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(``the Guideline'') because it is considered outdated and has been
superseded by other pronouncements from each of the agencies.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,
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.
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The Guideline has become outdated in view of numerous changes that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
[FR Doc. 97-5286 Filed 3-3-97; 8:45 am]
BILLING CODE 6210-01-P