82_FR_9504 82 FR 9481 - Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Retail Foreign Exchange Transactions

82 FR 9481 - Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Retail Foreign Exchange Transactions

DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency

Federal Register Volume 82, Issue 23 (February 6, 2017)

Page Range9481-9482
FR Document2017-02358

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.'' The OCC also is giving notice that is has sent the collection to OMB for review.

Federal Register, Volume 82 Issue 23 (Monday, February 6, 2017) 
[Federal Register Volume 82, Number 23 (Monday, February 6, 2017)]
[Notices]
[Pages 9481-9482]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02358]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Submission for OMB Review; 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.'' The OCC 
also is giving notice that is has sent the collection to OMB for 
review.

DATES: Comments must be submitted on or before March 8, 2017.

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 prainfo@occ.treas.gov. 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.
    Additionally, please send a copy of your comments by mail to: OCC 
Desk Officer, 1557-0250, U.S. Office of Management and Budget, 725 17th 
Street NW., #10235, Washington, DC 20503 or by email to: oira 
submission@omb.eop.gov.

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.
    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

[[Page 9482]]

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, 
Sec.  48.6 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.
    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.
    The OCC issued a notice for 60 days of comment regarding this 
collection on October 20, 2016, 81 FR 72672. 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 
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: January 26, 2017.
Karen Solomon,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2017-02358 Filed 2-3-17; 8:45 am]
 BILLING CODE 4810-33-P

Federal Register / Vol. 82, No. 23 / Monday, February 6, 2017 / Notices 9481 (FCRA),2 generally prohibits a person (e) Estimates of capital or start-up who are deaf or hard of hearing, TTY, from using certain information received costs and costs of operation, (202) 649–5597. Upon arrival, visitors from an affiliate to make a solicitation maintenance, and purchase of services will be required to present valid for marketing purposes to the consumer, to provide information. government-issued photo identification unless the consumer is given notice and Dated: January 26, 2017. and submit to a security screening in an opportunity and simple method to Karen Solomon, order to inspect and photocopy opt out of such solicitations. comments. Deputy Chief Counsel, Office of the Twelve CFR 1022.20–1022.27 requires Comptroller of the Currency. All comments received, including financial institutions to issue notices attachments and other supporting [FR Doc. 2017–02357 Filed 2–3–17; 8:45 am] informing consumers about their rights materials, are part of the public record BILLING CODE 4810–33–P under section 214 of the FACT Act. and subject to public disclosure. Do not Consumers use the notices to decide if include any information in your they want to receive solicitations for comment or supporting materials that DEPARTMENT OF THE TREASURY marketing purposes or opt out. you consider confidential or Financial institutions use the Office of the Comptroller of the inappropriate for public disclosure. consumers’ opt-out responses to Currency Additionally, please send a copy of determine the permissibility of making your comments by mail to: OCC Desk a solicitation for marketing purposes. Agency Information Collection Officer, 1557–0250, U.S. Office of If a person receives certain consumer Activities: Information Collection Management and Budget, 725 17th eligibility information from an affiliate, Renewal; Submission for OMB Review; Street NW., #10235, Washington, DC the person may not use that information Retail Foreign Exchange Transactions 20503 or by email to: oira submission@ to make solicitations to the consumer omb.eop.gov. about its products or services, unless the AGENCY: Office of the Comptroller of the Currency (OCC), Treasury. FOR FURTHER INFORMATION CONTACT: consumer is given notice and a simple Shaquita Merritt, OCC Clearance method to opt out of such use of the ACTION: Notice and request for comment. Officer, (202) 649–5490 