DEPARTMENT OF THE TREASURY
Statement of RegulatoryPriorities
The primary mission of the Department of the Treasury is to maintain a strong economy and create economic and job opportunities by promoting the conditions that enable economic growth and stability at home and abroad, strengthen national security by combatting threats and protecting the integrity of the financial system, and manage the U.S. Government's finances and resources effectively.
Consistent with this mission, regulations of the Department and its constituent bureaus are promulgated to interpret and implement the laws as enacted by Congress and signed by the President. It is the policy of the Department to comply with applicable requirements to issue a notice of proposed rulemaking and carefully consider public comments before adopting a final rule. Also, the Department invites interested parties to submit views on rulemaking projects while a proposed rule is being developed.
To the extent permitted by law, it is the policy of the Department to adhere to the regulatory philosophy and principles set forth in Executive Orders 12866, 13563, 13609, and 13771 and to develop regulations that maximize aggregate net benefits to society while minimizing the economic and paperwork burdens imposed on persons and businesses subject to those regulations.
I. Alcohol and Tobacco Tax and Trade Bureau
The Alcohol and Tobacco Tax and Trade Bureau (TTB) issues regulations to implement and enforce Federal laws relating to alcohol, tobacco, firearms, and ammunition excise taxes and certain non-tax laws relating to alcohol. TTB's mission and regulations are designed to:
1) Collect the taxes on alcohol, tobacco products, firearms, and ammunition;
2) Protect the consumer by ensuring the integrity of alcohol products; and
3) Prevent unfair and unlawful market activity for alcohol and tobacco products.
In FY 2019, TTB will continue its multi-year Regulations Modernization effort by prioritizing projects that reduce regulatory burdens, provide greater industry flexibility, and streamline the regulatory system, consistent with Executive Orders 13771 and 13777. TTB rulemaking priorities also include proposing regulatory changes in response to petitions from industry members and other interested parties, and requesting comments on ways TTB may further reduce burden and support a level playing field for the regulated industry. Specifically, during the fiscal year, TTB plans to publish a deregulatory final rule, following a notice published in FY 2017, which reduces the number of reports submitted by certain regulated industry members. TTB also plans to publish for public comment proposed deregulatory changes in connection with permit applications and to expand industry flexibility with regard to alcohol beverage container sizes (standards of fill). Priority projects also include continuing the rulemaking issued in FY 2017 in response to industry member petitions to authorize new wine treating materials and processes, new grape varietal names for use on labels of wine, and new American Viticultural Areas (AVAs). None of the TTB rulemaking documents issued in FY 2019 are expected to be "regulatory actions" under Executive Order 13771 and subsequent OMB guidance.
This fiscal year TTB plans to give priority to the following deregulatory and regulatory measures:
Consistent with EO 13771 and 13777, in FY 2017, TTB engaged in a review of its regulations to identify any regulatory requirements that could potentially be eliminated, modified, or streamlined in order to reduce burdens on industry. In FY 2018, TTB worked to remove requirements where possible without the need for rulemaking. This included the elimination of certain information collected on TTB permit-related forms. In FY 2019, TTB intends to propose amending its regulations to eliminate or streamline various additional requirements for application or qualification of distilled spirits plants, wineries, breweries, and manufacturers of tobacco products or processed tobacco. In addition, through these regulatory amendments, TTB intends to address a number of comments it received from the interested public, including industry members, through the Treasury Department's Request for Information on deregulatory ideas (Docket No. TREAS-DO-2017-0012, published in the Federal Register on June 14, 2017).
In these two notices, TTB will address petitions requesting that it amend regulations governing wine and distilled spirits containers to provide for additional authorized "standards of fill." (The term "standard of fill" generally relates to the size of containers, although the specific regulatory meaning is the authorized amount of liquid in the container, rather than the size or capacity of the container itself.) If implemented, this proposal would provide industry members greater flexibility in producing and sourcing containers and meeting consumer demand. This deregulatory action would also eliminate restrictions that inhibit competition and the movement of goods in domestic and international commerce.
