Federal Register / Vol. 89, No. 29 / Monday, February 12, 2024 / Notices 9909 

1 15 U.S.C. 78q–1(c). 

would be required to be registered 

except for the exemption from 

registration provided by section 

12(g)(2)(B) or section 12(g)(2)(G), to file 

with the appropriate regulatory agency 

(ARA) an application for registration in 

such form and containing such 

information and documents as such 

appropriate regulatory agency may 

prescribe as necessary or appropriate in 

furtherance of the purposes of this 

section.1 In general, an entity 

performing transfer agent functions for a 

qualifying security is required to register 

with its appropriate regulatory agency. 

The OCC’s regulations at 12 CFR 9.20 

implement these provisions of the Act. 

To accomplish the registration of 

transfer agents, Form TA–1 was 

developed in 1975 as an interagency 

effort by the Securities and Exchange 

Commission (SEC) and the Federal 

banking agencies (the OCC, the Board of 

Governors of the Federal Reserve 

System, and the Federal Deposit 

Insurance Corporation). The agencies 

primarily use the data collected on 

Form TA–1 to determine whether an 

application for registration should be 

approved, denied, accelerated, or 

postponed, and they use the data in 

connection with their supervisory 

responsibilities. In addition, when a 

national bank or Federal savings 

association no longer acts as a transfer 

agent for qualifying securities or when 

the national bank or Federal savings 

association is no longer supervised by 

the OCC, i.e., liquidates or converts to 

another form of financial institution, the 

national bank or Federal savings 

association must file Form TA–W with 

the OCC, requesting withdrawal from 

registration as a transfer agent. 

Forms TA–1 and TA–W are 

mandatory, and their collection is 

authorized by sections 17A(c), 17(a)(3), 

and 23(a)(1) of the Act, as amended (15 

U.S.C. 78q–1(c), 78q(a)(3), and 

78w(a)(1)). Additionally, section 

3(a)(34)(B)(i) of the Act (15 U.S.C. 

78c(a)(34)(B)(i)) provides that the OCC 

is the ARA in the case of a national 

banks and Federal savings associations 

and subsidiaries of such institutions. 

The registrations are public filings and 

are not considered confidential. The 

OCC needs the information contained in 

this collection to fulfill its statutory 

responsibilities. Section 17A(c)(2) of the 

Act (15 U.S.C. 78q–1(c)(2)), as amended, 

provides that all those authorized to 

transfer securities registered under 

section 12 of the Act (transfer agents) 

shall register by filing with the 

appropriate regulatory agency an 

application for registration in such form 

and containing such information and 

documents as such appropriate 

regulatory agency may prescribe to be 

necessary or appropriate in furtherance 

of the purposes of this section. 

Request for Comment 

Comments submitted in response to 

this notice will be summarized and 

included in the request for OMB 

approval. All comments will become a 

matter of public record. Comments are 

invited on: 

(a) Whether the collection of 

information is necessary for the proper 

performance of the functions of the 

OCC, including whether the information 

has practical utility; 

(b) The accuracy of the OCC’s 

estimate of the burden of the collection 

of information; 

(c) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

(d) Ways to minimize the burden of 

the collection on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology; and 

(e) Estimates of capital or start-up 

costs and costs of operation, 

maintenance, and purchase of services 

to provide information. 

Theodore J. Dowd, 

Deputy Chief Counsel, Office of the 

Comptroller of the Currency. 

[FR Doc. 2024–02822 Filed 2–9–24; 8:45 am] 

BILLING CODE 4810–33–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

Agency Information Collection 

Activities: Information Collection 

Renewal; Submission for OMB Review; 

Capital Adequacy Standards 

AGENCY: Office of the Comptroller of the 

Currency (OCC), Treasury. 

ACTION: Notice and request for comment. 

SUMMARY: The OCC, as part of its 

continuing effort to reduce paperwork 

and respondent burden, invites 

comment on a continuing information 

collection, as required by the Paperwork 

Reduction Act of 1995 (PRA). In 

accordance with the requirements of the 

PRA, the OCC may not conduct or 

sponsor, and the respondent is not 

required to respond to, an information 

collection unless it displays a currently 

valid Office of Management and Budget 

(OMB) control number. The OCC is 

soliciting comment concerning a 

revision to its information collection 

titled, ‘‘Capital Adequacy Standards.’’ 

