Overview
Title
Agency Information Collection Activities; Submission for OMB Review; Comment Request; Treasury Foreign Currency Forms
Agencies
ELI5 AI
The Treasury Department wants some people and companies to fill out forms about money they are using from other countries, and they have to do it every week, month, or three months. They want everyone to talk about it and ask questions if they're confused or think it's too much work.
Summary AI
The Department of the Treasury plans to submit information collection requests regarding Treasury Foreign Currency Forms FC-1, FC-2, and FC-3 to the Office of Management and Budget (OMB) for review. This collection is in accordance with the Paperwork Reduction Act of 1995, and the public is invited to submit comments by February 26, 2021. These forms collect data on foreign exchange markets and are required from significant market participants, including both U.S. and foreign entities controlled by U.S. persons. The forms are submitted weekly, monthly, or quarterly, depending on the type, with an estimated total annual response burden of 3,963 hours.
Abstract
The Department of the Treasury will submit the following information collection requests to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995, on or after the date of publication of this notice. The public is invited to submit comments on this request.
Keywords AI
Sources
AnalysisAI
The document summarized here is a notice from the Department of the Treasury regarding the submission of certain information collection requests to the Office of Management and Budget (OMB). This submission is related to Treasury Foreign Currency Forms FC-1, FC-2, and FC-3, which are instruments for collecting data on foreign exchange markets. This process is carried out under the regulations prescribed by the Paperwork Reduction Act of 1995, inviting public commentary by a specified deadline of February 26, 2021.
General Overview
The primary aim of this document is to alert the public and stakeholders about the Treasury's intention to collect information through these forms. The FC-1, FC-2, and FC-3 forms are designed to gather data on various aspects of foreign currency transactions. These forms target significant market participants, which include businesses or other for-profit organizations that engage in foreign exchange activities. Each form has a different frequency of submission: weekly, monthly, or quarterly, contributing to a considerable volume of annual responses.
Issues and Concerns
A few key issues and concerns arise from this document. Firstly, while the notice outlines the procedural aspects of collecting data, it fails to explicitly detail how the collected data will be utilized. This omission can lead to skepticism about the necessity and relevance of such data collection efforts. Furthermore, the time estimated for each form's completion—particularly the 8 hours required for FC-3—might seem burdensome, without a detailed justification for why it is necessary.
Additionally, there is a lack of clarity on the concept of "significant market participants." Without a precise definition, businesses may struggle to determine their obligations, potentially leading to compliance ambiguity or errors. There is also no assessment in the document of the economic impacts on respondents, leaving room for concern regarding compliance costs and the potential financial burden on businesses required to submit these forms.
Public and Stakeholder Impact
Broadly, the document's impact on the public is primarily one of administrative awareness, notifying stakeholders of their opportunity to comment on the proposed data collection. For businesses involved in foreign exchange markets, this notice embodies a call to engage with and potentially influence the administrative process by offering feedback within the designated timeframe.
For specific stakeholders, particularly those in the financial and business sectors engaged in significant foreign exchange activities, there might be both positive and negative impacts. On the positive side, the collection of this data may contribute to a more robust understanding and regulation of the foreign exchange market, potentially fostering stability and transparency. Conversely, the negative aspects may include the administrative burden and associated costs of compliance, as well as concerns over privacy and the handling of submitted data.
In conclusion, while this document is an essential procedural notice, its lack of detail on certain critical aspects may lead to ambiguity and concern among affected parties. Engaging the public through comments and dialogue remains pivotal in addressing these concerns and shaping a transparent and efficient data collection process.
Issues
• The document does not provide specific information on how the data collected from Forms FC-1, FC-2, and FC-3 will be used, which might raise concerns about the necessity and relevance of the data collection.
• The estimated time per response for each form might seem excessive to some parties, particularly 8 hours for FC-3, without a detailed explanation of why such time is necessary.
• The document lacks clear information on the beneficiaries of the collected data or insight into how the information will directly improve government functions or services.
• The document does not clearly define 'significant market participants,' which could lead to ambiguity regarding who is required to respond.
• There is no mention of the potential costs incurred by businesses for compliance with these reporting requirements, raising concerns about the economic impact on respondents.