On December 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes Act (PATH Act), which is Division Q of the Consolidated Appropriations Act, 2016. The PATH Act contains changes to certain statutory provisions that TTB administers in the Internal Revenue Code regarding excise tax return due dates and bond requirements for certain smaller excise taxpayers. These amendments took effect beginning in January 2017, and TTB published a temporary rule amending its regulations to implement these provisions. At the same time, TTB published in the Federal Register (82 FR 780) a notice of proposed rulemaking requesting comments on the amendments made in the temporary rule and proposing further amendments to the regulations governing reporting requirements for distilled spirits plants (DSPs) and breweries to reduce the regulatory burden on industry members who pay taxes and file tax returns annually or quarterly. Under the proposal, those industry members would also submit reports annually or quarterly, aligned with their filing of the tax return, rather than monthly as generally provided under current regulations. To be eligible for annual or quarterly filing, the DSP or brewery must reasonably expect to be liable for not more than $1,000 in excise taxes (in the case of annual filing) or $50,000 in excise taxes (in the case of quarterly filing) for the calendar year and must have been liable for not more than these respective amounts in the preceding calendar year. The reduced reporting frequency will reduce regulatory burdens on these smaller industry members.
The PATH Act also contained changes to the Internal Revenue Code amending the definition of
hard cider for excise tax classification purposes. The amended definition broadened the range of products to which the hard cider tax rate applies. In FY 2017, TTB published a temporary rule amending its regulations to implement these provisions. At the same time, TTB published in the Federal Register (82 FR 7753) a notice of proposed rulemaking requesting comments on the amendments made in the temporary rule, including labeling requirements to identify products to which the hard cider tax rate applies. In 2018, TTB reopened the comment period for the notice, as requested by industry members and, after consideration of the comments, intends to issue a final rule in FY 2019.
The Federal Alcohol Administration Act requires that alcohol beverages introduced in interstate commerce have a label issued and approved under regulations prescribed by the Secretary of the Treasury. In accordance with the mandate of Executive Order 13563 of January 18, 2011, regarding improving regulation and regulatory review, TTB conducted an analysis of its alcohol beverage labeling regulations to identify any that might be outmoded, ineffective, insufficient, or excessively burdensome, and to modify, streamline, expand, or repeal them in accordance with that analysis. These regulations were also reviewed to assess their applicability to the modern alcohol beverage marketplace. As a result of this review, and further review in FY 2017 and FY 2018 consistent with Executive Orders 13771 and 13777 regarding reducing regulatory burdens, in FY 2019, TTB plans to propose revisions to consolidate and modernize the regulations concerning the labeling requirements for wine, distilled spirits, and malt beverages. TTB anticipates that these regulatory changes will assist industry in voluntary compliance, decrease industry burden, and result in the regulated industries being able to bring products to market without undue delay. TTB also anticipates that this notice for public comment will give industry members another opportunity to provide comments and suggestions on any additional deregulatory measures in these areas.
In FY 2019, TTB intends to bring to completion a number of rulemaking projects published as notices of proposed rulemaking in FY 2017 in response to industry member petitions to amend the TTB regulations and reopened for public comment in FY 2018:
In FY 2017, TTB proposed to amend its regulations pertaining to the production of wine to authorize additional treatments that may be applied to wine and to juice from which wine is made. These proposed amendments were made in response to requests from wine industry members to authorize certain wine treating materials and processes not currently authorized by TTB regulations. Although TTB may administratively approve such treatments, rulemaking facilitates the acceptance of exported wine made using those treatments in foreign markets. In FY 2018 TTB reopened the comment period for the notice, as requested by industry members and, after consideration of the comments, intends to issue a final rule in FY 2019.
In FY 2017, TTB proposed to amend its wine labeling regulations by adding a number of new names to the list of grape variety names approved for use in designating American wines. The proposed deregulatory amendments would allow wine bottlers to use these additional approved grape variety names on wine labels and in wine advertisements. In 2018, TTB reopened the comment period for the notice, as requested by industry members and, after consideration of the comments, intends to issue a final rule in FY 2019.
