81 FR 72672 - Agency Information Collection Activities: Information Collection Renewal; Comment Request; Retail Foreign Exchange Transactions

DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency

Federal Register Volume 81, Issue 203 (October 20, 2016)

Page Range		72672-72673
FR Document		2016-25391

The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to 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 on the renewal of its information collection titled ``Retail Foreign Exchange Transactions.''

Federal Register, Volume 81 Issue 203 (Thursday, October 20, 2016)

[Federal Register Volume 81, Number 203 (Thursday, October 20, 2016)]
[Notices]
[Pages 72672-72673]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-25391]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Comment Request; Retail Foreign Exchange Transactions

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.

ACTION: Notice and request for comment.

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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites the general public and other Federal 
agencies to take this opportunity to 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 on the renewal of its information 
collection titled ``Retail Foreign Exchange Transactions.''

DATES: Comments must be submitted on or before December 19, 2016.

ADDRESSES: Because paper mail in the Washington, DC area and at the OCC 
is subject to delay, commenters are encouraged to submit comments by 
email, if possible. Comments may be sent to: Legislative and Regulatory 
Activities Division, Office of the Comptroller of the Currency, 
Attention: 1557-0250, 400 7th Street SW., Suite 3E-218, Mail Stop 9W-
11, Washington, DC 20219. In addition, comments may be sent by fax to 
(571) 465-4326 or by electronic mail to [email protected]. You may 
personally inspect and photocopy comments at the OCC, 400 7th Street 
SW., Washington, DC 20219. For security reasons, the OCC requires that 
visitors make an appointment to inspect comments. You may do so by 
calling (202) 649-6700 or, for persons who are deaf or hard of hearing, 
TTY, (202) 649-5597. Upon arrival, visitors will be required to present 
valid government-issued photo identification and submit to a security 
screening in order to inspect and photocopy comments.
    All 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.

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance 
Officer, (202) 649-5490 or, for persons who are deaf or hard of 
hearing, TTY, (202) 649-5597, Legislative and Regulatory Activities 
Division, Office of the Comptroller of the Currency, 400 7th Street 
SW., Washington, DC 20219.

SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal 
agencies must obtain approval from 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. Section 
3506(c)(2)(A) of title 44 requires Federal agencies to provide a 60-day 
notice in the Federal Register concerning each proposed collection of 
information, including each proposed extension of an existing 
collection of information, before submitting the collection to OMB for 
approval. To comply with this requirement, the OCC is publishing notice 
of the proposed collection of information set forth in this document.
    Title: Retail Foreign Exchange Transactions.
    OMB Control No.: 1557-0250.
    Type of Review: Regular.
    Frequency of Response: On occasion.
    Affected Public: Businesses or other for-profit.
    Estimated Number of Respondents: 15.
    Total Annual Burden: 22,418 hours.
    Description:

Background

    The OCC's retail forex rule (12 CFR part 48) allows national banks 
and Federal savings associations to offer retail foreign exchange 
transactions to its customers. In order to engage in these 
transactions, institutions must comply with various reporting, 
disclosure, and recordkeeping requirements included in that rule.

Reporting Requirements

    The reporting requirements in Sec.  48.4 state that, prior to 
initiating a retail forex business, a national bank or Federal savings 
association must provide the OCC with prior notice and obtain a written 
supervisory no-objection letter. In order to obtain a supervisory no-
objection letter, a national bank or Federal savings association must 
have written policies, procedures, and risk measurement and management 
systems and controls in place to ensure that retail forex transactions 
are conducted in a safe and sound manner. The national bank or Federal 
savings association also must provide other information required by the 
OCC, such as documentation of customer due diligence, new product 
approvals, and haircuts applied to noncash margins.

Disclosure Requirements

    Under Sec.  48.5, a national bank or Federal savings association 
must promptly provide the customer with a statement reflecting the 
financial result of the transactions and the name of the introducing 
broker to the account. The customer must provide specific written 
instructions on how the offsetting transaction should be applied.
    Section 48.6 requires that a national bank or Federal savings 
association furnish a retail forex customer with a written disclosure 
before opening an account through which the customer will engage in 
retail forex transactions. It further requires a national bank or 
Federal savings association to secure an acknowledgment from the 
customer that the disclosure was received and understood. Finally, the 
section requires the disclosure by a national bank or Federal savings 
association of its fees and other charges and its profitable accounts 
ratio.
    Section 48.10 requires a national bank or Federal savings 
association to issue monthly statements to each retail forex customer 
and to send confirmation statements following transactions.
    Section 48.13(c) prohibits a national bank or Federal savings 
association engaging in retail forex transactions from knowingly 
handling the account of any related person of another retail forex 
counterparty unless it receives proper written authorization, promptly 
prepares a written record of the order, and transmits to the 
counterparty copies all statements and written records. Section 
48.13(d) prohibits a related person of a national bank or Federal 
savings association engaging in forex transactions from having an 
account with another retail forex counterparty unless it receives 
proper written authorization and copies of all statements and written 
records for such accounts are transmitted to the counterparty.