The OCC also is giving notice that it has 

sent the collection to OMB for review. 

DATES: Comments must be received by 

March 13, 2024. 

ADDRESSES: Commenters are encouraged 

to submit comments by email, if 

possible. You may submit comments by 

any of the following methods: 

• Email: prainfo@occ.treas.gov. 

• Mail: Chief Counsel’s Office, 

Attention: Comment Processing, Office 

of the Comptroller of the Currency, 

Attention: 1557–0318, 400 7th Street 

SW, Suite 3E–218, Washington, DC 

20219. 

• Hand Delivery/Courier: 400 7th 

Street SW, Suite 3E–218, Washington, 

DC 20219. 

• Fax: (571) 293–4835. 

Instructions: You must include 

‘‘OCC’’ as the agency name and ‘‘1557– 

0318’’ in your comment. In general, the 

OCC will publish comments on 

www.reginfo.gov 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. 

Written comments and 

recommendations for the proposed 

information collection should also be 

sent within 30 days of publication of 

this notice to www.reginfo.gov/public/ 

do/PRAMain. You can find this 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. 

You may review comments and other 

related materials that pertain to this 

information collection following the 

close of the 30-day comment period for 

this notice by the method set forth in 

the next bullet. 

• Viewing Comments Electronically: 

Go to www.reginfo.gov. Hover over the 

‘‘Information Collection Review’’ tab 

and click on ‘‘Information Collection 

Review’’ from the drop-down menu. 

From the ‘‘Currently under Review’’ 

drop-down menu, select ‘‘Department of 

Treasury’’ and then click ‘‘submit.’’ This 

information collection can be located by 

searching OMB control number ‘‘1557– 

0318’’ or ‘‘Capital Adequacy 

Standards.’’ Upon finding the 

appropriate information collection, click 

on the related ‘‘ICR Reference Number.’’ 

On the next screen, select ‘‘View 


khammond on DSKJM1Z7X2PROD with NOTICES
9910 Federal Register / Vol. 89, No. 29 / Monday, February 12, 2024 / Notices 

Supporting Statement and Other 

Documents’’ and then click on the link 

to any comment listed at the bottom of 

the screen. 

• For assistance in navigating 

www.reginfo.gov, please contact the 

Regulatory Information Service Center 

at (202) 482–7340. 

FOR FURTHER INFORMATION CONTACT: 

Shaquita Merritt, Clearance Officer, 

(202) 649–5490, Chief Counsel’s Office, 

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. 

SUPPLEMENTARY INFORMATION: Under the 

PRA (44 U.S.C. 3501 et seq.), Federal 

agencies must obtain approval from the 

OMB for each collection of information 

that they conduct or sponsor. 

‘‘Collection of information’’ is defined 

in 44 U.S.C. 3502(3) and 5 CFR 

1320.3(c) to include agency requests or 

requirements that members of the public 

submit reports, keep records, or provide 

information to a third party. The OCC 

asks that OMB extend its approval of the 

collection in this notice. 

Title: Capital Adequacy Standards. 

OMB Control No.: 1557–0318. 

Type of Review: Regular. 

Affected Public: Businesses or other 

for-profit. 

Abstract: The OCC is seeking renewal 

with revision of an information 

collection approval for the 

recordkeeping, reporting, and disclosure 

requirements associated with capital 

adequacy standards applicable to 

national banks and Federal savings 

associations. The OCC is proposing 

revisions in connection with this 

extension to reflect more granular detail 

for certain existing reporting and 

recordkeeping provisions and is 

improving prior estimates regarding the 

number of respondents and burden 

associated with these existing 

provisions. In addition, reporting 

burden associated with 12 CFR 3.304 is 

being removed as that portion of the 

rule is no longer in effect. 

Section-by-Section Analysis 

Twelve CFR part 3 sets forth the 

OCC’s minimum capital requirements 

and overall capital adequacy standards 

for national banks and Federal savings 

associations. 