II. Customs Revenue Functions
The Homeland Security Act of 2002 (the Act) provides that, although many functions of the former United States Customs Service were transferred to the Department of Homeland Security, the Secretary of the Treasury retains sole legal authority over customs revenue functions. The Act also authorizes the Secretary of the Treasury to delegate any of the retained authority over customs revenue functions to the Secretary of Homeland Security. By Treasury Department Order No. 100-16, the Secretary of the Treasury delegated to the Secretary of Homeland Security authority to prescribe regulations pertaining to the customs revenue functions subject to certain exceptions, but further provided that the Secretary of the Treasury retained the sole authority to approve such regulations.
During fiscal year 2019, CBP and Treasury plan to give priority to regulatory matters involving the customs revenue functions which streamline CBP procedures, protect the public, or are required by either statute or Executive Order. The examples of these efforts described below are exempt from Executive Order 13771 as they are non-significant rules as defined by Executive Order. Examples of these efforts are described below.
Treasury and CBP plan to finalize interim regulations (81 FR 56477) which amended CBP regulations implementing section 421 of the Trade Facilitation and Trade Enforcement Act of 2015, which set forth procedures to investigate claims of evasion of antidumping and countervailing duty orders.
Treasury and CBP plan to amend CBP regulations to implement changes to the drawback law contained in section 906 of the Trade Facilitation and Trade Enforcement Act of 2015. These proposed changes to the regulations will liberalize the standard for substituting merchandise, simplify recordkeeping requirements, extend and standardize timelines for filing drawback claims, and require the electronic filing of drawback claims.
Treasury and CBP plan to propose amendments to the CBP regulations pertaining to importations of merchandise that violate or are suspected of violating the copyright laws, including the Digital Millennium Copyright Act (DMCA), in accordance with Title III of the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) and Executive Order 13785, "Establishing Enhanced Collection and Enforcement of Anti-dumping and Countervailing Duties and Violations of Trade and Customs Laws." The proposed amendments are intended to enhance CBP's enforcement efforts against increasingly sophisticated piratical goods, clarify the definition of piracy, simplify the detention process relative to goods suspected of violating the copyright laws, and prescribe new regulations enforcing the DMCA.
Treasury and CBP plans to publish a proposal to amend its regulations with respect to administrative rulings related to the importation of articles in light of exclusion orders issued by the United States International Trade Commission ("Commission") under section 337 of the Tariff Act of 1930, as amended. The proposed amendments seek to promote the speed, accuracy, and transparency of such rulings through the creation of an inter partes proceeding to replace the current ex parte process.
III. Financial Crimes Enforcement Network
As administrator of the Bank Secrecy Act (BSA), the Financial Crimes Enforcement Network (FinCEN) is responsible for developing and implementing regulations that are the core of the Department's anti-money laundering (AML) and counter-terrorism financing efforts. FinCEN's responsibilities and objectives are linked to, and flow from, that role. In fulfilling this role, FinCEN seeks to enhance U.S. national security by making the financial system increasingly resistant to abuse by money launderers, terrorists and their financial supporters, and other perpetrators of crime.
The Secretary of the Treasury, through FinCEN, is authorized by the BSA to issue regulations requiring financial institutions to file reports and keep records that are determined to have a high degree of usefulness in criminal, tax, or regulatory matters or in the conduct of intelligence or counter-intelligence activities to protect against international terrorism. The BSA also authorizes requiring designated financial institutions to establish AML programs and compliance procedures. To implement and realize its mission, FinCEN has established regulatory objectives and priorities to safeguard the financial system from the abuses of financial crime, including terrorist financing, money laundering, and other illicit activity.
These objectives and priorities include: (1) issuing, interpreting, and enforcing compliance with regulations implementing the BSA; (2) supporting, working with, and as appropriate, overseeing compliance examination functions delegated to other Federal regulators; (3) managing the collection, processing, storage, and dissemination of data related to the BSA; (4) maintaining a government-wide access service to that same data and for network users with overlapping interests; (5) conducting analysis in support of policymakers, law enforcement, regulatory and intelligence agencies, and the financial sector; and (6) coordinating with and collaborating on anti-terrorism and AML initiatives with domestic law enforcement and intelligence agencies, as well as foreign financial intelligence units.