or, for persons information, and the consumer does not who are deaf or hard of hearing, TTY, SUMMARY: The OCC, as part of its opt out. Exceptions include, a person (202) 649–5597, Legislative and continuing effort to reduce paperwork using eligibility information: (1) To Regulatory Activities Division, Office of and respondent burden, invites the make solicitations to a consumer with the Comptroller of the Currency, 400 7th general public and other Federal whom the person has a pre-existing Street SW., Washington, DC 20219. agencies to take this opportunity to business relationship; (2) to perform comment on a continuing information SUPPLEMENTARY INFORMATION: Under the services for another affiliate subject to collection as required by the Paperwork PRA (44 U.S.C. 3501–3520), Federal certain conditions; (3) in response to a Reduction Act of 1995 (PRA). agencies must obtain approval from communication initiated by the In accordance with the requirements consumer; or (4) to make a solicitation OMB for each collection of information of the PRA, the OCC may not conduct that they conduct or sponsor. that has been authorized or requested by or sponsor, and the respondent is not the consumer. A consumer’s affiliate ‘‘Collection of information’’ is defined required to respond to, an information in 44 U.S.C. 3502(3) and 5 CFR marketing opt-out election must be collection unless it displays a currently effective for a period of at least five 1320.3(c) to include agency requests or valid Office of Management and Budget requirements that members of the public years. Upon expiration of the opt-out (OMB) control number. period, the consumer must be given a submit reports, keep records, or provide The OCC is soliciting comment on the information to a third party. renewal notice and an opportunity to renewal of its information collection renew the opt-out before information Title: Retail Foreign Exchange titled ‘‘Retail Foreign Exchange Transactions. received from an affiliate may be used Transactions.’’ The OCC also is giving OMB Control No.: 1557–0250. to make solicitations to the consumer. notice that is has sent the collection to Comments: On October 25, 2016, the Type of Review: Regular. OMB for review. Frequency of Response: On occasion. OCC issued a 60-day notice soliciting DATES: Comments must be submitted on Affected Public: Businesses or other comment on the information collection, or before March 8, 2017. for-profit. 81 FR 73473. No comments were Estimated Number of Respondents: received. Comments continue to be ADDRESSES: Because paper mail in the Washington, DC area and at the OCC is 15. invited on: Total Annual Burden: 22,418 hours. (a) Whether the collection of subject to delay, commenters are information is necessary for the proper encouraged to submit comments by Description performance of the functions of the email, if possible. Comments may be sent to: Legislative and Regulatory Background OCC, including whether the information has practical utility; Activities Division, Office of the The OCC’s retail forex rule (12 CFR (b) The accuracy of the OCC’s Comptroller of the Currency, Attention: part 48) allows national banks and estimate of the information collection 1557–0250, 400 7th Street SW., suite Federal savings associations to offer burden; 3E–218, mail stop 9W–11, Washington, retail foreign exchange transactions to (c) Ways to enhance the quality, DC 20219. In addition, comments may its customers. In order to engage in utility, and clarity of the information to be sent by fax to (571) 465–4326 or by these transactions, institutions must electronic mail to prainfo@occ.treas.gov. sradovich on DSK3GMQ082PROD with NOTICES be collected; comply with various reporting, (d) Ways to minimize the burden of You may personally inspect and disclosure, and recordkeeping the collection on respondents, including photocopy comments at the OCC, 400 requirements included in that rule. through the use of automated collection 7th Street SW., Washington, DC 20219. techniques or other forms of information For security reasons, the OCC requires Reporting Requirements technology; and that visitors make an appointment to The reporting requirements in § 48.4 inspect comments. You may do so by state that, prior to initiating a retail 2 15 U.S.C. 1681 et seq. calling (202) 649–6700 or, for persons forex business, a national bank or VerDate Sep<11>2014 16:03 Feb 03, 2017 Jkt 241001 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 E:\FR\FM\06FEN1.SGM 06FEN1