Minimum Regulatory Capital Ratios 

Reporting Requirements 

Section 3.3(c) allows for the 

recognition of netting across multiple 

types of transactions or agreements if 

the national bank or Federal savings 

association obtains a written legal 

opinion verifying the validity and 

enforceability of the agreement under 

certain circumstances. 

Section 3.22(b)(2)(iv) permits, with 

prior notice to the OCC, a national bank 

or Federal savings association resulting 

from a merger, acquisition, or purchase 

transaction that is not an advanced 

approaches national bank or Federal 

savings association to change its AOCI 

opt-out election. 

Section 3.22(c)(4) provides that, with 

the prior written approval of the OCC, 

a national bank or Federal savings 

association that underwrites a failed 

underwriting is not required to deduct 

an investment in the capital of an 

unconsolidated financial institution to 

the extent the investment is related to 

the failed underwriting. 

Section 3.22(c)(5)(i) provides that, 

with the prior written approval of the 

OCC, an advanced approaches national 

bank or Federal savings association that 

underwrites a failed underwriting, for 

the period of time stipulated by the 

OCC, is not required to deduct from 

capital a non-significant investment in 

the capital of an unconsolidated 

financial institution or an investment in 

a covered debt instrument to the extent 

the investment is related to the failed 

underwriting. 

Section 3.22(c)(6) provides that, with 

prior written approval of the OCC and 

for the period of time stipulated by the 

OCC, an advanced approaches national 

bank or Federal savings association that 

underwrites a failed underwriting is not 

required to deduct the significant 

investment in the capital of an 

unconsolidated financial institution or 

an investment in a covered debt 

instrument if such investment is related 

to such failed underwriting. 

Section 3.22(d)(2)(i)(C) provides that, 

with the prior written approval of the 

OCC and for the period of time 

stipulated by the OCC, an advanced 

approaches national bank or Federal 

savings association that underwrites a 

failed underwriting is not required to 

deduct a significant investment in the 

capital of an unconsolidated financial 

institution in the form of common stock 

if such investment is related to such 

failed underwriting. 

Section 3.22(d)(2)(iii) permits an 

advanced approaches national bank or 

Federal savings association to change its 

exclusion preference to exclude 

deferred tax assets (DTAs) and deferred 

tax liabilities (DTLs) relating to 

adjustments relating to common equity 

tier 1 capital after obtaining the prior 

approval of the OCC. 

Section 3.22(h)(2)(iii)(A) permits the 

use of a conservative estimate of the 

amount of an institution’s investment in 

its own capital or the capital of 

unconsolidated financial institutions 

held through an index security with 

prior approval by the OCC. 

Recordkeeping Requirements 

Section 3.3(d) allows for the 

recognition of an agreement as a 

qualifying master netting agreement if 

the national bank or Federal savings 

association conducts a sufficient legal 

review and maintains sufficient written 

documentation of that legal review to 

conclude that the agreement continues 

to satisfy the requirements of the 

definition of qualifying master netting 

agreement that a relevant court would 

find to be legal, valid, binding, and 

enforceable. Section 3.3(d) further 

requires national banks and Federal 

savings associations to establish and 

maintain written procedures to monitor 

possible changes in relevant law and to 

ensure that the agreement continues to 

satisfy the requirements of the 

definition of qualifying master netting 

agreement. 

Standardized Approach 

Reporting Requirements 

Section 3.37(c)(4)(i)(E) requires that a 

bank or Federal savings association 

obtain the prior approval of the OCC for, 

and notify the OCC if it makes, any 

material changes to the policies and 

procedures describing how it 

determines the period of significant 

financial stress used to calculate its own 

internal estimates for haircuts and be 

able to provide empirical support for the 

period used. 

Recordkeeping Requirements 

Section 3.35(b)(3)(i)(A) requires for a 

cleared transaction with a qualified 

central counterparty (QCCP), that a 

client bank apply a risk weight of two 

percent, provided that the collateral 

posted by the national bank or Federal 

savings association to the QCCP is 

subject to certain arrangements and the 

client bank has conducted a sufficient 

legal review (and maintains sufficient 

written documentation of the legal 

review) to conclude with a wellfounded basis that the arrangements, in 

the event of a legal challenge, would be 

found to be legal, valid, binding, and 

enforceable under the law of the 

relevant jurisdictions. 