[[Page 72673]]

    Section 48.15 requires a national bank or Federal savings 
association to provide a retail forex customer with 30 days prior 
notice of any assignment of any position or transfer of any account of 
the retail forex customer. It also requires a national bank or Federal 
savings association to which retail forex accounts or positions are 
assigned or transferred to provide the affected customers with risk 
disclosure statements and forms of acknowledgment and obtain the signed 
acknowledgments within 60 days.
    The customer dispute resolution provisions in Sec.  48.16 require 
certain endorsements, acknowledgments, and signatures. The section also 
requires that a national bank or Federal savings association, within 10 
days after receipt of notice from the retail forex customer that the 
customer intends to submit a claim to arbitration, provide the customer 
with a list of persons qualified in the dispute resolution.

Policies and Procedures; Recordkeeping

    Sections 48.7 and 48.13 require that a national bank or Federal 
savings association engaging in retail forex transactions keep full, 
complete, and systematic records and to establish and implement 
internal rules, procedures, and controls. Section 48.7 also requires 
that a national bank or Federal savings association keep account, 
financial ledger, transaction, and daily records, as well as memorandum 
orders, post-execution allocation of bunched orders, records regarding 
its ratio of profitable accounts, possible violations of law, records 
for noncash margin, and monthly statements and confirmations. Section 
48.9 requires policies and procedures for haircuts for noncash margin 
collected under the rule's margin requirements and annual evaluations 
and modifications of the haircuts.
    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 
information collection;
    (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.

    Dated: October 13, 2016.
Karen Solomon,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2016-25391 Filed 10-19-16; 8:45 am]
 BILLING CODE 4810-33-P

72672 Federal Register / Vol. 81, No. 203 / Thursday, October 20, 2016 / Notices

Issued in Washington, DC, on October 13, order to inspect and photocopy provide the OCC with prior notice and
2016. comments. obtain a written supervisory no-
Blair C. Anderson, All comments received, including objection letter. In order to obtain a
Under Secretary of Transportation for Policy. attachments and other supporting supervisory no-objection letter, a
[FR Doc. 2016–25392 Filed 10–19–16; 8:45 am] materials, are part of the public record national bank or Federal savings
BILLING CODE 4910–9X–P and subject to public disclosure. Do not association must have written policies,
include any information in your procedures, and risk measurement and
comment or supporting materials that management systems and controls in
you consider confidential or place to ensure that retail forex
DEPARTMENT OF THE TREASURY
inappropriate for public disclosure. transactions are conducted in a safe and
Office of the Comptroller of the FOR FURTHER INFORMATION CONTACT: sound manner. The national bank or
Currency Shaquita Merritt, OCC Clearance Federal savings association also must
Officer, (202) 649–5490 or, for persons provide other information required by
Agency Information Collection who are deaf or hard of hearing, TTY, the OCC, such as documentation of
Activities: Information Collection (202) 649–5597, Legislative and customer due diligence, new product
Renewal; Comment Request; Retail Regulatory Activities Division, Office of approvals, and haircuts applied to
Foreign Exchange Transactions the Comptroller of the Currency, 400 7th noncash margins.
Street SW., Washington, DC 20219. Disclosure Requirements
AGENCY: Office of the Comptroller of the
Currency (OCC), Treasury. SUPPLEMENTARY INFORMATION: Under the
PRA (44 U.S.C. 3501–3520), Federal Under § 48.5, a national bank or
ACTION: Notice and request for comment. Federal savings association must
agencies must obtain approval from
OMB for each collection of information promptly provide the customer with a
SUMMARY: The OCC, as part of its
that they conduct or sponsor. statement reflecting the financial result
continuing effort to reduce paperwork of the transactions and the name of the
and respondent burden, invites the ‘‘Collection of information’’ is defined
in 44 U.S.C. 3502(3) and 5 CFR introducing broker to the account. The
general public and other Federal customer must provide specific written
agencies to take this opportunity to 1320.3(c) to include agency requests or
requirements that members of the public instructions on how the offsetting
comment on a continuing information transaction should be applied.
collection as required by the Paperwork submit reports, keep records, or provide
information to a third party. Section Section 48.6 requires that a national
Reduction Act of 1995 (PRA).
3506(c)(2)(A) of title 44 requires Federal bank or Federal savings association
In accordance with the requirements
agencies to provide a 60-day notice in furnish a retail forex customer with a
of the PRA, the OCC may not conduct
the Federal Register concerning each written disclosure before opening an
or sponsor, and the respondent is not
proposed collection of information, account through which the customer
required to respond to, an information
including each proposed extension of an will engage in retail forex transactions.
collection unless it displays a currently
existing collection of information, It further requires a national bank or
valid Office of Management and Budget
before submitting the collection to OMB Federal savings association to secure an
(OMB) control number.
for approval. To comply with this acknowledgment from the customer that
The OCC is soliciting comment on the
requirement, the OCC is publishing the disclosure was received and
renewal of its information collection
notice of the proposed collection of understood. Finally, the section requires
titled ‘‘Retail Foreign Exchange
information set forth in this document. the disclosure by a national bank or
Transactions.’’
Title: Retail Foreign Exchange Federal savings association of its fees
DATES: Comments must be submitted on and other charges and its profitable
Transactions.
or before December 19, 2016. OMB Control No.: 1557–0250. accounts ratio.
ADDRESSES: Because paper mail in the Type of Review: Regular. Section 48.10 requires a national bank
Washington, DC area and at the OCC is Frequency of Response: On occasion. or Federal savings association to issue
subject to delay, commenters are Affected Public: Businesses or other monthly statements to each retail forex
encouraged to submit comments by for-profit. customer and to send confirmation
email, if possible. Comments may be Estimated Number of Respondents: statements following transactions.
sent to: Legislative and Regulatory 15. Section 48.13(c) prohibits a national
Activities Division, Office of the Total Annual Burden: 22,418 hours. bank or Federal savings association
Comptroller of the Currency, Attention: Description: engaging in retail forex transactions
1557–0250, 400 7th Street SW., Suite from knowingly handling the account of
3E–218, Mail Stop 9W–11, Washington, Background any related person of another retail
DC 20219. In addition, comments may The OCC’s retail forex rule (12 CFR forex counterparty unless it receives
be sent by fax to (571) 465–4326 or by part 48) allows national banks and proper written authorization, promptly
electronic mail to prainfo@occ.treas.gov. Federal savings associations to offer prepares a written record of the order,
You may personally inspect and retail foreign exchange transactions to and transmits to the counterparty copies
photocopy comments at the OCC, 400 its customers. In order to engage in all statements and written records.
7th Street SW., Washington, DC 20219. these transactions, institutions must Section 48.13(d) prohibits a related
For security reasons, the OCC requires comply with various reporting, person of a national bank or Federal
that visitors make an appointment to savings association engaging in forex
mstockstill on DSK3G9T082PROD with NOTICES

