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FED ERAL RESER VE BANK O F N EW YORK Fiscal Agent of the United States r Circular N o. 4 8 7 3 1 t A pril 13, 1960 J REPORTS OF TRANSACTIONS IN FOREIGN EXCHANGE, TRANSFERS OF CREDIT, AND EXPORT OF COIN AND CURRENCY Revision of Operating Circular No. 19 T o A ll Banks, Bankers, B rokers, and Others Concerned, tn the Second Federal R eserve D istrict, P u erto Rico, the V irgin Islands, and the Panama Canal Z o n e: Enclosed is a copy o f Operating Circular No. 19, Revised April 13, 1960. The revised circular incorporates the one outstanding supple ment to the superseded edition o f the circular; contains the text of the Regulations o f the Treasury Department on transactions in foreign exchange, transfers o f credit, and export o f coin and currency; and includes, in paragraphs 3 and 4, editorial changes resulting from the deletion of an appendix to the Regulations. Additional copies of the operating circular will be furnished upon request. A lfred H ayes, President. F ed era l o f R N eserv e ew Y B ank ork Fiscal A gent o f the United States O p eratin g C ircular N o . 19 * 1 R ev ised A p ril 13, 1960 J [ R E P O R T S O F T R A N S A C T IO N S IN F O R E IG N E X C H A N G E , T R A N S F E R S O F C R E D IT , A N D E X P O R T O F C O IN A N D C U R R E N C Y T o A ll B anks, B ankers, B rokers, and Others Concerned, in the Second Federal R eserve D istrict, P u erto R ico, the Virgin Islands, and th e Panama Canal Z o n e: This circular contains inform ation on the reports required to be filed with this Bank by persons within the Second Federal Reserve District, Puerto Rico, the V irgin Islands, and the Panama Canal Zone* pursuant to the provisions o f Executive Order No. 6560, Executive Order No. 10033, and the Regulations o f the Secretary o f the Treasury. Executive Order N o. 6560 1. Executive Order No. 6560, dated January 15, 1934, prohibits, unless licensed or excepted as provided therein, transactions in foreign exchange, transfers o f credit, and .the export or withdrawal from the U nited States o f coin and currency. Section 5 o f the Order authorizes the Secretary o f the Treasury to prescribe regulations to carry out the purposes o f the Order, and to require any person engaged in any such transaction, transfer, export, or withdrawal, to furnish complete inform ation relative thereto. The text o f the Order is published in the Code o f Federal Regulations, Volum e 31, P art 127. E xecu tive O rd er N o. 10033 and determ in ation s th ereu n d er 2. Executive Order No. 10033, dated February 8, 1949, among other things, authorizes (a ) the National A dvisory Council on Interna tional Monetary and Financial Problems to determine what inform a tion is essential in order that the United States Government may com ply with requests fo r data received from the International M onetary Fund, and (b ) the D irector o f the Bureau o f the Budget to determine what Federal executive agency shall collect such inform ation. The text o f the Order is published in the Code o f Federal Regulations, Volume III , 1949 Supplement. 3. The National A dvisory Council, on March 18, 1949, made the follow ing determination pursuant to Executive Order No. 10033: The National Advisory Council, having consulted with the Director o f the Bureau of the Budget, determines that information with respect to gold holdings, foreign currency claims on and dollar liabilities to * In a letter dated February 1, 1954, the Acting Secretary o f the Treasury authorized this Bank “ to serve as fiscal agent o f the United States for the collection o f any and all reports required under the Treasury Regulations of April 27, 1949, as amended, from persons in Puerto Rico, the Virgin Islands, and the Panama Canal Zone.” foreigners o f banks, brokers, corporations and others in the United States, including the United States Government, is essential annually in order that the United States Government may comply with the official request o f the International Monetary Fund. 4. In a determination dated M ay 4, 1950, amending a previous determination, the D irector o f the Bureau o f the Budget, pursuant to Executive Order No. 10033, designated the Treasury Department as the Federal executive agency to