
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Published
August 12, 2022
Effective
September 12, 2022
Issuing agencies
Federal Reserve System
Abstract
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-37, "FRB--Electronic Applications." This system enables bank holding companies (BHCs), savings and loan holding companies (SLHCs), state member banks, and foreign banks with operations in the United States, or other companies, and persons to submit an application or notice to the Federal Reserve System for approval or non-objection, as appropriate, to conduct certain transactions or engage in certain activities.
Full Text
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<title>Federal Register, Volume 87 Issue 155 (Friday, August 12, 2022)</title>
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[Federal Register Volume 87, Number 155 (Friday, August 12, 2022)]
[Notices]
[Pages 49836-49838]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-17379]
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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-37, ``FRB--Electronic Applications.'' This system enables bank
holding companies (BHCs), savings and loan holding companies (SLHCs),
state member banks, and foreign banks with operations in the United
States, or other companies, and persons to submit an application or
notice to the Federal Reserve System for approval or non-objection, as
appropriate, to conduct certain transactions or engage in certain
activities.
DATES: Comments must be received on or before September 12, 2022. This
modified system of records will become effective September 12, 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. 552aI(4)
and (11).
ADDRESSES: You may submit comments, identified by BGFRS-37, ``FRB--
Electronic Applications'' 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#32405755411c515d5f5f575c4641725457565740535e405741574044571c555d44"><span class="__cf_email__" data-cfemail="87f5e2e0f4a9e4e8eaeae2e9f3f4c7e1e2e3e2f5e6ebf5e2f4e2f5f1e2a9e0e8f1">[email protected]</span></a>. Include SORN name
and 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 will be made available on 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 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, <a href="/cdn-cgi/l/email-protection#a6939e94c7cfd5ced0cfc288c488ced3d5c4c7c8c2e6c0d4c488c1c9d0"><span class="__cf_email__" data-cfemail="c7f2fff5a6aeb4afb1aea3e9a5e9afb2b4a5a6a9a387a1b5a5e9a0a8b1">[email protected]</span></a>; 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: The Board is modernizing the electronic
applications system and its filing process by permitting external
filers to file applications, notices, requests for determinations, and
other applications-related inquiries submitted by filers electronically
through a paperless application process. The Board is moving to a
cloud-based system (Fed EZ File) for use by the Board and the Federal
Reserve Banks, acting pursuant to authority delegated by the Board
(collectively, ``FRS''). FRS staff will use Fed EZ File to create,
review, store, and retrieve information, including information obtained
from individuals, financial institutions, and other business
organizations, or their authorized representatives (collectively,
``filers''), in connection with applications, notices, requests for
determinations, and other applications-related inquiries submitted by
filers to the FRS (collectively, ``filings''). These transactions and
activities include, for example, acquisitions by a BHC or SLHC, bank
mergers, non-bank acquisitions or new activities, BHC or SLHC
formations, financial holding company elections, branch establishments,
changes in bank control, community development and public welfare
investments, and the appointment of directors or senior executive
officers by a BHC, SLHC, or bank. This system will also enable FRS
staff to request additional information, view business and supervisory
information from various entities as needed, act on the filing, and
deliver official and related correspondence. FRS staff will also
manually input paper-based filings received by the FRS into the EZ File
system for the above purposes.
Accordingly, the Board is revising the SORN in order to incorporate
the move to a new cloud-based system and generally update the SORN
since its last revision. In particular, the Board is making changes to
the purpose, authority, category of individuals, category of records,
and the routine uses sections. The Board has clarified the intended
purpose of the system and expanded the category of individuals to also
include public commenters on filings more accurately. The Board has
provided greater specificity to the category of records section by
identifying in greater detail some of the information types included in
typical filings.
The Board is also amending the system-specific routine use to
permit the sharing of the information covered by this system of records
with other financial institution 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
(Dodd-Frank Act, Pub. L. 111-203, 124 Stat. 1376 (2010)) dissolved the
Office of Thrift Supervision and replacing ``bank'' with ``financial
institution.'' Thus, the Board proposes to revise the system-specific
routine use to read: ``to disclose certain information to other
financial institution regulatory agencies pursuant to explicit
information sharing agreements.''