FinCEN's regulatory priorities for fiscal year 2018 include:
On March 10, 2016, FinCEN issued a Notice of Proposed Rulemaking to address requests from filers for clarification of certain requirements regarding the Report of Foreign Bank and Financial Accounts, including requirements with respect to employees who have signature authority over, but no financial interest in, the foreign financial accounts of their employers. FinCEN is considering public comments and preparing a Final Rule.
On April 4, 2016, FinCEN issued a Notice of Proposed Rulemaking proposing amendments to the regulatory definitions of broker or dealer in securities under the BSA's regulations. The proposed changes would expand the current scope of the definitions to include funding portals and would require them to implement policies and procedures reasonably designed to achieve compliance with all of the BSA's requirements that are currently applicable to brokers or dealers in securities. FinCEN is considering public comments and preparing a Final Rule.
On August 25, 2016, FinCEN issued a Notice of Proposed Rulemaking to remove the AML program exemption for banks that lack a Federal functional regulator, including, but not limited to, private banks, non-federally insured credit unions, and certain trust companies. The proposed rule would prescribe minimum standards for AML programs and would ensure that all banks, regardless of whether they are subject to Federal regulation and oversight, are required to establish and implement AML programs. FinCEN is considering public comments and preparing a Final Rule.
On September 1, 2015, FinCEN published in the Federal Register a Notice of Proposed Rulemaking to solicit public comment on proposed rules under the BSA that would prescribe minimum standards for anti-money laundering programs to be established by certain investment advisers and to require such investment advisers to report suspicious activity to FinCEN. FinCEN is considering those comments and preparing a Final Rule.
FinCEN intends to issue an ANPRM to initiate a rulemaking that would establish BSA requirements for "persons involved in real estate closings and settlements," 31 U.S.C. 5312(a)(2)(U). The new rules may cover various types of businesses and professions involved in real estate transactions, including real estate agents and brokers, settlement attorneys, and title companies. The data from a series of geographical targeting orders issued by FinCEN is being evaluated to support this rulemaking to address money laundering through real estate transactions, especially acquisitions made via currency transmittals. Real estate transactions involving mortgages are already covered by BSA rules for banks and FinCEN rules for residential mortgage lenders and originators.
FinCEN is considering issuing a Notice of Proposed Rulemaking amending the registration requirements for money services businesses.
FinCEN is considering requiring certain depository institutions and money services businesses (MSBs) to affirmatively provide records to FinCEN of certain cross-border electronic transmittals of funds (CBETF). Current regulations already require that these financial institutions maintain and make available, but not affirmatively report, essentially the same CBETF information. FinCEN issued this proposal to meet the requirements of the Intelligence Reform and Terrorism Prevention Act of 2004 (IRTPA).
FinCEN will research, obtain, and analyze relevant data to validate the need for changes aimed at updating and improving the CMIR and ancillary reporting requirements. Possible areas of study to be examined could include current trends in cash transportation across international borders, transparency levels of physical transportation of currency, the feasibility of harmonizing data fields with bordering countries, and information derived from FinCEN's experience with Geographic Targeting Orders.
FinCEN also will continue to issue proposed and final rules pursuant to section 311 of the USA PATRIOT Act, as appropriate. Finally, FinCEN expects that it may propose various technical and other regulatory amendments in conjunction with ongoing efforts with respect to a comprehensive review of existing regulations to enhance regulatory efficiency.
VI. Internal Revenue Service
During fiscal year 2019, the IRS and Treasury's Office of Tax Policy have the following regulatory priorities. The first priority is to provide guidance regarding initial implementation of key provisions of the Tax Cuts and Jobs Act (TCJA), Public Law 115-97. Initial implementation priorities include:
In addition, the IRS and Treasury's Office of Tax Policy will continue to pursue the actions recommended in the Second Report pursuant to Executive Order 13789 to eliminate, or in other cases reduce, the burdens imposed on taxpayers by eight regulations that the Treasury has identified for review under Executive Order 13789. The remaining deregulatory actions include:
1. Finalize amendment of regulations under section 7602 regarding the participation of attorneys described in section 6103(n) in a summons interview. Proposed amendments were published on March 28, 2018.