collect the inform ation foun d essential by the National A dvisory Council (except inform ation relative to claims and liabilities o f United States Government agencies). Regulations o f the Secretary o f the Treasury 5. The Regulations o f the Secretary o f the Treasury issued p u r suant to the above-mentioned Executive Orders and determinations are printed beginning on page 4 o f this circular. The R egulations: (a) grant a general license authorizing the transactions prohibited by Executive Order No. 6560; (b ) require every person subject to the jurisdiction o f the United States engaging in any transaction, transfer, export or withdrawal re ferred to in Section 1 o f that Order to furnish to the Federal Reserve Bank o f the Federal Reserve District in which such person has his prin cipal place o f business, or, i f such person has no principal place o f busi ness in a Federal Reserve District, to the Treasury Department or to such agency as that Department may designate, (i) complete information relative thereto, including information relative to claims and liabilities arising therefrom, and, (ii) fo r the purpose o f Executive Order No. 10033, the in for mation determined to be essential by the National Advisory Council in order to comply with official requests fo r data made by the Inter national Monetary Fund, to such extent and in such manner and at such intervals as is required by report form s and instructions prescribed by the Secretary o f the Treasury; and (c ) describe the report form s prescribed by the Secretary fo r fu r nishing the information called fo r by the Regulations, and specify the persons required to make such reports and the frequency with which such reports are required to be made (paragraph 7 o f this circular sets forth certain exemptions from the reporting requirements). When completed reports should be filed with this Bank 6. The com pleted reports required to be filed with this Bank should be filed within the follow in g respective p eriod s: (a ) Monthly reports on Forms B -l and B -2 : Not later than the fifteenth day following the report date (the last business day o f each month). (b ) Monthly reports on Form S -l/ 3 : Not later than the fifteenth day following the end o f the month covered by the report. (c ) Quarterly reports on Form C -l/ 2: Not later than the last day o f the month following the report date (the last business day o f each quarter ending in March, June, September and December). 2 (d ) S em ia n n u a l r e p o r ts on F o r m S - 4 : N ot later than the fifteenth day follow in g the rep ort dates (Ju n e 30 and Decem ber 3 1 ). (e ) A n n u a l r e p o r ts on F o r m I M F - C : N ot later than the last day o f the month follow in g the rep ort date. W h o must report 7. A ll bankers and banking institutions, brokers and dealers, exporters, importers, industrial and commercial concerns, and other nonbanking institutions in the United States are required to report, except as specified in paragraph 8. The reports o f head offices having branches or subsidiaries in the United States should include the reportable amounts o f all such branches or subsidiaries. Exem ptions from reporting requirements 8. The Secretary o f the Treasury has exempted the persons indi cated below from furnishing inform ation on the follow ing prescribed forms. The exemption may be applied separately to each branch or subsidiary. (a ) F o r e ig n E x c h a n g e F o r m B - l : A rep ort as o f any one month need not be filed by a banker o r banking institution i f the grand total o f liabilities to “ foreign ers” f o r its own account and fo r the account o f others averaged less than $500,000 in the six months ending with and including the reporting date, com puted b y averaging the m onthly closing balances. This exem ption applies separately to each domestic branch o f a report in g institution. (b ) F o r e ig n E x c h a n g e F o r m B - 2 : The exem ption applicable to F orm B -l , set forth in (a ) above, is also applicable to F orm B -2 (Claims on “ F oreigners” ). ( c ) F o r e ig n E x c h a n g e F o r m S - l / 3 : A rep ort f o r any one month need not be filed b y a “ person,” otherwise required to report, i f both the grand total o f purchases and the grand total