disclosure, and recordkeeping
inspect comments. You may do so by requirements included in that rule. transactions from having an account
calling (202) 649–6700 or, for persons with another retail forex counterparty
who are deaf or hard of hearing, TTY, Reporting Requirements unless it receives proper written
(202) 649–5597. Upon arrival, visitors The reporting requirements in § 48.4 authorization and copies of all
will be required to present valid state that, prior to initiating a retail statements and written records for such
government-issued photo identification forex business, a national bank or accounts are transmitted to the
and submit to a security screening in Federal savings association must counterparty.

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Federal Register / Vol. 81, No. 203 / Thursday, October 20, 2016 / Notices 72673

Section 48.15 requires a national bank through the use of automated collection photocopy comments at the OCC, 400
or Federal savings association to techniques or other forms of information 7th Street SW., Washington, DC 20219.
provide a retail forex customer with 30 technology; and For security reasons, the OCC requires
days prior notice of any assignment of (e) Estimates of capital or start-up that visitors make an appointment to
any position or transfer of any account costs and costs of operation, inspect comments. You may do so by
of the retail forex customer. It also maintenance, and purchase of services calling (202) 649–6700 or, for persons
requires a national bank or Federal to provide information. who are deaf or hard of hearing, TTY,
savings association to which retail forex Dated: October 13, 2016. (202) 649–5597. Upon arrival, visitors
accounts or positions are assigned or Karen Solomon, will be required to present valid
transferred to provide the affected Deputy Chief Counsel, Office of the
government-issued photo identification
customers with risk disclosure Comptroller of the Currency. and submit to security screening in
statements and forms of order to inspect and photocopy
[FR Doc. 2016–25391 Filed 10–19–16; 8:45 am]
acknowledgment and obtain the signed comments.
BILLING CODE 4810–33–P
acknowledgments within 60 days. All comments received, including
The customer dispute resolution attachments and other supporting
provisions in § 48.16 require certain materials, are part of the public record
DEPARTMENT OF THE TREASURY
endorsements, acknowledgments, and and subject to public disclosure. Do not
signatures. The section also requires Office of the Comptroller of the enclose any information in your
that a national bank or Federal savings Currency comment or supporting materials that
association, within 10 days after receipt you consider confidential or
of notice from the retail forex customer Agency Information Collection inappropriate for public disclosure.
that the customer intends to submit a Activities: Information Collection Additionally, please send a copy of
claim to arbitration, provide the Renewal; Submission for OMB Review; your comments by mail to: OCC Desk
customer with a list of persons qualified Reverse Mortgage Products: Guidance Officer, 1557–0246, U.S. Office of
in the dispute resolution. for Managing Compliance and Management and Budget, 725 17th
Reputation Risks Street NW., #10235, Washington, DC
Policies and Procedures; 20503 or by email to: oira submission@
Recordkeeping AGENCY: Office of the Comptroller of the omb.eop.gov.
Sections 48.7 and 48.13 require that a Currency (OCC), Treasury. FOR FURTHER INFORMATION CONTACT:
national bank or Federal savings ACTION: Notice and request for comment. Shaquita Merritt, OCC Clearance
association engaging in retail forex Officer, (202) 649–5490 or, for persons
SUMMARY: The OCC, as part of its
transactions keep full, complete, and who are deaf or hard of hearing, TTY,
continuing effort to reduce paperwork
systematic records and to establish and (202) 649–5597, Legislative and
and respondent burden, invites the
implement internal rules, procedures, Regulatory Activities Division, Office of
general public and other Federal
and controls. Section 48.7 also requires the Comptroller of the Currency, 400 7th
agencies to comment on the renewal of