In the authority section, the Board is revising the list of
authorities to include additional statutes and regulations that
authorize the Board to receive filings from external parties and to
reflect statutory changes since the SORN's last issuance in 2008. In
particular, the Dodd-Frank Act was passed in 2010 and made substantial
changes to banking laws and regulations, which affected the authorities
for this system of records. For example, section 311 of Dodd-Frank
transferred authority to supervise and regulate SLHCs from the Office
of Thrift Supervision to the Board. Accordingly, the Board is adding
the Home Owners' Loan Act, as well as the Board's implementing
Regulations LL and MM, which authorize the Board to receive filings
from SLHCs as authorities. Similarly, the Board is adding to the
authorities section 167 of the Dodd-Frank Act and the Board's
implementing Regulation YY, which required certain foreign banking
organizations to create a U.S.
[[Page 49837]]
intermediate holding company for which foreign banking organizations
may request relief pursuant to section 252.153(c) of Regulation YY.
Lastly, the Board is also adding section 163(b) of the Dodd-Frank Act,
which required certain large BHCs and nonbank financial companies
supervised by the Board to provide written notice before making certain
acquisitions of large nonbanking entities.
The Board is also revising the list of legal authorities to include
those which were inadvertently omitted from or incorrectly cited in the
previous SORN. This includes adding corrected references to the U.S.
Code provisions corresponding to sections 9, 19, and 25 of the Federal
Reserve Act, concerning state banks as members of the Federal Reserve
System; bank reserves; and foreign branches of domestic banks,
respectively. In addition, the Board is revising the legal authority
section to include other statutory provisions under which the Board
receives filings, including sections 23A and 23B of the Federal Reserve
Act and the Board's implementing Regulation W, concerning depository
institutions' relations and transactions with affiliates, and section
24A, concerning investments in bank premises. Further, the Board is
revising the legal authorities to include sections 8, 18(c), 19, 32,
and 44 of the Federal Deposit Insurance Act, concerning termination of
insured depository institution status; bank merger transactions;
participation in banking by individuals convicted of, or who have
entered into a pretrial diversion or similar program for, certain
crimes; changes in directors and senior executive officers of insured
depository institution holding companies; and interstate bank mergers,
respectively. The Board has also added references to other relevant
authorizing banking statutes, such as the Foreign Bank Supervision
Enhancement Act and the Depository Institution Management Interlocks
Act.
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 storage, retrieval, and retention of
records.
The Board is also making technical changes to BGFRS-37 consistent
with the template laid out in OMB Circular No. A-108. Accordingly, the
Board has made technical corrections and non-substantive language
revisions to the following sections: ``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 has also created the following
new sections: ``Security Classification'' and ``History.''
SYSTEM NAME AND NUMBER:
BGFRS-37, ``FRB--Electronic Applications.''
SECURITY CLASSIFICATION:
Unclassified.
SYSTEM LOCATION:
Board of Governors of the Federal Reserve System, 20th Street and
Constitution Avenue NW Washington, DC 20551. Some data will be hosted
by third-party vendors, in government clouds managed by BOX in Nevada
and California, Appian in Ohio, and OneSpan in Virginia and Ohio.
SYSTEM MANAGER(S):
Vaishali Sack, Designated Agency Applications Official, Supervision
and Regulation Division, Board of Governors of the Federal Reserve
System, 20th Street and Constitution Avenue NW, Washington, DC 20551,
202-452-5221, <a href="/cdn-cgi/l/email-protection#73464b45464b45121a001b121f1a121f1a5d175d00121018331501115d141c05"><span class="__cf_email__" data-cfemail="f0c5c8c6c5c8c691998398919c99919c99de94de8391939bb0968292de979f86">[email protected]</span></a>.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
Sections 9, 19, 23A, 23B, 24A, 25, and 25A of the Federal Reserve
Act (12 U.S.C. 321-338a, 461-506, 371c, 371c-1, 371(d), 601-605, and
611-631); the Change in Bank Control Act (12 U.S.C. 1817(j)); Sections
8, 18(c), 19, 32, and 44 of the Federal Deposit Insurance Act (12
U.S.C. 1818, 1828(c), 1829, 1831i, and 1831(u)); the Bank Holding
Company Act of 1956 (12 U.S.C. 1841 et seq.); Section 5 of the Bank
Service Company Act (12 U.S.C. 1865); the International Banking Act of
1978, as amended (12 U.S.C. 3101 et seq.) and the Foreign Bank
Supervision Enhancement Act (12 U.S.C. 3101 note); the Depository
Institution Management Interlocks Act (12 U.S.C. 3201 et seq.); the
Home Owners' Loan Act (12 U.S.C. 1465-1468); Sections 163(b) and 167 of
the Dodd-Frank Wall Street Reform and Consumer Protection Act (12
U.S.C. 5363(b) and 5367); the Board's Regulation H (12 CFR part 208);
Regulation K (12 CFR part 211); Regulation L (12 CFR part 212);
Regulation W (12 CFR part 223); Regulation Y (12 CFR part 225);
Regulation LL (12 CFR part 238); Regulation MM (12 CFR part 239);
Regulation YY (12 CFR part 252); and Executive Order 9397.
