retail foreign exchange transactions

OCC Interim Final Rule on Retail Forex Transactions

On September 12, the OCC adopted an interim final rule to expand its rule on retail foreign exchange transactions to also apply to Federal savings associations and to make conforming changes to required risk disclosure statements. The rule became effective on September 12. Any federal savings associations engaged in a retail foreign exchange business prior to July 12 must request a supervisory no-objection within 30 days of the effective date to continue this business. OCC Release. OCC Interim Final Rule.

Fed Notice of Proposed Rulemaking on Retail Foreign Exchange Transactions

On July 28, pursuant to Section 742(c)(2) of the Dodd-Frank Act, the Fed issued a notice of proposed rulemaking and request for comment on a regulation to permit banking organizations under its supervision to engage in off-exchange transactions in foreign currency with retail customers. The proposed regulation sets forth certain disclosure, recordkeeping, and business conduct requirements, with which banking organizations must comply in order to conduct these transactions. Comments on the NPR must be submitted by October 11. Fed Release. Fed NPR.