[Federal Register Volume 87, Number 41 (Wednesday, March 2, 2022)]
[Notices]
[Pages 11705-11706]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-04347]


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FEDERAL RESERVE SYSTEM

[FR NN; OMB No. 7100-0353]


Agency Information Collection Activities: Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
is adopting a proposal to extend for three years, without revision, 
Reporting, Recordkeeping, and Disclosure Requirements Associated with 
Regulation NN.

FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance 
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of 
Governors of the Federal Reserve System, Washington, DC 20551, (202) 
452-3829.
    Office of Management and Budget (OMB) Desk Officer for the Federal 
Reserve Board, Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Room 10235, 725 
17th Street NW, Washington, DC 20503, or by fax to (202) 395-6974.

SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board 
authority under the Paperwork Reduction Act (PRA) to approve and assign 
OMB control numbers to collections of information conducted or 
sponsored by the Board. Board-approved collections of information are 
incorporated into the official OMB inventory of currently approved 
collections of information. The OMB inventory, as well as copies of the 
PRA Submission, supporting statements, and approved collection of 
information instrument(s) are available at https://www.reginfo.gov/public/do/PRAMain. These documents are also available on the Federal 
Reserve Board's public website at https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested from the agency clearance 
officer, whose name appears above.

Final Approval Under OMB Delegated Authority of the Extension for Three 
Years, Without Revision, of the Following Information Collection

    Report title: Reporting, Recordkeeping, and Disclosure Requirements 
Associated with Regulation NN.
    Agency form number: FR NN.
    OMB control number: 7100-0353.
    Frequency: As needed.
    Respondents: State member banks, uninsured state-licensed branches 
of foreign banks, financial holding companies, bank holding companies, 
savings and loan holding companies, agreement corporations, and Edge 
Act corporations that engage in retail foreign exchange transactions 
(collectively, banking institutions).
    Estimated number of respondents: Reporting, section 240.4: 1; 
recordkeeping, sections 240.7, 240.9(b)(2), and 240.13(a): 2; 
disclosure, sections 240.5(a), 240.6, 240.10, 240.13(c)-(d), 240.15, 
and 240.16(a) and (b): 2.
    Estimated average hours per response: Reporting, section 240.4: 16; 
recordkeeping, sections 240.7, 240.9(b)(2), and 240.13(a): 183; 
disclosure, sections 240.5(a), 240.6, 240.10, 240.13(c)-(d), 240.15, 
and 240.16(a) and (b): 787.
    Estimated annual burden hours: Reporting, section 240.4: 16; 
recordkeeping, sections 240.7, 240.9(b)(2), and 240.13(a): 366; 
disclosure, sections 240.5(a), 240.6, 240.10, 240.13(c)-(d), 240.15, 
and 240.16(a) and (b): 1,574.
    General description of report: Section 742(c)(2) of the Dodd-Frank 
Wall Street Reform and Consumer Protection Act amended section 2(c)(2) 
of the Commodity Exchange Act (CEA) to prohibit persons supervised by 
certain Federal regulatory agencies, including the Board, from entering 
into, or offering to enter into, certain types of foreign exchange 
transactions, except pursuant to a rule or regulation promulgated by 
the relevant supervising agency. The Board's Regulation NN (12 CFR part 
240) authorizes banking institutions supervised by the Board to conduct 
retail foreign exchange transactions and establishes certain reporting, 
recordkeeping, and disclosure requirements for banking institutions 
that choose to conduct such transactions.
    Legal authorization and confidentiality: The reporting, 
recordkeeping, and disclosure requirements in Regulation NN are 
authorized pursuant to section 2(c)(2)(E)

[[Page 11706]]

of the CEA,\1\ which prohibits a United States financial institution 
and its related persons under the supervision of a Federal regulatory 
agency, such as the Board, from offering or entering into certain types 
of foreign exchange transactions with retail customers except pursuant 
to a rule or regulation prescribed by the appropriate Federal 
regulatory agency allowing the transaction under such terms and 
conditions as the Federal regulatory agency shall prescribe.\2\ 
Regulation NN's reporting, recordkeeping, and disclosure requirements 
are mandatory for banking institutions that engage in retail foreign 
exchange transactions.
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    \1\ 7 U.S.C. 2(c)(2)(E).
    \2\ Additionally, the Board also has the authority to require 
reports from state member banks under section 11 of the Federal 
Reserve Act (FRA), 12 U.S.C. 248; from branches of foreign banks 
under sections 9 and 13 of the International Banking Act of 1978, 12 
U.S.C. 3106a and 3108; from bank holding companies under section 
5(b) and (c) of the Bank Holding Company Act of 1956, 12 U.S.C. 
1844(b) and (c); from savings and loan holding companies under 
section 10 of the Home Owners' Loan Act, 12 U.S.C. 1467a(b) and (g); 
from Edge Act corporations under section 25A(17) of the FRA, 12 
U.S.C. 625; and from agreement corporations under section 25 of the 
FRA, 12 U.S.C. 601-604a.
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    The reporting requirement under section 240.4 of Regulation NN 
requires a banking institution to provide a prior written notice to the 
Board that includes information concerning customer due diligence; the 
policies and procedures for haircuts to be applied to noncash margin; 
information concerning new product approvals; and information on 
addressing conflicts of interest. This information is likely to 
constitute nonpublic commercial or financial information, which is both 
customarily and actually treated as private by the respondent, and thus 
may be kept confidential by the Board pursuant to exemption 4 of the 
Freedom of Information Act (FOIA).\3\ In addition, the prior written 
notice must also include a resolution of the banking institution's 
board of directors certifying that the institution has written 
policies, procedures, and risk measurement and management systems and 
controls in place to ensure retail foreign exchange transactions are 
conducted in a safe and sound manner and in compliance with Regulation 
NN. Generally, this resolution by the board of directors would not be 
accorded confidential treatment. If confidential treatment is requested 
by a banking institution, the Board will review the request to 
determine if confidential treatment is appropriate.
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    \3\ 5 U.S.C. 552(b)(4).
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    The records and disclosures required by Regulation NN generally are 
not submitted to the Federal Reserve. Accordingly, confidentiality 
issues generally do not arise under the FOIA. In the event such records 
or disclosures are obtained by the Federal Reserve through the 
examination or enforcement process, such information may be kept 
confidential under exemption 8 of the FOIA,\4\ which protects 
information contained in or related to an examination of a financial 
institution.
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    \4\ 5 U.S.C. 552(b)(8).
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    Current actions: On November 23, 2021, the Board published a notice 
in the Federal Register (86 FR 66561) requesting public comment for 60 
days on the extension, without revision, of the FR NN. The comment 
period for this notice expired on January 24, 2022. The Board did not 
receive any comments.

    Board of Governors of the Federal Reserve System, February 24, 
2022.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2022-04347 Filed 3-1-22; 8:45 am]
BILLING CODE 6210-01-P