Proposed Rule2024-16729
Regulatory Publication and Review Under the Economic Growth and Regulatory Paperwork Reduction Act of 1996
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
August 1, 2024
Issuing agencies
Treasury DepartmentComptroller of the CurrencyFederal Reserve SystemFederal Deposit Insurance Corporation
Abstract
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of 1996 (EGRPRA), the OCC, Board, and FDIC (collectively, the agencies) are reviewing agency regulations to identify outdated or otherwise unnecessary regulatory requirements on insured depository institutions and their holding companies.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.
Full Text
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<title>Federal Register, Volume 89 Issue 148 (Thursday, August 1, 2024)</title>
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[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 [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-16729]
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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the agencies) are reviewing agency regulations to identify outdated or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:
<bullet> Federal eRulemaking Portal--<a href="http://Regulations.gov">Regulations.gov</a>:
Go to <a href="https://regulations.gov/">https://regulations.gov/</a>. 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 <a href="http://Regulations.gov">Regulations.gov</a> site, please call
1-866-498-2945 (toll free) Monday-Friday, 9 a.m.-5 p.m. ET, or email
<a href="/cdn-cgi/l/email-protection#41332426342d2035282e2f3229242d312524322a012632206f262e37"><span class="__cf_email__" data-cfemail="bfcddad8cad3decbd6d0d1ccd7dad3cfdbdaccd4ffd8ccde91d8d0c9">[email protected]</span></a>.
<bullet> 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.
<bullet> 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 <a href="http://Regulations.gov">Regulations.gov</a> 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:
<bullet> Viewing Comments Electronically--<a href="http://Regulations.gov">Regulations.gov</a>:
Go to <a href="https://regulations.gov/">https://regulations.gov/</a>. 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 <a href="http://Regulations.gov">Regulations.gov</a> site, please call 1-
866-498-2945 (toll free) Monday-Friday, 9 a.m.-5 p.m. ET, or email
<a href="/cdn-cgi/l/email-protection#8bf9eeecfee7eaffe2e4e5f8e3eee7fbefeef8e0cbecf8eaa5ece4fd"><span class="__cf_email__" data-cfemail="ddafb8baa8b1bca9b4b2b3aeb5b8b1adb9b8aeb69dbaaebcf3bab2ab">[email protected]</span></a>.
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:
<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/generalinfo/foia/ProposedRegs.cfm">https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm</a>.
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Follow the instructions for submitting comments.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#f785929084d994989a9a92998384b79192939285969b85928492858192d9909881"><span class="__cf_email__" data-cfemail="d8aabdbfabf6bbb7b5b5bdb6acab98bebdbcbdaab9b4aabdabbdaaaebdf6bfb7ae">[email protected]</span></a>. Include the
docket 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.
Public Inspection: In general, all public comments will be made
available on the Board's website at <a href="http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm">www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm</a> 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:
<bullet> Agency Website: <a href="https://www.fdic.gov/resources/regulations/federal-register-publications/">https://www.fdic.gov/resources/regulations/federal-register-publications/</a>. Follow instructions for
submitting comments on the FDIC's website.
<bullet> Mail: James P. Sheesley, Assistant Executive Secretary,
Attention: Comments/Legal OES (EGRPRA), Federal Deposit Insurance
Corporation,
[[Page 62680]]
550 17th Street NW, Washington, DC 20429.
<bullet> 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.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#f3909c9e9e969d8780b3b5b7bab0dd949c85"><span class="__cf_email__" data-cfemail="b0d3dfddddd5dec4c3f0f6f4f9f39ed7dfc6">[email protected]</span></a>. Include ``EGRPRA'' in the
subject line of the message.
Public Inspection: Comments received, including any personal
information provided, may be posted without change to <a href="https://www.fdic.gov/resources/regulations/federal-register-publications/">https://www.fdic.gov/resources/regulations/federal-register-publications/</a>.
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
[[Page 62681]]
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, <a href="http://egrpra.ffiec.gov">http://egrpra.ffiec.gov</a>.
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.
<bullet> 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.
<bullet> 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.
<bullet> Cumulative effects.
[cir] Question 5: Looking at the regulations in a category as a
whole, are there any requirements that are
[[Page 62682]]
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?
<bullet> 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.
<bullet> 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.
<bullet> 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.
<bullet> 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.
<bullet> 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.
<bullet> 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
<bullet> 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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<bullet> 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
<bullet> 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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<bullet> 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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<bullet> 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
<bullet> 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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<bullet> 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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<bullet> 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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<bullet> 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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<bullet> 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.
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\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
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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...
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Directors, Officers, and Employees
--------------------------------------------------------------------------------------------------------------------------------------------------------
Interagency Regulations
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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].
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OCC Regulations
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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.
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[[Page 62685]]
FDIC Regulations
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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.
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Money Laundering
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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].
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\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
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</html>Indexed from Federal Register on August 1, 2024.
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.