2. Finalize removal of temporary regulations under section 707 concerning treatment of liabilities for disguised sale purposes. Proposed regulations that proposed the removal of the temporary regulations under section 707 and the reinstatement of the prior section 707 regulations were published on June 19, 2018.
3. Proposed removal of documentation regulations under section 385 and review of other regulations under section 385. A notice delaying the application of the documentation regulations was published on August 14, 2017.
4. Proposed modification of regulations under section 367 regarding the treatment of certain transfers of property to foreign corporations.
5. Proposed modification of regulations under section 337(d) regarding certain transfers of property to regulated investment companies (RICs) and real estate investment trusts (REITs
6. Proposed modification of regulations under section 987 on income and currency gain or loss with respect to a section 987 qualified business unit.
The IRS and Treasury are also prioritizing implementation of the President's Executive Order 13813, Promoting Healthcare Choice and Competition Across the United States. The Executive Order, among other things, directs Treasury and the Departments of Labor and Health and Human Services to consider proposing or revising regulations or guidance to increase the usability of health reimbursement arrangements.
Finally, it is a priority of the IRS to publish regulations under section 1101 of the Bipartisan Budget Act of 2015 (BBA) that are necessary to implement the new centralized partnership audit regime enacted in November 2015. Section 1101(g)(1) of the BBA provides that the new regime is generally effective for partnership tax years beginning after December 31, 2017. Final regulations regarding the election out of the centralized partnership audit regime were published January 2, 2018. Final regulations regarding the partnership representative and the election to apply the centralized partnership audit regime were published August 9, 2018. Proposed regulations implementing the centralized partnership audit regime were published August 17, 2018.
V. Bureau of the Fiscal Service
The Bureau of the Fiscal Service (Fiscal Service) administers regulations pertaining to the Government's financial activities, including: (1) implementing Treasury's borrowing authority, including regulating the sale and issue of Treasury securities; (2) administering Government revenue and debt collection; (3) administering government-wide accounting programs; (4) managing certain Federal investments; (5) disbursing the majority of Government electronic and check payments; (6) assisting Federal agencies in reducing the number of improper payments; and (7) providing administrative and operational support to Federal agencies through franchise shared services.
During fiscal year 2019, the Fiscal Service will accord priority to the following regulatory projects:
The Fiscal Service plans to publish a notice of proposed rulemaking to amend 31 CFR part 206 governing the collection of public money, along with a request for public comments. This notice will propose implementing statutory authority which mandates that some or all nontax payments made to the Government, and accompanying remittance information, be submitted electronically. Receipt of such items electronically offers significant efficiencies and cost-savings to the government, compared to the receipt of cash, check or money order payments.
The Fiscal Service is proposing to amend its electronic payment regulation at 31 CFR part 208. The amendment would eliminate obsolete references in the rule, including references to the Electronic Transfer Account (ETAsm). In addition, the proposed rule would provide for the disbursement of non-benefit payments through Treasury-sponsored accounts, such as the U.S. Debit Card.
The Fiscal Service is proposing to amend its regulation at 31 CFR part 210 governing the government's participation in the Automated Clearing House (ACH). The proposed amendment would address changes to the National Automated Clearing House Association's (NACHA) private-sector ACH rules since those rules were last incorporated by reference in Part 210. Among other things, the amendment would address the expansion of Same-Day ACH.
VI. Office of the Comptroller of the Currency
The Office of the Comptroller of the Currency (OCC) charters, regulates, and supervises all national banks and Federal savings associations (FSAs). The agency also supervises the Federal branches and agencies of foreign banks. The OCC's mission is to ensure that national banks and FSAs operate in a safe and sound manner, provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations.
Regulatory priorities for fiscal year 2019 include the following regulatory actions, which include rules implementing various provisions of the Economic Growth, Regulatory Relief, and Consumer Protection Act (Pub. L. 115-174) (EGRRCPA):
The banking agencies are planning to issue rulemakings to simplify the generally applicable capital framework with the goal of meaningfully reducing regulatory burden on community banking organizations while at the same time maintaining safety and soundness and the quality and quantity of regulatory capital in the banking system. These rulemakings will incorporate the new requirements set forth in section 201 of EGRRCPA, the community bank leverage ratio, and section 214 of EGRRCPA, requiring a revised approach to defining which acquisition, development, and construction loans should be deemed high volatility commercial real estate exposures. A notice of proposed rulemaking proposing various capital simplifications was issued on October 27, 2017, 82 FR 49984. A notice of proposed rulemaking concerning high volatility commercial real estate exposures was published on September 28, 2018, 83 FR 48990.