that a national bank or Federal savings Street SW., Suite 3E–218, Mail Stop
an information collection, as required
association keep account, financial 9W–11, Washington, DC 20219.
by the Paperwork Reduction Act of 1995
ledger, transaction, and daily records, as SUPPLEMENTARY INFORMATION: The OCC
(PRA).
well as memorandum orders, post- An agency may not conduct or is proposing to extend OMB approval of
execution allocation of bunched orders, sponsor, and a respondent is not the following information collection:
records regarding its ratio of profitable required to respond to, an information Abstract: On December 16, 2009, the
accounts, possible violations of law, collection unless it displays a currently OCC, FDIC, FRB and NCUA sought
records for noncash margin, and valid Office of Management and Budget comment on the Guidance,1 which they
monthly statements and confirmations. (OMB) control number. issued on August 17, 2010.2 The
Section 48.9 requires policies and The OCC is soliciting comment Guidance focused on the need to
procedures for haircuts for noncash concerning renewal of its information provide adequate information to
margin collected under the rule’s collection titled, ‘‘Reverse Mortgage consumers about reverse mortgage
margin requirements and annual Products: Guidance for Managing products, to provide qualified
evaluations and modifications of the Compliance and Reputation Risks’’ independent counseling to consumers
haircuts. (Guidance). The OCC also is giving considering these products, and to avoid
Comments submitted in response to notice that it has sent the collection to potential conflicts of interest. The
this notice will be summarized and OMB for review. Guidance also addressed related
included in the request for OMB policies, procedures, internal controls,
DATES: Comments must be received by
approval. All comments will become a and third party risk management.
matter of public record. Comments are November 21, 2016. The information collection
invited on: ADDRESSES: Because paper mail in the requirements included implementation
(a) Whether the collection of Washington, DC area and at the OCC is of policies and procedures, training, and
information is necessary for the proper subject to delay, commenters are program maintenance. These are
performance of the functions of the encouraged to submit comments by outlined below:
OCC, including whether the information email, if possible. Comments may be • Institutions offering reverse
has practical utility; sent to: Legislative and Regulatory mortgages should have written policies
Activities Division, Office of the
mstockstill on DSK3G9T082PROD with NOTICES

(b) The accuracy of the OCC’s and procedures that prohibit the
estimate of the burden of the Comptroller of the Currency, Attention: practice of directing a consumer to a
information collection; 1557–0246, 400 7th Street SW., Suite particular counseling agency or
(c) Ways to enhance the quality, 3E–218, Mail Stop 9W–11, Washington, contacting a counselor on the
utility, and clarity of the information to DC 20219. In addition, comments may consumer’s behalf.
be collected; be sent by fax to (571) 465–4326 or by
(d) Ways to minimize the burden of electronic mail to prainfo@occ.treas.gov. 1 74 FR 66652.
the collection on respondents, including You may personally inspect and 2 75 FR 50801.

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Document Created: 2016-10-21 09:59:04
Document Modified: 2016-10-21 09:59:04

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice and request for comment.
Dates		Comments must be submitted on or before December 19, 2016.
Contact		Shaquita Merritt, OCC Clearance Officer, (202) 649-5490 or, for persons who are deaf or hard of hearing, TTY, (202) 649-5597, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 400 7th Street SW., Washington, DC 20219.
FR Citation		81 FR 72672

81 FR 72672 - Agency Information Collection Activities: Information Collection Renewal; Comment Request; Retail Foreign Exchange Transactions

DEPARTMENT OF THE TREASURYOffice of the Comptroller of the Currency

Federal Register Volume 81, Issue 203 (October 20, 2016)

DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency