(a) U.S. risk committee
certification. A foreign banking organization subject to this
subpart, must, on an annual basis, certify to the Board that it maintains
a committee of its global board of directors (or equivalent thereof),
on a standalone basis or as part of its enterprise-wide risk committee
(or equivalent thereof) that:
(1) Oversees the risk-management policies of the combined U.S. operations
of the foreign banking organization; and
(2) Includes at least one member having
experience in identifying, assessing, and managing risk exposures
of large, complex firms.
(b) Timing of certification. The certification required under paragraph
(a) of this section must be filed on an annual basis with the Board
concurrently with the FR Y-7.
(c) Responsibilities of the foreign banking organization. The foreign
banking organization must take appropriate measures to ensure that
its combined U.S. operations implement the risk-management policies
overseen by the U.S. risk committee described in paragraph (a) of
this section, and its combined U.S. operations provide sufficient
information to the U.S. risk committee to enable the U.S. risk committee
to carry out the responsibilities of this subpart.
(d) Noncompliance with this section. If a foreign
banking organization does not satisfy the requirements of this section,
the Board may impose requirements, conditions, or restrictions relating
to the activities or business operations of the combined U.S. operations
of the foreign banking organization. The Board will coordinate with
any relevant State or Federal regulator in the implementation of such
requirements, conditions, or restrictions. If the Board determines
to impose one or more requirements, conditions, or restrictions under
this paragraph, the Board will notify the organization before it applies
any requirement, condition or restriction, and describe the basis
for imposing such requirement, condition, or restriction. Within 14
calendar days of receipt of a notification under this paragraph, the
company may request in writing that the Board reconsider the requirement,
condition, or restriction. The Board will respond in writing to the
organization’s request for reconsideration prior to applying
the requirement, condition, or restriction.