The banking agencies are planning to issue a notice of proposed rulemaking to implement a risk sensitive approach to counterparty credit risk using a risk adjusted notational amount of derivatives, allowing for better recognition of netting, and distinguishing margined trades from un-margined trades.
The OCC issued an advance notice of proposed rulemaking setting forth a new approach to CRA to bring clarity, transparency, flexibility, and less burden for regulated financial institutions and consumers. The advance notice of proposed rulemaking was published on September 5, 2018, 83 FR 45053.
The OCC plans to issue a notice of proposed rulemaking to remove the requirement that the board of directors of an FSA approve employment contracts with all employees and limit the approval requirement only to contracts with senior executives.
The OCC and FRB issued a proposed rule that would modify the enhanced supplementary leverage ratio standards for U.S. top-tier bank holding companies identified as global systemically important bank holding companies, or GSIBs, and certain of their insured depository institution subsidiaries. In light of section 402 of EGRRCPA, which requires the Federal banking agencies to propose changes to the supplementary leverage ratio denominator for custody banks, the agencies intend to publish a new rulemaking to implement section 402. The notice of proposed rulemaking was published on April 19, 2018, 83 FR 17317.
The banking agencies plan to issue a notice of proposed rulemaking to implement section 103 of EGRRCPA. Section 103 amended Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 to exclude loans made by a financial institution from the requirement to obtain a Title XI appraisal if certain conditions are met.
To implement section 210 of EGRRCPA, the banking agencies issued an interim final rule expanding the 18-month examination schedule to qualifying well-capitalized and well-managed institutions with less than $3 billion in total assets. The interim final rule was published on August 29, 2018, 83 FR 43961.
The banking agencies issued a notice of proposed rulemaking that would specify capital requirements applicable to an advanced approaches banking organization that invests in long-term debt instruments issued pursuant to the FRB's total loss absorbing capacity regulations, either by a bank holding company or an intermediate holding company.
The banking agencies plan to issue a final rule to reflect the upcoming adoption by banking organizations of FASB's Accounting Standards Update 2016-13, which introduces the current expected credit losses methodology (CECL) for estimating allowances for credit losses. The notice of proposed rulemaking was issued on May 14, 2018, 83 FR 22312.
Section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203, July 21, 2010) (Dodd-Frank Act) requires the banking agencies, National Credit Union Administration (NCUA), Securities and Exchange Commission (SEC), and the Federal Housing Finance Agency (FHFA) to jointly prescribe regulations or guidance prohibiting any type of incentive-based payment arrangement, or any feature of any such arrangement, that the regulators determine encourages inappropriate risks by covered financial institutions by providing an executive officer, employee, director, or principal shareholder with excessive compensation, fees, or benefits, or that could lead to material financial loss to the covered financial institution. The Dodd-Frank Act also requires such agencies jointly to prescribe regulations or guidelines requiring each covered financial institution to disclose to its regulator the structure of all incentive-based compensation arrangements offered by such institution sufficient to determine whether the compensation structure provides any executive officer, employee, director, or principal shareholder with excessive compensation or could lead to material financial loss to the institution. The notice of proposed rulemaking was published on June 10, 2016, 81 FR 37669.
To implement section 403 of EGRRCPA, the banking agencies issued an interim final rule that would add investment-grade municipal obligations to the list of permitted assets for high-quality liquid assets (HQLA), as defined in the agencies' Liquidity Coverage Ratio (LCR) rules. The interim final rule was published on August 31, 2018, 83 FR 44451.
The banking agencies, the Farm Credit Administration (FCA), and the NCUA plan to issue a final rule to amend their regulations regarding loans in areas having special flood hazards to implement the private flood insurance provisions of the Biggert-Waters Flood Insurance Reform Act of 2012. The notice of proposed rulemaking was published on November 7, 2016, 81 FR 78063.