Section 3.37(c)(4)(i)(E) requires that a 

national bank or Federal savings 

association have policies and 

procedures in place describing how it 

determines the period of significant 

financial stress used to calculate its own 

internal estimates for haircuts and be 


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able to provide empirical support for the 

period used. 

Section 3.41(b), which sets forth 

operational requirements for 

securitization exposures, allows a 

national bank or Federal savings 

association to recognize for risk-based 

capital purposes, in the case of synthetic 

securitizations, a credit risk mitigant to 

hedge underlying exposures if certain 

conditions are met. Section 3.41(b)(3) 

includes a requirement that the national 

bank or Federal savings association 

obtain a well-reasoned opinion from 

legal counsel that confirms the 

enforceability of the credit risk mitigant 

in all relevant jurisdictions. 

Section 3.41(c)(2)(i) requires that a 

national bank or Federal savings 

association demonstrate its 

comprehensive understanding of a 

securitization exposure by conducting 

an analysis of the risk characteristics of 

each securitization exposure prior to its 

acquisition, taking into account a 

number of specified considerations and 

documenting the analysis within three 

business days after acquiring the 

exposure. 

Section 3.41(c)(2)(ii) requires a 

national bank or Federal savings 

association, on an on-going basis (no 

less frequently than quarterly), to 

evaluate, review, and update as 

appropriate the analysis required under 

§ 3.41(c)(1) for each securitization 

exposure. 

Disclosure Requirements 

In a case where a national bank or 

Federal savings association provides 

non-contractual support (i.e., implicit 

support) to a securitization, § 3.42(e)(2) 

requires the national bank or Federal 

savings association to publicly disclose 

that it has provided implicit support to 

the securitization and the risk-based 

capital impact to the bank or savings 

association of providing such implicit 

support. 

Section 3.62 sets forth disclosure 

requirements related to the capital 

requirements of a national bank or 

Federal savings association. Section 

3.61 provides that these requirements 

apply to an institution with total 

consolidated assets of $50 billion or 

more that is not a consolidated 

subsidiary of a bank holding company, 

savings and loan holding company, or a 

depository institution subject to the 

disclosure requirements of § 3.62. For 

national banks or Federal savings 

associations subject to the disclosure 

requirements, § 3.62(a) requires 

quarterly disclosure of information in 

the applicable tables in § 3.63 and, if a 

significant change occurs, such that the 

most recent reported amounts are no 

longer reflective of the institution’s 

capital adequacy and risk profile, 

§ 3.62(a) requires the national bank or 

Federal savings association to disclose 

as soon as practicable thereafter a brief 

discussion of the change and its likely 

impact. Section 3.62(a) also permits 

annual disclosure of qualitative 

information that typically does not 

change each quarter, provided that any 

significant changes are disclosed in the 

interim. 

Section 3.62(b) requires that a 

national bank or Federal savings 

association have a formal disclosure 

policy approved by the board of 

directors that addresses its approach for 

determining the disclosures it makes. 

The policy must address the associated 

internal controls and disclosure controls 

and procedures. Section 3.62(c) permits 

a national bank or Federal savings 

association to disclose more general 

information about certain subjects if the 

national bank or Federal savings 

association concludes that the specific 

commercial or financial information 

required to be disclosed under § 3.62 is 

exempt from disclosure under the 

Freedom of Information Act (5 U.S.C. 

552) and the national bank or Federal 

savings association provides the reason 

the specific items of information have 

not been disclosed. 

Currently, § 3.63 sets forth the specific 

disclosure requirements for a nonadvanced approaches national bank or 

Federal savings association with total 

consolidated assets of $50 billion or 

more that is not a consolidated 

subsidiary of a bank holding company, 

savings and loan holding company, or a 

depository institution subject to the 

disclosure requirements of § 3.62. 

