Regulations K and N

International Banking Operations and Relations with
Foreign Banks and Bankers

Summary

Regulation K Governs the international banking operations of US banking organizations and the operations of foreign banks in the United States

Regulation N governs relationships and transactions between Federal Reserve Banks and foreign banks, bankers, or governments

Recent Amendments

All of the following recent amendments relate to Reg K only

Amendment requiring Edge and agreement corporations and US branches, agencies, and other offices of foreign banks supervised by the Board to establish and maintain procedures reasonably designed to ensure and monitor compliance with the Bank Secrecy Act and related regulations eff 4.19.06

Amendment to require financial institutions to adopt measures for properly disposing of consumer information derived from credit reports eff 7.01.05

Adopted by the Federal Reserve, OCC, FDIC and OTS

Amendment requiring certain financial institutions to establish procedures to verify the identity of new accountholders eff 6.09.03

Press release
Notice
Adopted by Treasury, Fed, OCC, FDIC, OTS and NCUA
Implementing Section 326 of the USA Patriot Act

Interpretation on foreign banks underwriting securities to be distributed in the United States eff 2.19.03

Press release
Notice
In order to engage in such activity, the foreign bank must either be a financial holding company or have authority to engage in underwriting activity under section 4(C)(8) of the Bank Holding Company Act

Amendment simplifying the requirements concerning accounting for fees on international loans to make the regulation consistent with generally accepted accounting principles eff 2.10.03

Rules

Regulation K International Banking Operations
12 CFR Part 211

Subpart A International operations of US Banking
organizations

211.1 Authority, purpose, and scope
211.2 Definitions
211.3 Foreign branches of US banking organizations
211.4 Permissible activities and investments of foreign
branches of member banks
211.5 Edge and agreement corporations
211.5 Edge and agreement corporations
211.6 Permissible activities of Edge and agreement
corporations in the United States
211.7 Voluntary liquidation of Edge and agreement corps
211.8 Investments and activities abroad
211.9 Investment procedures
211.10 Permissible activities abroad
211.11 Advisory opinions under Reg K
211.12 Lending limits and capital requirements
211.13 Supervision and reporting

Subpart B Foreign banking organizations

211.20 Authority, purpose, and scope
211.21 Definitions
211.22 Interstate banking operations of foreign banking
organizations
211.23 Nonbanking activities of foreign banking orgs
211.24  Approval of offices of foreign banks; procedures
           for applications; standards for approval;
           representative office activities and standards for
           approval; preservation of existing authority
211.25 Termination of offices of foreign banks
211.26 Examination of offices and affiliates of foreign
banks
211.27 Disclosure of supervisory information to foreign
supervisors
211.28 Provisions applicable to branches and agencies:
limitation on loans to one borrower
211.29  Applications by state branches and state
           agencies to conduct activities not permissible for
           federal branches
211.30 Criteria for evaluating US operations of foreign
banks not subject to consolidated supervision

Subpart C Export trading companies

211.31 Authority, purpose, and scope
211.32 Definitions
211.33 Investments and extensions of credit
211.34 Procedures for filing and processing notices

Subpart D International lending supervision

211.41 Authority, purpose, and scope
211.42 Definitions
211.43 Allocated transfer risk reserve
211.44 Reporting and disclosure of international assets
211.45 Accounting for fees on international loans
211.601  Status of certain offices for purposes of the
             International Banking Act restrictions on
             interstate banking operations
211.602  Investments by United States Banking
            Organizations in foreign companies that transact
            business in the United States
211.603 Commodity swap transactions
211.604 Data processing activities
211.605 Permissible underwriting activities of foreign
banks

Regulation N Relations with Foreign Banks and Bankers
12 CFR Part 214

214.1 Scope of part
214.2 Information to be furnished top the Board
214.3 Conferences and negotiations with foreign banks ,
bankers or States
214.4 Agreements with foreign banks, bankers or States
and participation in foreign accounts
214.5 Accounts with foreign banks
214.6 Amendments

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