[Federal Register Volume 60, Number 37 (Friday, February 24, 1995)]
[Rules and Regulations]
[Pages 10306-10307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4547]
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FEDERAL RESERVE SYSTEM
12 CFR Part 265
[Docket No. R-0871]
Rules Regarding Delegation of Authority
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
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SUMMARY: This rule delegates to the General Counsel of the Board of
Governors of the Federal Reserve System (Board) the authority to
approve requests for assistance from, and to share information with,
foreign banking authorities pursuant to the Federal Deposit Insurance
Act (FDI Act). This delegation of authority is intended to aid in the
expeditious processing of requests for assistance from foreign banking
authorities.
EFFECTIVE DATE: February 17, 1995.
FOR FURTHER INFORMATION CONTACT: Paul A. Vogel, Attorney (202/452-
3428), Legal Division, Board of Governors of the Federal Reserve
System. For the hearing impaired only, Telecommunications Device for
the Deaf (TDD), contact Dorthea Thompson (202/452-3544), Board of
Governors of the Federal Reserve System, 20th & C Street, NW.,
Washington, DC 20551.
SUPPLEMENTARY INFORMATION: Section 8(v) of the FDI Act (12 U.S.C.
1818(v)) permits the Board to provide assistance to a foreign banking
authority if such authority states that it is conducting an
investigation to determine whether any person has violated, is
violating, or is about to violate any banking or currency transaction
law or regulation administered or enforced by the requesting authority.
Section 8(v) of the FDI Act permits the Board, in its discretion, to
investigate and to collect and disclose information to a foreign
banking authority upon the request of such authority. Any such
investigation shall comply with the laws of the United States and the
policies and procedures adopted by the Board. In deciding whether to
provide assistance to the foreign banking authority, the FDI Act
requires the Board to consider (1) whether the requesting authority has
agreed to provide reciprocal assistance to the Board and to the other
Federal banking agencies and (2) whether compliance with the request
would prejudice the public interest of the United States.
The Board has delegated to its General Counsel the authority to
approve requests for assistance from foreign banking authorities
pursuant to section 8(v) of the FDI Act. This delegation of authority
is consistent with previous Board action with respect to cooperation
with foreign supervisors. On January 28, 1993, (58 FR 6348) the Board
issued a final rule implementing portions of the Foreign Bank
Supervision Enhancement Act of 1991 (FBSEA). The final rule included a
provision delegating to the General Counsel the authority to make the
determinations necessary to disclose information to foreign bank
supervisory authorities pursuant to the FBSEA. Section 206 of the FBSEA
(12 U.S.C. 3109) permits the Board to share supervisory information
with its foreign counterparts after, among other things, obtaining an
agreement to maintain the confidentiality of the information when
necessary under applicable law. Because the cooperation authorities
under the FDI Act and the FBSEA are overlapping, the Board has
delegated to the General Counsel the authority to approve requests for
assistance from foreign banking authorities pursuant to section 8(v) of
the FDI Act.
The provisions of the Administrative Procedures Act (APA) (5 U.S.C.
553) relating to notice, public participation, and deferred effective
date have not been followed in connection with the adoption of this
amendment because the change to be effected is procedural in nature and
does not constitute a substantive rule subject to the requirements of
that section. The APA grants a specific exemption from its requirements
relating to notice and public participation in this instance (12 U.S.C.
553(b)(3)(A)), and good cause exists to find that the nature of this
amendment makes a notice and public comment procedure unnecessary.
Regulatory Flexibility Act Analysis
Pursuant to the Regulatory Flexibility Act (5 U.S.C. 601-612), the
Board hereby certifies that this rule will not have a significant
economic impact on a substantial number of small entities.
List of Subjects in 12 CFR Part 265
Authority delegations (Government agencies), Banks banking, Federal
Reserve System.
For the reasons set out in the preamble, the Board is amending 12
CFR Part 265 as set forth below: [[Page 10307]]
PART 265--RULES REGARDING DELEGATION OF AUTHORITY
1. The authority citation for Part 265 continues to read as
follows:
Authority: 12 U.S.C. 248 (i) and (k).
2. Section 265.6 is amended by revising paragraph (b)(2) and by
adding paragraph (b)(3) to read as follows:
Sec. 265.6 Functions delegated to General Counsel.
* * * * *
(b) * * *
(2) Disclosure to foreign authorities. To make the determinations
required for disclosure of information to a foreign bank regulatory or
supervisory authority, and to obtain, to the extent necessary, the
agreement of such authority to maintain the confidentiality of such
information to the extent possible under applicable law.
(3) Assistance to foreign authorities. To approve requests for
assistance from any foreign bank regulatory or supervisory authority
that is conducting an investigation regarding violations of any law or
regulation relating to banking matters or currency transactions
administered or enforced by such authority, and to make the
determinations required for any investigation or collection of
information and evidence pertinent to such request. In deciding whether
to approve requests for assistance under this paragraph, the General
Counsel shall consider:
(i) Whether the requesting authority has agreed to provide
reciprocal assistance with respect to banking matters within the
jurisdiction of any appropriate Federal banking agency;
(ii) Whether compliance with the request would prejudice the public
interest of the United States; and
(iii) Whether the request is consistent with the requirement that
the Board conduct any such investigation in compliance with the laws of
the United States and the policies and procedures of the Board.
* * * * *
By order of the Board of Governors of the Federal Reserve
System, February 17, 1995.
William W. Wiles,
Secretary of the Board.
[FR Doc. 95-4547 Filed 2-23-95; 8:45 am]
BILLING CODE 6210-01-P