Section 3.63(a) requires those 

institutions to make the disclosures in 

Tables 1 through 10 in § 3.63 and in 

§ 3.63(b) for each of the last three years 

beginning on the effective date of the 

rule. Section 3.63(b) requires quarterly 

disclosure of an institution’s common 

equity tier 1 capital, additional tier 1 

capital, tier 2 capital, tier 1 and total 

capital ratios, including the regulatory 

capital elements and all the regulatory 

adjustments and deductions needed to 

calculate the numerator of such ratios; 

total risk-weighted assets, including the 

different regulatory adjustments and 

deductions needed to calculate total 

risk-weighted assets; regulatory capital 

ratios during any transition periods, 

including a description of all the 

regulatory capital elements and all 

regulatory adjustments and deductions 

needed to calculate the numerator and 

denominator of each capital ratio during 

any transition period; and a 

reconciliation of regulatory capital 

elements as they relate to its balance 

sheet in any audited consolidated 

financial statements. Tables 1 through 

10 in § 3.63 set forth qualitative and/or 

quantitative requirements for scope of 

application, capital structure, capital 

adequacy, capital conservation buffer, 

credit risk, counterparty credit riskrelated exposures, credit risk mitigation, 

securitizations, equities not subject to 

Subpart F (Market Risk requirements) of 

the rule, and interest rate risk for nontrading activities. 

Advanced Approaches 

Reporting Requirements 

Section 3.121(b)(2) requires a national 

bank or Federal savings association to 

submit an implementation plan, 

together with a copy of the minutes of 

the board of director’s approval, to the 

OCC at least 60 days before the national 

bank or Federal savings association 

proposes to begin its parallel run, unless 

the OCC waives prior notice. 

Section 3.121(c) requires that during a 

parallel run, a national bank or Federal 

savings association report to the OCC on 

a calendar quarterly basis its risk-based 

capital ratios. 

Section 3.122(d)–(g) requires a 

national bank or Federal savings 

association to obtain the prior written 

approval of the OCC under § 3.132 to 

use the internal models methodology for 

counterparty credit risk and the 

advanced CVA approach for the CVA 

capital requirement, § 3.135 to use the 

double default treatment, § 3.153 to use 

the internal models approach for equity 

exposures, and § 3.122(g)(3) to generate 

an estimate of its operational risk 

exposure using an alternative approach. 

Section 3.123 references ongoing 

qualification requirements that would 

require an institution to notify the OCC 

of any material change to an advance 

system and establish and submit to the 

OCC a plan for returning to compliance 

with the qualification requirements. 

Section 3.124 requires a national bank 

or Federal savings association to submit 

to the OCC, within 90 days of 

consummating a merger or acquisition, 

an implementation plan for using its 

advanced systems for the merged or 

acquired company. 

Section 3.132(b)(2)(iii)(A) addresses 

internal estimates for haircuts for 

counterparty credit risk of repo-style 

transactions, eligible margin loans, and 

over-the-counter (OTC) derivative 

contracts. With the prior written 

approval of the OCC, a national bank or 

Federal savings association may 

calculate haircuts using its own internal 

estimates of the volatilities of market 

prices and foreign exchange rates. The 


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9912 Federal Register / Vol. 89, No. 29 / Monday, February 12, 2024 / Notices 

section requires national banks and 

Federal savings associations to satisfy 

certain minimum quantitative standards 

in order to receive OCC approval to use 

its own internal estimates. 

Section 3.132(b)(3) covers 

counterparty credit risk of repo-style 

transactions, eligible margin loans, OTC 

derivative contracts, and simple Valueat-Risk (VaR) methodology. With the 

prior written approval of the OCC, a 

national bank or Federal savings 

association may estimate exposure at 

default (EAD) for a netting set using a 

VaR model that meets certain 

requirements. 

Section 3.132(d)(1)(i) permits the use 

of the internal models methodology 

(IMM) to determine EAD for 

counterparty credit risk for derivative 

contracts with prior written approval 

from the OCC. 

Section 3.132(d)(1)(iii) permits the 

use of the internal models methodology 

for derivative contracts, eligible margin 

loans, and repo-style transactions 

subject to a qualifying cross-product 

netting agreement with prior written 

approval from the OCC. 