The banking agencies plan to issue a notice of proposed rulemaking that would amend agency regulations interpreting the Depository Institution Management Interlocks Act (DIMIA) to increase the asset thresholds based on inflation or market changes. The current asset thresholds are set at $2.5 billion and $1.5 billion.
The banking agencies, FHFA, and FCA issued a final rule to amend the minimum margin requirements for registered swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants for which one of the agencies is the prudential regulator (Swap Margin Rule). The notice of proposed rulemaking was issued on February 21, 2018, 83 FR 7413, requesting comment on the agencies' plan to revise one definition in the current rule to match the definition used for the same purpose in the agencies' capital regulations. The final rule was published on October 10, 2018, 83 FR 50805.
The banking agencies plan to issue a final rule to implement the Basel net stable funding ratio standards. These standards would require large, internationally active banking organizations to maintain sufficient stable funding to support their assets generally over a one-year time horizon. The notice of proposed rulemaking was published on June 1, 2016, 81 FR 35123.
The OCC plans to issue a notice of proposed rulemaking on other real estate owned (OREO). The proposed rule would update and clarify provisions relating to OREO for national banks and establish a framework to assist Federal savings associations with managing and disposing of OREO in a safe and sound manner.
The banking agencies are planning to issue a final rule that would amend the regulations implementing section 13 of the Bank Holding Company Act. Section 13 contains certain restrictions on the ability of banking entities to engage in proprietary trading and acquire or retain certain interests in, or enter into certain relationships with, a hedge fund or private equity fund. The amendments are intended to provide banking entities with clarity about what activities are prohibited and to improve supervision and implementation of section 13.
The banking agencies intend to address sections 203 and 204 of EGRRCPA through a separate rulemaking process.
Pursuant to section 203 of EGRRCPA, OCC-supervised institutions with total consolidated assets of $10 billion or less are not "banking entities" within the scope of section 13 of the BHCA, if their trading assets and trading liabilities do not exceed 5 percent of their total consolidated assets, and they are not controlled by a company that has total consolidated assets over $10 billion or total trading assets and trading liabilities that exceed 5 percent of total consolidated assets. In addition, section 204 of EGRRCPA revises the statutory provisions related to the naming of covered funds. The notice of proposed rulemaking was issued on July 17, 2018, 83 FR 33432.
The OCC plans to issue an advance notice of proposed rulemaking setting forth key issues to be addressed prior to the development of a framework for receiverships of uninsured Federal branches and agencies.
The banking agencies plan to issue a proposed rule to amend their rules of practice and procedure to reflect modern filing and communication methods and improve or clarify other procedures.
The banking agencies plan to issue a notice of proposed rulemaking to provide criteria for banks and savings associations eligible to file a short-form report in the first and second quarters pursuant to section 205 of the EGRRCPA.
The OCC is planning to issue a notice of proposed rulemaking to amend the annual stress test rule for national banks and Federal savings associations (FSAs) required under section 165(i) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203, July 21, 2010) (12 U.S.C. 5365(i)) (Dodd-Frank Act). These changes are required by section 401 of the EGRRCPA, which amended the Dodd-Frank Act to raise the threshold for national banks and FSAs subject to DFAST from $10 billion to $250 billion in total consolidated assets, reduce the number of stress test scenarios, and revise the annual stress test requirement to a periodic requirement.
The OCC issued a notice of proposed rulemaking to implement section 206 of the EGRRCPA, which adds a new section 5A of the Home Owners' Loan Act. Section 5A allows Federal savings associations with assets of $20 billion or less to elect to operate as "covered savings associations." Covered savings associations operate with the same rights and are subject to the same restrictions as a national bank in the same location. As required by section 5A, the NPRM will propose standards and procedures for making the election. It will also address nonconforming assets and clarify requirements for the treatment of covered savings associations. The notice of proposed rulemaking was published on September 18, 2018, 83 FR 47101.
 The OCC, the Board of Governors of the Federal Reserve System (FRB), and the Federal Deposit Insurance Corporation (FDIC).