Federal Register / Vol. 76, No. 64 / Monday, April 4, 2011 / Rules and Regulations 18365 

under § 226.3(b) based on a firm commitment 

to extend credit. For example: 

i. Assume that, on July 20, 2011, the 

account is exempt under § 226.3(b) based on 

the creditor’s firm commitment to extend 

$30,000 in credit. On November 1, 2011, the 

creditor increases the firm commitment on 

the account to $55,000. In these 

circumstances, the account remains exempt 

under § 226.3(b)(1) regardless of subsequent 

increases in the threshold amount as a result 

of increases in the CPI–W. 

ii. Same facts as paragraph i. above except, 

on November 1, 2011, the creditor increases 

the firm commitment on the account to 

$40,000. In these circumstances, the account 

ceases to be exempt under § 226.3(b)(2) after 

December 31, 2011, and the creditor must 

begin to comply with the applicable 

requirements of this Part. 

* * * * * 

Section 226.23—Right of Rescission 

* * * * * 

23(a) Consumer’s right to rescind 

Paragraph 23(a)(1). 

* * * * * 

5. Addition of a security interest. Under 

footnote 47, the addition of a security interest 

in a consumer’s principal dwelling to an 

existing obligation is rescindable even if the 

existing obligation is not satisfied and 

replaced by a new obligation, and even if the 

existing obligation was previously exempt 

under § 226.3(b). The right of rescission 

applies only to the added security interest, 

however, and not to the original obligation. 

In those situations, only the § 226.23(b) 

notice need be delivered, not new material 

disclosures; the rescission period will begin 

to run from the delivery of the notice. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, March 24, 2011. 

Jennifer J. Johnson, 

Secretary of the Board. 

[FR Doc. 2011–7376 Filed 4–1–11; 8:45 am] 

BILLING CODE 6210–01–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Parts 717 and 748 

Fair Credit Reporting Act and Bank 

Secrecy Act Compliance 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Final rule; technical 

amendments. 

SUMMARY: NCUA is amending its Bank 

Secrecy Act (BSA) Compliance and Fair 

Credit Reporting Act (FCRA) regulations 

involving the Fair and Accurate Credit 

Transactions Act of 2003 (FACTA) to 

make minor, non-substantive technical 

amendments. These technical 

amendments update citations in these 

NCUA regulations to conform to the 

reorganization of the Financial Crimes 

Enforcement Network, Department of 

Treasury (FinCEN) BSA regulations. 

DATES: Effective Date: April 4, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Regina Metz, Staff Attorney, 703–518– 

6561, or Jennifer Vickers, Trial 

Attorney, 703–518–6547, National 

Credit Union Administration, 1775 

Duke Street, Alexandria, VA 22314. 

SUPPLEMENTARY INFORMATION: Effective 

March 1, 2011, FinCEN is reorganizing 

and moving its existing BSA regulations 

from 31 CFR part 103 to 31 CFR chapter 

X. See 75 FR 65806, October 26, 2010. 

NCUA is amending provisions of its 

FCRA FACTA regulations (12 CFR part 

717), including Appendix J to 12 CFR 

part 717, and BSA Compliance (12 CFR 

part 748) regulations to make minor, 

non-substantive technical amendments 

to conform the citations therein to 

FinCEN’s reorganized BSA regulations. 

Description of the Final Rule 

NCUA’s FCRA FACTA and BSA 

Compliance regulations currently cite to 

FinCEN’s BSA regulations in 31 CFR 

part 103. Due to FinCEN’s 

reorganization of its BSA regulations, 

these citations to 31 CFR part 103 in 

NCUA’s regulations would become 

obsolete on March 1, 2011. To avoid 

this, the final rule amends NCUA’s 

FCRA FACTA regulations (12 CFR 

717.82(c)(2)(i)(A)), including Appendix 

J to 12 CFR part 717, Section III(a), and 

BSA Compliance regulations (12 CFR 

748.1(c)(2)(ii) and (iii) and 748.2(a) and 

(b)(1) and (2)) to comport with FinCEN’s 

reorganized BSA regulations at 31 CFR 

chapter X. 

Administrative Procedure Act 

Under 5 U.S.C. 553(b)(B) of the 

Administrative Procedure Act (APA), an 

agency may, for good cause, find (and 

incorporate the finding and a brief 

statement of reasons therefore in the 

rules issued) that notice and public 

procedure thereon are impracticable, 

unnecessary, or contrary to the public 

interest. 

This final rule makes minor, nonsubstantive technical amendments to 

NCUA’s FCRA FACTA and BSA 

Compliance regulations as described 

above, to conform certain citations to 

FinCEN’s reorganized BSA regulations. 

Therefore, NCUA, for good cause, finds 

that the notice and comment procedures 

prescribed by the APA are unnecessary 

because the final rule makes technical 

amendments to citations without 

substantive change to the relevant 

provisions of 12 CFR parts 717 and 748. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking where a 

general notice of proposed rulemaking 

is not required. See 5 U.S.C. 603 and 

604. As noted above under 

Administrative Procedure Act, NCUA 

has determined, for good cause, that it 

is unnecessary to publish a notice of 

proposed rulemaking for this final rule. 

Accordingly, the RFA’s requirements 

relating to an initial and final regulatory 

flexibility analysis do not apply. 

Paperwork Reduction Act of 1995 

There are no information collection 

requirements in this final rule. 

List of Subjects 

12 CFR Part 717 

Consumer protection, Credit unions, 

Fair and accurate credit, Fair credit 

reporting, Privacy, Reporting and 

recordkeeping requirements. 

12 CFR Part 748 

Consumer protection, Credit unions, 

Crime, Currency, Reporting and 

recordkeeping requirements, Security 

measures. 

For the reasons discussed in the 

SUPPLEMENTARY INFORMATION section 

above, 12 CFR part 717 and 12 CFR part 

748 are amended as follows: 

PART 717—FAIR CREDIT REPORTING 

■ 1. The authority citation for part 717 

continues to read as follows: 

Authority: 12 U.S. C. 1751 et seq.; 15 

U.S.C. 1681a, 1681b, 1681c, 1681s, 1681s–1, 

1681t, 1681w, 6801, and 6805, Pub. L. 108– 

159, 117 Stat. 1952. 

■ 2. Amend § 717.82 by revising 

paragraph (c)(2)(i)(A) to read as follows: 

§ 717.82 Duties of users regarding address 

discrepancies. 

* * * * * 

(c) * * * 

(2) * * * 

(i) * * * 

(A) Obtains and uses to verify the 

consumer’s identity in accordance with 

the requirements of the Customer 

Identification Program (CIP) rules 

implementing 31 U.S.C. 5318(l) (31 CFR 

1020.220); 

* * * * * 

■ 3. In Appendix J to part 717, revise 

Section III, paragraph (a) to read as 

follows: 

Appendix J to Part 717—Interagency 

Guidelines on Identity Theft Detection, 

Prevention, and Mitigation 

III. Detecting Red Flags 

* * * * * 


sroberts on DSK69SOYB1PROD with RULES
18366 Federal Register / Vol. 76, No. 64 / Monday, April 4, 2011 / Rules and Regulations 

(a) Obtaining identifying information 

about, and verifying the identity of, a person 

opening a covered account; for example, 

using the policies and procedures regarding 

identification and verification set forth in the 

Customer Identification Program rules 

implementing 31 U.S.C. 5318(l) (31 CFR 

1020.220); and 

* * * * * 

PART 748—SECURITY PROGRAM, 

REPORT OF SUSPECTED CRIMES, 

SUSPICIOUS TRANSACTIONS, 

CATASTROPHIC ACTS, AND BANK 

SECRECY ACT COMPLIANCE 

■ 4. The authority citation for part 748 

continues to read as follows: 

Authority: 12 U.S.C. 1766(a), 1786(Q), 

15 U.S.C. 6801 and 6805(b); 31 U.S.C. 5311 

and 5318. 

■ 5. Amend § 748.1 by revising 

paragraphs (c)(2)(ii) and (iii) to read as 

follows: 

§ 748.1 Filing of reports. 

* * * * * 

(c) * * * 

(2) * * * 

(ii) Content. A credit union must 

complete, fully and accurately, SAR 

form TDF 90–22.47, Suspicious Activity 

Report (also known as NCUA Form 

2362) in accordance with the form’s 

instructions and 31 CFR 1020.320. A 

copy of the SAR form may be obtained 

from the credit union resources section 

of NCUA’s Web site, http:// 

www.ncua.gov, or the regulatory section 

of FinCEN’s Web site, http:// 

www.fincen.gov. These sites include 

other useful guidance on SARs, for 

example, forms and filing instructions, 

Frequently Asked Questions, and the 

FFIEC Bank Secrecy Act/Anti-Money 

Laundering Examination Manual. 

(iii) Compliance. Failure to file a SAR 

as required by the form’s instructions 

and 31 CFR 1020.320 may subject the 

credit union, its officials, employees, 

and agents to the assessment of civil 

money penalties or other administrative 

actions. 

* * * * * 

■ 6. Amend § 748.2 by revising 

paragraphs (a) and (b) to read as follows: 

§ 748.2 Procedures for monitoring Bank 

Secrecy Act (BSA) compliance. 

(a) Purpose. This section is issued to 

ensure that all federally insured credit 

unions establish and maintain 

procedures reasonably designed to 

assure and monitor compliance with the 

requirements of subchapter II of chapter 

53 of title 31, United States Code, the 

Financial Recordkeeping and Reporting 

of Currency and Foreign Transactions 

Act, and the implementing regulations 

promulgated under it by the Department 

of Treasury, 31 CFR chapter X. 

(b) Establishment of a BSA 

compliance program—(1) Program 

requirement. Each federally insured 

credit union shall develop and provide 

for the continued administration of a 

program reasonably designed to assure 

and monitor compliance with the 

recordkeeping and recording 

requirements in subchapter II of chapter 

53 of title 31, United States Code and 

implementing regulations issued by the 

Department of Treasury at 31 CFR 

chapter X. The compliance program 

must be written, approved by the credit 

union’s board of directors, and reflected 

in the credit union’s minutes. 

(2) Customer identification program. 

Each federally insured credit union is 

subject to the requirements of 31 U.S.C. 

5318(l) and the implementing regulation 

jointly promulgated by the NCUA and 

Department of the Treasury at 31 CFR 

1020.220, which require a customer 

identification program to be 

implemented as part of the BSA 

compliance program required under this 

section. 

* * * * * 

By the National Credit Union 

Administration Board, this 3rd day of March, 

2011. 

Mary F. Rupp, 

Secretary of the Board. 

[FR Doc. 2011–7911 Filed 4–1–11; 8:45 am] 

BILLING CODE 7535–01–P 

FEDERAL HOUSING FINANCE BOARD 

12 CFR Parts 965, 966, 969, and 987 

FEDERAL HOUSING FINANCE 

AGENCY 

12 CFR Part 1270 

RIN 2590–AA36 

Federal Home Loan Bank Liabilities 

AGENCY: Federal Housing Finance 

Board, Federal Housing Finance 

Agency. 

ACTION: Final rule. 

SUMMARY: The Federal Housing Finance 

Agency (FHFA) is re-organizing and readopting existing Federal Housing 

Finance Board (Finance Board) 

regulations dealing with consolidated 

obligations (COs), as well as related 

regulations addressing other authorized 

Federal Home Loan Bank (Bank) 

liabilities and book-entry procedures for 

COs, as new part 1270 of the FHFA 

regulations. The final rule amends these 

regulations to reflect statutory 

amendments made to section 11(c) of 

the Federal Home Bank Act (Bank Act) 

with regard to the issuance of COs. 

Otherwise, FHFA is re-adopting most of 

the regulatory provisions addressed in 

this rulemaking without substantive 

change. 

DATES: This rule will become effective 

on May 4, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Joseph A. McKenzie, Chief Economist, 

Federal Home Loan Bank and System 

Analysis, 202–408–2845, Federal 

Housing Finance Agency, 1625 Eye 

Street, NW., Washington, DC 20006; or 

Thomas E. Joseph, Senior AttorneyAdvisor, 202–414–3095, Office of 

General Counsel, Federal Housing 

Finance Agency, Fourth Floor, 1700 G 

Street, NW., Washington, DC 20552. The 

telephone number for the 

Telecommunications Device for the Deaf 

is (800) 877–8339. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. Creation of the Federal Housing 

Finance Agency and Recent Legislation 

Effective July 30, 2008, the Housing 

and Economic Recovery Act of 2008 

(HERA), Public Law 110–289, 122 Stat. 

2654, created FHFA as a new 

independent agency of the Federal 

Government, and transferred to FHFA 

the supervisory and oversight 

responsibilities of the Office of Federal 

Housing Enterprise Oversight (OFHEO) 

over the Federal National Mortgage 

Association, and the Federal Home Loan 

Mortgage Corporation (collectively, the 

Enterprises), the oversight 

responsibilities of the Finance Board 

over the Banks and the Office of Finance 

(OF) (which acts as the Banks’ fiscal 

agent) and certain functions of the 

Department of Housing and Urban 

Development. See id. at section 1101, 

122 Stat. 2661–62. FHFA is responsible 

for ensuring that the Enterprises and the 

Banks operate in a safe and sound 

manner, including that they maintain 

adequate capital and internal controls, 

that their activities foster liquid, 

efficient, competitive and resilient 

national housing finance markets, and 

that they carry out their public policy 

missions through authorized activities. 

See id. at section 1102, 122 Stat. 2663– 

64. The Enterprises, the Banks, and the 

OF continue to operate under 

regulations promulgated by OFHEO and 

the Finance Board until such 

regulations are superseded by 

regulations issued by FHFA. See id. at 

sections 1301, 1302, 1311, 1312, 122 

Stat. 2794–95, 2797–98. 


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