To: All Member Banks and Others Concerned in the Third Federal Reserve District

Attention: Chief Executive Officer and Chief Compliance Officer

Subject: Regulation K (12 CFR Part 211) - Notice of Proposed Rulemaking


The Federal Reserve Board has announced that it is seeking public comment on a proposal to amend Regulation K to require Edge and Agreement corporations and U.S. 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.

Comments on the Board’s proposed rulemaking should be submitted by June 30, 2003.

The Board's Notice of Proposed Rulemaking, which was published in the Federal Register for May 30, 2003, is attached (19 KB, 6 pages).

Address: Comments should refer to Docket No. R-1147 and may be mailed to Ms. Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, N.W., Washington, DC 20551. However, because paper mail in the Washington area and at the Board of Governors is subject to delay, please consider submitting your comments by e-mail to, or faxing them to the Office of the Secretary at 202-452-3819 or 202-452-3102. Members of the public may inspect comments in Room MP-500 between 9:00 a.m. and 5:00 p.m. on weekdays pursuant to 261.12, except as provided in 261.14, of the Board's Rules Regarding Availability of Information, 12 CFR 261.12 and 261.14.

For Further Information: Pamela J. Johnson, Senior Anti-Money Laundering Coordinator, (202) 728-5829, or Nina A. Nichols, Counsel, Division of Banking Supervision and Regulation, (202) 452-2961; or Melinda Milenkovich, Counsel, (202) 452-3274, or Thomas Scanlon, Counsel, Legal Division, (202) 452-2594. For users of Telecommunications Devices for the Deaf (TDD) only, contact (202) 263-4869.