9482 Federal Register / Vol. 82, No. 23 / Monday, February 6, 2017 / Notices Federal savings association must Section 48.15 requires a national bank techniques or other forms of information provide the OCC with prior notice and or Federal savings association to technology; and obtain a written supervisory no- provide a retail forex customer with 30 (e) Estimates of capital or start-up objection letter. In order to obtain a days prior notice of any assignment of costs and costs of operation, supervisory no-objection letter, a any position or transfer of any account maintenance, and purchase of services national bank or Federal savings of the retail forex customer. It also to provide information. association must have written policies, requires a national bank or Federal Dated: January 26, 2017. procedures, and risk measurement and savings association to which retail forex Karen Solomon, management systems and controls in accounts or positions are assigned or Deputy Chief Counsel, Office of the place to ensure that retail forex transferred to provide the affected Comptroller of the Currency. transactions are conducted in a safe and customers with risk disclosure [FR Doc. 2017–02358 Filed 2–3–17; 8:45 am] sound manner. The national bank or statements and forms of BILLING CODE 4810–33–P Federal savings association also must acknowledgment and obtain the signed provide other information required by acknowledgments within 60 days. the OCC, such as documentation of The customer dispute resolution provisions in § 48.16 require certain DEPARTMENT OF THE TREASURY customer due diligence, new product approvals, and haircuts applied to endorsements, acknowledgments, and Internal Revenue Service noncash margins. signatures. The section also requires that a national bank or Federal savings Proposed Collection; Comment Disclosure Requirements association, within 10 days after receipt Request for Form W–11 Under § 48.5, a national bank or of notice from the retail forex customer Federal savings association must that the customer intends to submit a AGENCY: Internal Revenue Service (IRS), promptly provide the customer with a claim to arbitration, provide the Treasury. statement reflecting the financial result customer with a list of persons qualified ACTION: Notice and request for of the transactions and the name of the in the dispute resolution. comments. introducing broker to the account. The Policies and Procedures; SUMMARY: The Department of the customer must provide specific written Recordkeeping Treasury, as part of its continuing effort instructions on how the offsetting Sections 48.7 and 48.13 require that a to reduce paperwork and respondent transaction should be applied. national bank or Federal savings burden, invites the general public and Section 48.6 requires that a national other Federal agencies to take this association engaging in retail forex bank or Federal savings association opportunity to comment on proposed transactions keep full, complete, and furnish a retail forex customer with a and/or continuing information systematic records and to establish and written disclosure before opening an collections, as required by the implement internal rules, procedures, account through which the customer Paperwork Reduction Act of 1995, and controls. Section 48.7 also requires will engage in retail forex transactions. Public Law 104–13 (44 U.S.C. that a national bank or Federal savings It further requires a national bank or 3506(c)(2)(A)). Currently, the IRS is association keep account, financial Federal savings association to secure an soliciting comments concerning Form ledger, transaction, and daily records, as acknowledgment from the customer that W–11, Hiring Incentives to Restore well as memorandum orders, post- the disclosure was received and Employment (HIRE) Act Employee execution allocation of bunched orders, understood. Finally, § 48.6 requires the Affidavit. records regarding its ratio of profitable disclosure by a national bank or Federal accounts, possible violations of law, DATES: Written comments should be savings association of its fees and other records for noncash margin, and received on or before April 7, 2017 to charges and its profitable accounts ratio. monthly statements and confirmations. be assured of consideration. Section 48.10 requires a national bank Section 48.9 requires policies and ADDRESSES: Direct all written comments or Federal savings association to issue procedures for haircuts for noncash to Tuawana Pinkston, Internal Revenue monthly statements to each retail forex margin collected under the rule’s Service, Room 6526, 1111 Constitution customer and to send confirmation margin requirements and annual Avenue NW., Washington, DC 20224. statements following transactions. evaluations and modifications of the Section 48.13(c) prohibits a national FOR FURTHER INFORMATION CONTACT: haircuts. bank or Federal savings association The OCC issued a notice for 60 days Requests for additional information or engaging in retail forex transactions of comment regarding this collection on copies of notice should be directed to from knowingly handling the account of October 20, 2016, 81 FR 72672. No Sara Covington, at Internal Revenue any related person of another retail comments were received. Comments Service, Room 6526, 1111 Constitution forex counterparty unless it receives continue to be invited on: Avenue NW., Washington, DC 20224, or proper written authorization, promptly (a) Whether the collection of through the internet, at prepares a written record of the order, information is necessary for the proper Sara.L.Covington@irs.gov. and transmits to the counterparty copies performance of the functions of the SUPPLEMENTARY INFORMATION: all statements and written records. OCC, including whether the information Title: Hiring Incentives to Restore Section 48.13(d) prohibits a related has practical utility; Employment (HIRE) Act Employee person of a national bank or Federal (b) The accuracy of the OCC’s Affidavit. savings association engaging in forex sradovich on DSK3GMQ082PROD with NOTICES estimate of the burden of the OMB Number: 1545–2173. transactions from having an account information collection; Notice Number: Form W–11. with another retail forex counterparty (c) Ways to enhance the quality, Abstract: This form was created in unless it receives proper written utility, and clarity of the information to response to the Hiring Incentives to authorization and copies of all be collected; Restore Employment (HIRE) Act, which statements and written records for such (d) Ways to minimize the burden of was signed on March 18, 2010. The form accounts are transmitted to the the collection on respondents, including was developed as a template for the counterparty. through the use of automated collection convenience of employers who must VerDate Sep<11>2014 16:03 Feb 03, 2017 Jkt 241001 PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 E:\FR\FM\06FEN1.SGM 06FEN1


Document Created: 2017-02-04 00:25:05
Document Modified: 2017-02-04 00:25:05
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice and request for comment.
DatesComments must be submitted on or before March 8, 2017.
ContactShaquita 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 Citation82 FR 9481 
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