Section 3.132(d)(2) addresses 

counterparty credit risk of repo-style 

transactions, eligible margin loans, and 

OTC derivative contracts, and riskweighted assets using IMM. Under the 

IMM, an institution uses an internal 

model to estimate the expected 

exposure (EE) for a netting set and then 

calculates EAD based on that EE. A 

national bank or Federal savings 

association must calculate two EEs and 

two EADs (one stressed and one 

unstressed) for each netting as outlined 

in this section. Section 3.132(d)(2)(iv) 

provides that a national bank or Federal 

savings association may use a 

conservative measure of EAD subject to 

prior written approval of the OCC. 

Section 3.153(b) outlines the Internal 

Models Approach (IMA) for calculating 

risk-weighted assets for equity 

exposures and specifies that a national 

bank or Federal savings association 

must receive prior written approval 

from the OCC before it can use IMA by 

demonstrating to the OCC that the 

national bank or Federal savings 

association meets certain criteria. 

Recordkeeping Requirements 

Section 3.121 requires a national bank 

or Federal savings association subject to 

the advanced approaches risk-based 

capital requirements to adopt a written 

implementation plan to address how it 

will comply with the advanced capital 

adequacy framework’s qualification 

requirements and also develop and 

maintain a comprehensive and sound 

planning and governance process to 

oversee the implementation efforts 

described in the plan. Section 3.122 

further requires these institutions to: 

develop processes for assessing capital 

adequacy in relation to an organization’s 

risk profile; establish and maintain 

internal risk rating and segmentation 

systems for wholesale and retail risk 

exposures, including comprehensive 

risk parameter quantification processes 

and processes for annual reviews and 

analyses of reference data to determine 

their relevance; document their 

processes for identifying, measuring, 

monitoring, controlling, and internally 

reporting operational risk; verify the 

accurate and timely reporting of riskbased capital requirements; and 

monitor, validate, and refine their 

advanced systems. 

Section 3.132(d)(3)(vi) addresses 

counterparty credit risk of repo-style 

transactions, eligible margin loans, and 

OTC derivative contracts. To obtain 

OCC approval to calculate the 

distributions of exposures upon which 

the EAD calculation is based, a national 

bank or Federal savings association 

must demonstrate to the satisfaction of 

the OCC that it has been using for at 

least one year an internal model that 

broadly meets the minimum standards 

with which the national bank or Federal 

savings association must maintain 

compliance. The national bank or 

Federal savings association must have 

procedures to identify, monitor, and 

control wrong-way risk throughout the 

life of an exposure and they must 

include stress testing and scenario 

analysis. 

Section 3.132(d)(3)(viii) addresses 

counterparty credit risk of repo-style 

transactions, eligible margin loans, and 

OTC derivative contracts. When 

estimating model parameters based on a 

stress period, a national bank or Federal 

savings association must use at least 

three years of historical data that 

include a period of stress to the credit 

default spreads of its counterparties. 

The national bank or Federal savings 

association must review the data set and 

update the data as necessary, 

particularly for any material changes in 

its counterparties. The national bank or 

Federal savings association must 

demonstrate at least quarterly that the 

stress period coincides with increased 

credit default swap (CDS) or other credit 

spreads of the institution’s 

counterparties. The national bank or 

Federal savings association must have 

procedures to evaluate the effectiveness 

of its stress calibration that include a 

process for using benchmark portfolios 

that are vulnerable to the same risk 

factors as the national bank’s or Federal 

savings association’s portfolio. The OCC 

may require the institution to modify its 

stress calibration to better reflect actual 

historic losses of the portfolio. 

Section 3.132(d)(3)(ix), regarding 

counterparty credit risk of repo-style 

transactions, eligible margin loans, and 

OTC derivative contracts, requires that a 

national bank or Federal savings 

association must subject its internal 

model to an initial validation and 

annual model review process that 

includes consideration of whether the 

inputs and risk factors, as well as the 

model outputs, are appropriate. The 

section requires national banks and 

Federal savings associations to have a 

backtesting program for its model that 

includes a process by which 

unacceptable model performance will 

be determined and remedied. 

Section 3.132(d)(3)(x), regarding 

counterparty credit risk of repo-style 

transactions, eligible margin loans, and 

OTC derivative contracts, provides that 

a national bank or Federal savings 

association must have policies for the 

measurement, management, and control 

of collateral and margin amounts. 

