ss(1505-0149,31CFR128)

SUPPORTING STATEMENT
Extension of Recordkeeping Requirements Included in
31 C.F.R. Part 128 (OMB No. 1505-0149)

A. JUSTIFICATION
1.

Treasury Regulations 31 C.F.R. Part 128 implement certain provisions of the
International Investment and Trade in Services Survey Act (22 U.S.C. 3101 et seq.)
concerning the reporting of international portfolio capital transactions and positions for
purposes of compiling the balance of payments accounts and the international investment
position of the United States. These regulations further implement the reporting
requirements pursuant to 22 U.S.C. 286f and E.O. 10033, whereby the Treasury is
directed to collect information with respect to capital movements between the United
States and foreign countries and on the monetary reserves of the United States in order
that the U.S. Government may comply with official data requests of the International
Monetary Fund in accordance with section 8(a) of the Bretton Woods Agreements Act.
In addition, the regulations implement the reporting requirements under 31 U.S.C. 5315
whereby the Secretary of the Treasury is authorized and directed to collect data on the
nature and scope of capital flows of large U.S. business enterprises and of their foreign
affiliates, including their foreign currency transactions.
The regulations include a recordkeeping requirement, §128.5, which is necessary to
enable the Treasury to verify reported information and to secure additional information
concerning reported amounts as may be necessary. The recordkeepers are U.S. persons
required to file reports covered by these regulations. Attached is a reprint of 31 C.F.R.
Part 128, as amended, as published in the Federal Register, November 2, 1993, pages
58494 to 58497.

2.

Data collected under authority of 31 C.F.R. Part 128 constitute the most complete and
readily available information on U.S. claims on, and liabilities to, foreigners arising from
international transactions and positions in portfolio capital instruments, securities, and
foreign exchange. The data are necessary for compiling the U.S. international financial
transactions accounts, for calculating the U.S. international investment position, and in
formulating U.S. international financial and monetary policies. Treasury, the Department
of Commerce, and the Board of Governors of the Federal Reserve System are the most
significant users of the data for these purposes. Respondents covered by the
recordkeeping requirements of 31 C.F.R. Part 128 must maintain all information
necessary to make a complete report for at least three years from the date such a report is
required to be filed. This information may be required by the Treasury or by the Federal
Reserve Bank of New York (FRBNY), acting as fiscal agent of the Treasury, to verify
reported transactions or positions and to secure additional information regarding reported
amounts as may be necessary.

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3.

Respondents are informed in 31 C.F.R. §128.2(a)(2) that in lieu of reports on forms
prescribed by the Secretary pursuant to §128.1, the required data may be filed on
magnetic tape or other media that can be processed by data processing equipment and
pursuant to specific agreement signed by a responsible officer of the reporting institution
and the district Federal Reserve Bank with which the report is filed. These alternative
methods of reporting include electronic submission of data.
Because respondents' internal methods of maintaining and retrieving reportable
information vary widely and are not dependent upon the cited reporting requirements,
including the recordkeeping requirement under §128.5, there is no single information
technology that can be prescribed to reduce burden on respondents.

4.

There is no duplication with respect to the recordkeeping function.

5.

The exemption thresholds of the reporting forms prescribed pursuant to §128.1 ensure
that small depository institutions, securities firms, nonbank business enterprises, and
other entities are excluded from the reporting populations.

6.

The periodic reports for collecting information on international capital transactions and
positions (Subpart B of 31 C.F.R. Part 128) and on foreign exchange positions (Subpart
C) vary from weekly to semi-annual submissions. These reporting frequencies were
determined by balancing the needs of the U.S. Government for timely statistics and the
abilities of respondents to compile reliable information. The lack of timely information
could seriously impair the ability of the U.S. Government to respond to important
developments in international capital and foreign exchange markets; the lack of accurate
information could diminish the effectiveness of the Government's financial and monetary
policies. The recordkeeping requirement prescribed under §128.5 is therefore necessary
because it allows for validation of reported data and for revisions to the data series as
may be necessary.
There are no legal obstacles to reducing the recordkeeping burden on respondents.

7.

Under 31 C.F.R. Part 128, Subpart C, Reports on Foreign Currency Positions, certain
data are required to be reported by respondents in fewer than 30 days. Due to the rapid
changes characteristic of foreign exchange markets, reporting delays of 30 days (as
required in 5 C.F.R. 1320.6(b)) would make these data unusable for operational decisions
in the foreign exchange markets. The mandate of P.L. 93-110 (31 C.F.R. 5315) was to
provide the most current data feasible for such purposes.
Other than described in the preceding paragraph, there are no special circumstances with
respect to 31 C.F.R. Part 128, or more specifically the recordkeeping requirement under
§128.5, that are inconsistent with the conditions outlined in Item A.7 of the Specific
Instructions for Supporting Statements for Paperwork Reduction Act Submissions.