o f sales o f “ long-term ” securities, f o r his own account o r f o r the account o f others in transactions with “ foreign ers,” averaged less than $100,000 p er month in the six months preceding the reportin g date, com puted b y including transactions made in the month ending on the reportin g date. (d ) F o r e ig n E x c h a n g e F o r m C - l / 2 : A rep ort with respect to liabilities to “ foreigners” ( C - l ) as o f the end o f any quarter need not be filed b y any “ person,” otherwise required to report, i f the grand total o f his liabilities to “ foreigners” f o r his own account and f o r the account o f others averaged less than $100,000 in the quarter ending with the rep ort ing date and the preceding quarter, com puted b y averaging the closing balances as o f the end o f the tw o quarters. Sim ilarly, a rep ort with respect to claims on “ foreigners” (C -2 ) as o f the end o f any quarter need not be filed b y any “ person,” otherwise required to report, i f the grand total o f his claims on “ foreigners” f o r his own account and f o r the account o f others averaged less than $100,000 in the quarter ending with the reportin g date and the preceding quarter, com puted b y averaging the closing balances as o f the end o f the two quarters. (e ) F o r e ig n E x c h a n g e F o r m S - 4 : A rep ort as o f June 30 or Decem ber 31 need not be filed by a broker o r dealer, otherwise required to report, whose total debit balances and total credit balances in accounts with “ foreigners” are both less than $100,000 on the reportin g date and also were less than $100,000 on the preceding reportin g date. 3 Requests fo r report forms 9. Requests for the prescribed report form s should be addressed to the Balance o f Payments Division o f the Research Department of this Bank. Effect o f this circular on previous circular 10. This circular supersedes our Operating Circular No. 19, Revised effective March 31, 1954, and the F irst Supplem ent thereto, dated December 8, 1955. A lfred H ayes, President. P art 128— o f T r a n s a c tio n s C r e d it, a n d in su bpart a Sec. 128.1 128.2 128.3 F o r e ig n E xp ort o f Exchange, C o in and T r a n sfe rs C u rren cy* — REGULATIONS General license. Reports. Modification or revocation. SUBPART B— DESCRIPTION OP FORMS PRESCRIBED UNDER T H IS PART 128.10 128.11 128.13 128.14 128.15 128.16 128.18 Copies. Foreign Exchange Form B - l : Liabilities to “ foreigners” . Foreign Exchange Form B -2: Claims on “ foreigners” . Foreign Exchange Form C - l/2 : Liabilities to and claims on “ fo r eigners ’ \ Foreign Exchange Form S -l /3 : Purchases and sales o f “ long-term” securities by “ foreigners” . Foreign Exchange Form S-4: Foreign debit and credit balances. Form IM F-C : Dollar liabilities to “ foreigners” . A u t h o r i t y : $ § 128.1 to 128.18 issued under sec. 5, 40 Stat. 415, as amended; 50 U. S. C. A pp . 5. Interpret or apply sec. 8, 59 Stat. 515; 22 U. S. C. 286f, E. 0 . 6560, Jan. 15, 1934, E. O. 10033, 14 F . R. 561, 3 CFR, 1949 Supp. SUBPART A— REGULATIONS : § § 128.1 to 128.3 appear at 14 F. R. 2063, A pr. 27, 1949. § 128.1 General license. Licenses may be granted, and a general license is hereby granted, to all individuals, partnerships, associations, and corpora tions, authorizing any and all transactions in foreign exchange, transfers of credit, and exports o f currency (other than gold certificates) and silver coin. The general license granted in this section authorizes transactions to be car ried out which are permitted by Executive Order 6560 o f January 15, 1934 S ou rce * E xtract from T itle 31, Code o f Federal Regulations. 