PURPOSE(S) OF THE SYSTEM:
These records are collected and maintained to assist the Board and
the Federal Reserve Banks (collectively, ``FRS'') in evaluating whether
individuals, financial institutions, and other business organizations
meet the applicable statutory and regulatory factors that are required
to be considered in a particular filing.
CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
Persons who are parties to regulatory filings submitted to the FRS,
and public commenters to such submissions.
CATEGORIES OF RECORDS IN THE SYSTEM:
In connection with their role in filings, individuals provide
information, which may include, but is not limited to the following:
name (including former names and/or nicknames); contact information
such as telephone number, email address, etc.; address (home, business,
and/or mailing); citizenship information, including place and date of
birth; and/or citizenship status; government-issued identification,
such as driver's license number, Social Security number, passport
number and/or alien registration number, and/or taxpayer identification
number; occupation and employment history; financial and credit
information (including credit history); education and professional
credentials; information about compliance with applicable laws and
regulations, criminal history, and involvement with court proceedings;
and related organizations. In addition, submissions from members of the
public may contain unsolicited personally identifiable information
(``PII'') (such as bank account information or social security numbers)
even though such PII is not required for the individual to provide
comments or feedback.
RECORD SOURCE CATEGORIES:
The information is submitted by individual filers, certain
employees, officers, directors, or shareholders of financial
institutions or other business organizations, representatives of
individual or institutional filers, Federal and state banking
regulators, state insurance regulators, and members of the public. FRS
staff may also provide information to obtain access to the system. FRS
staff may also independently obtain information regarding filers from
publicly available sources.
[[Page 49838]]
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 this system.
These general routine uses are located at <a href="https://www.federalreserve.gov/files/SORN-page-general-routine-uses-of-board-systems-of-records.pdf">https://www.federalreserve.gov/files/SORN-page-general-routine-uses-of-board-systems-of-records.pdf</a> and are published in the Federal Register at 83
FR 43872 at 43873-74 (August 28, 2018). These records may also be used
to disclose certain information to other financial institution
regulatory agencies pursuant to explicit information sharing
agreements.
POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
Paper records are stored in locked file cabinets with access
limited to staff with a need to know until the paper records have been
scanned and stored electronically. Electronic records will be stored at
the Board and by third-party vendors in FedRAMP approved government
cloud storage solutions.
POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
Records can be searched for and retrieved by authorized staff only,
by every data field on a record, and by the contents of each record.
Access to records is limited to those persons whose official duties
require it.
POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
Records are retained for 60 days within the system and then
transferred to the Board's electronic recordkeeping system. Records are
retained in the Board's electronic recordkeeping system for 15 years,
then destroyed when no longer needed for reference.
ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
The system has the ability to track individual user actions within
the system. The audit and accountability controls are based on NIST and
Board standards, which are based on applicable laws and regulations.
The controls assist in detecting security violations and performance or
other issues in the system. Access to the system is restricted to
authorized users within the FRS 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 information that is required in the
performance of their duties. Periodic assessments and reviews are
conducted to determine whether users still require access, have the
appropriate role, and whether there have been any unauthorized changes.
Records are encrypted at rest and in transmission.
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: <a href="https://foia.federalreserve.gov/">https://foia.federalreserve.gov/</a>.
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 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 related 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. 5I(c).
EXEMPTIONS PROMULGATED FOR THE SYSTEM:
Certain portions of this system of records may be exempt from 5
U.S.C. 552a(c)(3),I),I)(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
54595 (September 22, 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 E. Misback,
Secretary of the Board.
[FR Doc. 2022-17379 Filed 8-11-22; 8:45 am]
BILLING CODE 6210-01-P
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