Section 3.132(d)(3)(xi), concerning 

counterparty credit risk of repo-style 

transactions, eligible margin loans, and 

OTC derivative contracts, states that a 

national bank or Federal savings 

association must have a comprehensive 

stress testing program that captures all 

credit exposures to counterparties and 

incorporates stress testing of principal 

market risk factors and creditworthiness 

of counterparties. 

Section 3.133(b)(3)(i)(A) permits a 

national bank or Federal savings 

association to assign a two percent risk 

weight to an exposure to a qualifying 

central counterparty (QCCP), if the 

institution conducts sufficient legal 

review, and maintains written 

documentation of that review. 

Section 3.141(b)(3) requires a national 

bank or Federal savings association to 

obtain a well-reasoned legal opinion 

confirming the enforceability of the 

credit risk mitigant in all relevant 

jurisdictions in order to recognize the 

transference of risk in connection with 

a synthetic securitization. 

Sections 3.141(c)(1) and 3.141(c)(2)(i) 

require a national bank or Federal 

savings association to demonstrate its 

comprehensive understanding of a 

securitization exposure for each 

securitization exposure by conducting 

an analysis of the risk characteristics of 

a securitization exposure prior to 

acquiring the exposure and document 

such analysis within three business 

days after acquiring the exposure. 

Section 3.141(c)(2)(ii) requires that 

institutions, on an on-going basis (at 

least quarterly), evaluate, review, and 


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Federal Register / Vol. 89, No. 29 / Monday, February 12, 2024 / Notices 9913 

1Respondents represent all active national banks 

and Federal savings associations as of September 

30, 2023. 

1Public Law 104–13, 44 U.S.C. 3506(c)(2)(A). 

2The AML Act was enacted as Division F, 

sections 6001–6511, of the William M. (Mac) 

Thornberry National Defense Authorization Act for 

Fiscal Year 2021, Public Law 116–283, 134 Stat. 

3388 (2021). 

update as appropriate the analysis 

required under this section for each 

securitization exposure. 

Disclosure Requirements 

Section 3.142, which outlines the 

capital treatment for securitization 

exposures, requires a national bank or 

Federal savings association to disclose 

publicly that it has provided implicit 

support to a securitization and the 

regulatory capital impact to the 

institution of providing such implicit 

support. Specifically, § 3.124(a) requires 

a national bank or Federal savings 

association that merges with or acquires 

a company that does not calculate its 

risk-based capital requirements using 

advanced systems and uses subpart D to 

determine the risk-weighted asset 

amounts for the merged or acquired 

company’s exposures, the national bank 

or Federal savings association must 

disclose publicly the amounts of riskweighted assets and qualifying capital 

calculated under this subpart for the 

bank or savings association and under 

subpart D for the acquired company. 

Section 3.172 specifies that each 

national bank or Federal savings 

association that is an advanced 

approaches national bank or Federal 

savings association, that has completed 

the parallel run process, must publicly 

disclose its total and tier 1 risk-based 

capital ratios and their components. 

Section 3.173 addresses disclosures 

by an advanced approaches national 

bank or Federal savings association that 

is not a consolidated subsidiary of a 

bank holding company, savings and 

loan holding company, or a depository 

institution subject to the disclosure 

requirements of § 3.172. An advanced 

approaches institution that is subject to 

the disclosure requirements must make 

the disclosures described in § 3.173, 

Tables 1 through 12. The national bank 

or Federal savings association must 

make these disclosures publicly 

available for each of the last three years 

(that is, twelve quarters) or such shorter 

period beginning on the effective date of 

this subpart E. The tables in § 3.173 

require qualitative and quantitative 

public disclosures for capital structure, 

capital adequacy, capital conservation 

and countercyclical buffers, general 

disclosures related to credit risk, credit 

risk disclosures for portfolios subject to 

IRB risk-based capital formulas, general 

disclosures related to counterparty 

credit risk of OTC derivative contracts, 

repo-style transactions, and eligible 

margin loans, credit risk mitigation, 

securitization, operational risk, equities 

not subject to the market risk capital 

requirements, and interest rate risk for 

non-trading activities. 

