FDIC Federal Register Citations

[Federal Register: March 4, 1997 (Volume 62, Number 42)]

[Notices]

[Page 9767]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr04mr97-50]

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FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL

Interagency Policy Statement Regarding Uniform Guideline on

Internal Control for Foreign Exchange in Commercial Banks

AGENCIES: Office of the Comptroller of the Currency (OCC), Department

of the Treasury; Board of Governors of the Federal Reserve System

(FRB); and Federal Deposit Insurance Corporation (FDIC).

ACTION: Withdrawal of guideline.

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SUMMARY: The OCC, FRB, and FDIC (``the Agencies'') are withdrawing

their joint guideline entitled: ``Interagency Policy Statement

Regarding Uniform Guideline on Internal Control for Foreign Exchange in

Commercial Banks,'' dated May 22, 1980 (45 FR 42370, June 24, 1980)

(``the Guideline'') because it is considered outdated and has been

superseded by other pronouncements from each of the agencies.

EFFECTIVE DATE: The removal of the Guideline is effective March 4,

1997.

FOR FURTHER INFORMATION CONTACT:

FRB: Michael Martinson, Assistant Director, (202)/452-3640), or Joe

Sciortino, Supervisory Financial Analyst, (202/452-2294), Board of

Governors of the Federal Reserve System, 20th and C Streets, N.W.,

Washington, D.C. 20551.

FDIC: Christie Sciacca, Assistant Director, (202/898-3638), Federal

Deposit Insurance Corporation, 550 17th St., N.W., Washington, D.C.

20429.

OCC: Leon Tarrant, Manager, (202/874-4730), Office of the Comptroller

of the Currency, 250 E Street, S.W., Washington D.C. 20219.

SUPPLEMENTARY INFORMATION: The policy set forth in the Guideline was

developed to provide uniformity among the Agencies in establishing

minimum standards for documentation, accounting, and auditing for

foreign exchange operations in U.S. commercial banks. The Guideline was

not intended to be all encompassing as to policies and procedures

expected to be found in the most active market participants. Rather, it

called for each bank to develop a system of internal control

commensurate with the risks to which it is exposed.

The Guideline has become outdated in view of numerous changes that

have subsequently taken place, including: the scope and depth of

foreign exchange trading activities in banks, new product developments,

significant improvements in automated trading systems, and the

management of the business along product lines. These conditions

prompted each agency to issue subsequent pronouncements and updated

examination and/or policy procedures for U.S. banks as well as for

foreign banks doing business in the United States.

The Agencies' Action

The Agencies hereby withdraw the Guideline.

Dated: February 27, 1997.

Joe M. Cleaver,

Executive Secretary, Federal Financial Institutions Examination

Council.

[FR Doc. 97-5286 Filed 3-3-97; 8:45 am]

BILLING CODE 6210-01-P