4 (Part 127 o f this chapter), under license therefor issued pursuant to such Executive order; but does not authorize any transaction to be carried out which, at the time, is prohibited by any other order or by any law, ruling, or regulation. $ 128.2 R e p o r ts . In order to effectuate the purposes o f Executive Order 6560 o f January 15, 1934 (Part 127 o f this chapter), and in order that infor mation requested by the International Monetary Fund under the Articles o f Agreement o f the Fund may be obtained in accordance with section 8 (a ) of the Bretton W oods Agreements Act (Sec. 8 (a ) 59 Stat. 515; 22 U. S. C. 286f and Executive Order No. 10033, 14 F . R. 561; 3 CFR, 1949 Supp.), every person subject to the jurisdiction o f the United States engaging in any transaction, transfer, export or withdrawal referred to in $ 127.1 o f this chapter shall furnish to the Federal Reserve bank o f the district in which such person has his principal place o f business in the United States information relative thereto, including information relative to claims and liabilities arising therefrom, and information determined to be essential to comply with official requests for data made by the International Monetary Fund, to such extent and in such manner and at such intervals as is required by report forms and instructions prescribed by the Secretary o f the Treasury. In the event that such person has no principal place o f business within a Federal Reserve district, the information shall be furnished directly to the Office o f Interna tional Finance, Treasury Department, Washington 25, D. C., or to such agency as the Treasury Department may designate. $ 128.3 M o d ifica tio n o r rev o ca tio n . The regulations in this part and the general license granted in this part may be modified or revoked at any time. SUBPART B— DESCRIPTION OP FORMS PRESCRIBED UNDER T H IS PART $§128.10 to 128.18 appear at 15 F . R. 239, Jan. 14, 1950, except as otherwise noted. S ou rce: $ 128.10 C o p ies. Copies o f the forms described in this subpart with instructions may be obtained from any Federal Reserve bank or the Office o f International Finance, Treasury Department, Washington 25, D. C. $ 128.11 F o r e ig n E x c h a n g e F o r m B - l : L ia b ilities to “ fo r e ig n e r s ” . On this form bankers and banking institutions in the United States are required to report monthly to a Federal Reserve bank “ short-term” and certain other liabilities to “ foreigners” or assets held on behalf o f “ foreigners” which represent claims on institutions or individuals in the United States, as o f the last day o f business o f the month. $ 128.13 F o r e ig n E x c h a n g e F o r m B - 2 : C laim s on “ f o r e ig n e r s ” . On this form bankers and banking institutions in the United States are required to report monthly to a Federal Reserve bank “ short-term” and certain other assets owned by the reporter or a domestic client which represent claims on “ foreigners” , as o f the last day o f business o f the month. $ 128.14 F o r e ig n E x c h a n g e F o r m C - l / 2 : L ia b ilities to and claim s on “ fo r e ig n e r s ” . On this form exporters, importers, industrial and commercial concerns and other nonbanking institutions are required to report quarterly as o f the last day o f business o f the quarter, to a Federal Reserve bank “ short-term” and certain other liabilities to and claims on “ foreigners” acquired or held, either in the United States or abroad, by reporting organiza tions fo r their own account or fo r the account o f others. $ 128.15 F o r e ig n E x c h a n g e F o r m S -l/ 3 : P u rch a ses and sa les o f “ lon g ter m ” secu rities b y “ f o r e ig n e r s ” . On this form bankers and banking institu tions, brokers, dealers, etc., are required to report monthly to a Federal 5 Reserve bank transactions in “ long-term” and certain other securities executed in the United States for account o f “ foreigners” and transactions in “ long term” securities executed abroad for their own account and for the account o f their domestic clients. $ 128.16 F o r e ig n E x c h a n g e F o r m S-4: F o r e ig n d eb it an d cred it balan ces. On this form brokers, dealers, etc., are required to report semi-annually to a Federal Reserve bank, the debit and credit balance in their accounts carried by or for “ foreigners” , as o f June 30 and December 31. [19 F. E. 685, Feb. 5, 1954] $ 128.18 F o r m 1 M F - C : D o lla r lia bilities to “ f o r e i g n e r s ” . On this form bankers and banking institutions in the United States are required to report annually, as o f April 30th, to a Federal Reserve bank short-term dollar liabilities to “ foreigners” . N ote : The reporting requirements contained in this subpart have been approved by the Bureau o f the Budget in accordance with the Federal Reports Act o f 1942. 6
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