Estimated Burden: 

Estimated Number of Respondents: 

1,014 national banks and Federal 

savings associations.1

Estimated Total Annual Burden 

Hours: 87,087. 

Estimated Frequency of Response: On 

occasion. 

Comments: On November 21, 2023, 

the OCC published a 60-day notice for 

this information collection, (88 FR 

81176). No comments were received. 

Comments continue to be invited on: 

(a) Whether the collection of 

information is necessary for the proper 

performance of the functions of the 

OCC, including whether the information 

has practical utility; 

(b) The accuracy of the OCC’s 

estimate of the burden of the collection 

of information; 

(c) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

(d) Ways to minimize the burden of 

the collection on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology; and 

(e) Estimates of capital or start-up 

costs and costs of operation, 

maintenance, and purchase of services 

to provide information. 

Theodore J. Dowd, 

Deputy Chief Counsel, Office of the 

Comptroller of the Currency. 

[FR Doc. 2024–02736 Filed 2–9–24; 8:45 am] 

BILLING CODE 4810–33–P 

DEPARTMENT OF THE TREASURY 

Financial Crimes Enforcement Network 

Agency Information Collection 

Activities; Proposed Renewal; 

Comment Request; Renewal Without 

Change of Reports by Financial 

Institutions of Suspicious 

Transactions and FinCEN Form 111— 

Suspicious Activity Report 

AGENCY: Financial Crimes Enforcement 

Network (FinCEN), Treasury. 

ACTION: Notice and request for 

comments. 

SUMMARY: As part of its continuing effort 

to reduce paperwork and respondent 

burden, FinCEN invites comment on a 

renewal, without change, of existing 

information collection requirements 

relating to reports of suspicious 

transactions. Under Bank Secrecy Act 

regulations, financial institutions are 

required to report suspicious 

transactions using FinCEN Form 111 

(the suspicious activity report, or SAR). 

This request for comments is made 

pursuant to the Paperwork Reduction 

Act of 1995 (PRA). 

DATES: Written comments are welcome 

and must be received on or before April 

12, 2024. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

• Federal E-rulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

Refer to Docket Number FINCEN–2024– 

0004 and the specific Office of 

Management and Budget (OMB) control 

numbers 1506–0001, 1506–0006, 1506– 

0015, 1506–0019, 1506–0029, 1506– 

0061, and 1506–0065. 

• Mail: Policy Division, Financial 

Crimes Enforcement Network, P.O. Box 

39, Vienna, VA 22183. Refer to Docket 

Number FINCEN–2024–0004 and OMB 

control numbers 1506–0001, 1506–0006, 

1506–0015, 1506–0019, 1506–0029, 

1506–0061, and 1506–0065. 

Please submit comments by one 

method only. Comments will be 

reviewed consistent with the PRA 1 and 

applicable OMB regulations and 

guidance. All comments submitted in 

response to this notice will become a 

matter of public record. Therefore, you 

should submit only information that 

you wish to make publicly available. 

FOR FURTHER INFORMATION CONTACT: 

FinCEN’s Regulatory Support Section at 

1–800–767–2825 or electronically at 

frc@fincen.gov. 

SUPPLEMENTARY INFORMATION: 

I. Statutory and Regulatory Provisions 

The legislative framework generally 

referred to as the Bank Secrecy Act 

(BSA) consists of the Currency and 

Foreign Transactions Reporting Act of 

1970, as amended by the Uniting and 

Strengthening America by Providing 

Appropriate Tools Required to Intercept 

and Obstruct Terrorism Act of 2001 

(USA PATRIOT Act), Public Law 107– 

56 (October 26, 2001), and other 

legislation, including the Anti-Money 

Laundering Act of 2020 (AML Act).2

The BSA is codified at 12 U.S.C. 1829b, 

12 U.S.C. 1951–1960, and 31 U.S.C. 

5311–5314 and 5316–5336, and notes 

thereto, with implementing regulations 

at 31 CFR chapter X. 

The BSA authorizes the Secretary of 

the Treasury (the ‘‘Secretary’’), inter 


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