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Treasury's notice in the Federal Register soliciting public comment on 31 C.F.R. §128.5
was published Friday, August 29, 2008, pages 51048 and 51049. The deadline for
receiving pre-clearance comments was October 28, 2008. Because of usual ten day
delays in mail delivery, Treasury waited until November 7 to receive mail.
No comments were received regarding the extension of 31 C.F.R. Part 128.
As is done for all TIC forms, discussions regarding all aspects of the reporting systems
authorized under 31 C.F.R. Part 128 are held on an ongoing basis with staff of the
International Reports Division of the Federal Reserve Bank of New York (FRBNY); with
staff of the Federal Reserve Board of Governors' Division of International Finance; and
with staff of the Bureau of Economic Analysis (BEA) of the Department of Commerce.
FRBNY and the other district Federal Reserve Banks collect, review and edit the data
collected under authority of 31 C.F.R. Part 128. The Board of Governors and the BEA
are both major users of the data in aggregate form.
In addition, the staffs of FRBNY and other district Federal Reserve Banks maintain
regular contact with the major respondents. These analysts are in a unique position with
respect to advice on changes needed in the forms or reporting instructions for purposes of
amending or clarifying data coverage.

9.

There has been no provision of payments or gifts to respondents for any purpose.

10. As is the case for all International Capital and Foreign Currency reporting forms,
individual respondent data are considered confidential and access to them is strictly
limited to selected staff of the Treasury and the Federal Reserve System and to other
Federal agencies to the extent allowed by applicable law. Compliance with the Privacy
Act is assured.
11. There are no questions of a sensitive nature.
12. Total annual hour burden:
Number of respondents (recordkeepers): 1,650
Estimated annual burden hours per recordkeeper: 3
Estimated total annual recordkeeping burden: 4,950 hours
The respondent population is estimated at approximately 1,650 banks, brokers, and
nonbanking business enterprises, based on the current reporting thresholds and on efforts
to enforce compliance with mandatory reporting requirements. We expect about 1,650
recordkeeping functions per year. With an estimated average recordkeeping burden of
three hours per filing, the estimated total recordkeeping burden on the public is 4,950
hours per year. The estimated hour burden of three hours is based on average time
required and expected frequency to archive computer data files and/or to retrieve them as
may be necessary and as based on experience with existing reports.

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Generally, compliance with the recordkeeping requirements of §128.5 involves two
persons. It is estimated that the average wage of persons performing recordkeeping
functions is $29.23 per hour (corresponding to an annual salary of $60,800), while that of
supervisory or other more senior staff reviewing the functions is $45.48 per hour
(corresponding to an annual salary of $94,600). With 1,650 respondents undertaking one
recordkeeping function per year, and using an average of 2 and eight-tenths hours per
recordkeeping and two-tenths hour for review, the total annualized cost to respondents
for the burden hours is estimated to be $150,051.
13. Total annual cost burden:
(a) Total annualized capital and start-up costs are estimated to be $0 (zero dollars). In
general, recordkeeping practices prescribed under 31 C.F.R. Part 128 require neither
specialized capital equipment nor fixed or variable costs that are not already
associated with the customary and usual business practices of respondents.
(b) Total annualized operations, maintenance, and purchases of services costs are
estimated to be $0 (zero dollars). Recordkeeping practices prescribed under 31
C.F.R. Part 128 do not in general impose operations, maintenance, or specialized
services costs that are not already associated with the customary and usual practices
of respondents.
The above cost estimates are not expected to vary widely among recordkeepers.
Note: As required by OMB, the Federal Register notice of August 29, 2008, included an
explicit request for public comments on the estimates of cost burden that are not captured
in the estimates of burden hours. No comments on the cost estimates were received.
14. There are no costs, direct or indirect, to the Federal Government in connection with the
recordkeeping requirements under 31 C.F.R. Part 128.
15. For 31 C.F.R. Part 128 recordkeeping, there is no difference between the estimated total
burden hours of 4,950 and the estimate currently carried in OMB's Information
Collection Inventory.
16. There are no publication plans associated with the recordkeeping requirement under 31
C.F.R. Part 128. However, aggregate data reported on periodic reports under this
regulation are regularly published in the quarterly Treasury Bulletin, in the monthly
Federal Reserve Bulletin, and in the Department of Commerce's monthly Survey of
Current Business. The Treasury Bulletin data are also posted quarterly to a Treasury
website maintained by the Financial Management Service (http://fms.treas.gov/bulletin/).
Historical time series of selected aggregate data are posted to the Treasury’s TIC website
(http://www.ustreas.gov/tic/). In addition, tabulations of these data are made on an ad hoc
basis for senior officials at the Treasury and the Board of Governors and other offices at
Treasury and the Board.

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17. Approval to not display the expiration date for OMB approval on the forms has
previously been granted.
18. Regarding this request for OMB approval, there are no exceptions to the certification
statement in item 19 of Form 83-I that apply to 31 C.F.R. Part 128.
B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS
Treasury Regulations 31 C.F.R. Part 128, Reporting of International Capital and Foreign
Currency Transactions and Positions, do not employ statistical methods. Statistical methods are
not applicable.

November 2008