[Federal Register Volume 60, Number 244 (Wednesday, December 20, 1995)]
[Notices]
[Pages 65656-65658]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30892]
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FEDERAL RESERVE SYSTEM
Agency Forms Under Review
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice.
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SUMMARY: The Board requests comment on the proposed one-time Check
Fraud
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Survey. This survey will help the Federal Reserve to fulfill the
Congressional mandate that the Board report to Congress on the
advisability of modifying the Expedited Funds Availability Act (EFAA)
to extend the maximum permissible hold period for local checks as a
means of decreasing losses related to check fraud. The Congress further
directed the Board to consider whether there is a pattern of
significant increases in losses related to check fraud at depository
institutions attributable to the provisions of the EFAA; to consider
whether an extension by one day of the period between the deposit of a
local check and the availability of funds for withdrawal would be
effective in reducing the volume of losses related to check fraud; and
to make recommendations for legislative actions. Data collected from
the survey will cover the period January 1, 1995, through December 31,
1995.
DATES: Comments must be submitted on or before February 20, 1996.
ADDRESSES: Comments, which should refer to OMB control number 7100-
0279, may be mailed to Mr. William W. Wiles, Secretary, Board of
Governors of the Federal Reserve System, 20th and C Streets, N.W.,
Washington, DC 20551. Comments may also be delivered to Room B-2222
between 8:45 a.m. and 5:15 p.m. weekdays, and to the guard station in
the Eccles Building courtyard on 20th Street N.W. (between Constitution
Avenue and C Street) at any time. Comments may be inspected in room MP-
500 of the Martin Building between 9:00 a.m. and 5:00 p.m. weekdays,
except as provided in section 12 CFR 261.8 of the Board's rules
regarding availability of information.
Comments may also be submitted to the OMB desk officer for the
Board: Milo Sunderhauf, Office of Information and Regulatory Affairs,
Office of Management and Budget, New Executive Office Building, Room
3208, Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT: A copy of the proposed survey and
instructions, the Paperwork Reduction Act Submission (OMB 83-I),
supporting statement, and other documents, may be requested from Mary
M. McLaughlin, Federal Reserve Board Clearance Officer (202/452-3829),
Division of Research and Statistics, Board of Governors of the Federal
Reserve System, Washington, DC 20551. For further information regarding
the purpose and content of the proposed survey contact Jack Walton,
Manager (202/452-2660), or Michelle Braun, Senior Financial Services
Analyst (202/452-2819), Check Payments section, Division of Reserve
Bank Operations and Payment Systems. For users of Telecommunications
Device for the Deaf (TDD), please contact Dorothea Thompson (202-452-
3544).
SUPPLEMENTARY INFORMATION:
I. Background
On June 15, 1984, the Office of Management and Budget (OMB)
delegated to the Board of Governors of the Federal Reserve System
(Board) its approval authority under the Paperwork Reduction Act of
1995, as per 5 CFR 1320.16, to approve and assign OMB control numbers
to collection of information requests and requirements conducted or
sponsored by the Board under conditions set forth in the Paperwork
Reduction Act (5 CFR 1320 Appendix A.1). The Federal Reserve may not
conduct or sponsor, and the respondent is not required to respond to,
an information collection that has been extended, revised, or
implemented on or after October 1, 1995, unless it displays a currently
valid OMB control number. Board-approved collections of information
will be incorporated into the official OMB inventory of currently
approved collections of information. A copy of the Paperwork Reduction
Act Submission (OMB 83-I) and supporting statement and the approved
collection of information instrument(s) will be placed into OMB's
public docket files. The survey, which is being handled under this
delegated authority, has received initial Board approval and is hereby
published for comment. At the end of the comment period, the proposed
survey, along with an analysis of comments and recommendations
received, will be submitted to the Board for final approval under OMB
delegated authority.
II. Proposal to Approve Under OMB Delegated Authority the Following
Report
Report title: Federal Reserve Check Fraud Survey.
Agency form number: FR 3080.
OMB control number: 7100-0279.
Frequency: one time.
Reporters: depository institutions.
Annual reporting hours: 14,976.
Estimated average hours per response: 9.
Number of respondents: 1,664.
Small businesses are affected: This information collection is
voluntary [Public Law 103-325, Title III, section 333] and is given
confidential treatment [5 U.S.C. Sec. 552(b)(4)].
III. Justification
The 1994 Community Development Banking Act states that the Board
shall ``conduct a study on the advisability of extending the 1-
business-day period specified in section 603(b)(1) of the Expedited
Funds Availability Act (EFAA), regarding availability of funds
deposited by local checks, to 2 business days.'' The report is to be
submitted to the Congress by September 1996. The Congress further
directed the Board to consider:
Whether there is a pattern of significant increases in
losses related to check fraud at depository institutions attributable
to the provisions of the EFAA;
Consider whether an extension by one day of the period
between the deposit of a local check and the availability of funds for
withdrawal would be effective in reducing the volume of losses related
to check fraud; and
Make recommendations for legislative action.
To respond to the request of the Congress, the Board proposes that
a survey of check fraud be conducted. The survey will gather
information about the relationship of all funds availability schedules
mandated in the EFAA to check-fraud losses as well as specific
information about the types of check fraud and the causes of check-
fraud losses at depository institutions.
The proposed survey not only addresses the effect of the mandatory
availability schedule for local checks on check-fraud losses, but it
also addresses next-day and nonlocal funds availability schedules. In
addition, it includes questions about the amount of losses by type of
check fraud, the amount of losses by type of check, and the volume of
checks cleared. Finally, preliminary research, which has consisted of
discussions with representatives of trade associations of depository
institutions and of other industries affected by check fraud and
reviews of the associations' studies, indicated that several other
areas should be addressed in the Board's study. Therefore, the proposed
survey includes questions about losses by age of account, losses that
could be attributed to organized or professional efforts, and the
resources that the respondent's institution expends annually to
prevent, detect, and prosecute check fraud. The data will enable the
Board to characterize the dynamics of check fraud for the Congress,
determine the significance of check-fraud losses and check-fraud
prevention, and to develop recommendations that may assist in reducing
check-fraud losses.
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IV. Request for Comments
The Board requests comments on all aspects of the survey. The Board
specifically requests comments on the following aspects:
A. Whether the proposed collection of information is necessary for
the proper performance of the Federal Reserve's functions, including
whether the information has practical utility;
B. Ways to enhance the quality, utility, and clarity of the
information to be collected;
C. The accuracy of the Federal Reserve's estimate of the burden of
the proposed information collection, including the validity of the
methodology and assumptions used; and
D. Ways to minimize the burden of the information collection on
respondents, such as using automated collection techniques or other
forms of information technology.
Board of Governors of the Federal Reserve System, December 15,
1995.
William W. Wiles,
Secretary of the Board.
[FR Doc. 95-30892 Filed 12-19-95; 8:45am]
Billing Code 6210-01-P
