[Federal Register Volume 71, Number 151 (Monday, August 7, 2006)]
[Rules and Regulations]
[Pages 44555-44560]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-12732]
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FEDERAL RESERVE SYSTEM
12 CFR Part 268
[Docket No. OP-1264]
Rules Regarding Equal Opportunity
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Interim rule with request for comments.
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SUMMARY: The Board of Governors of the Federal Reserve System (the
Board) is soliciting comments on a new interim rule that would amend
the section of its Rules Regarding Equal Opportunity (EEO Rules) which
governs the employment of persons who are not United States citizens
consistent with the Board's requirements for the security of its
information. The amendment revises an earlier interim rule that
clarified the limitations on access to sensitive information by non-
citizen employees to Federal Open Market Committee (FOMC) information.
The amendment, which concerns the internal management of the Board,
is issued as an immediately effective interim rule, with opportunity
for public comment, to ensure that hiring decisions facing the Board
can be made as soon as possible.
DATES: Effective Date: This interim rule is effective August 7, 2006.
Applicability Date: This interim rule is applicable to all
decisions on access to Sensitive Information of the Board as of August
7, 2006.
Comment Date: Submit comments on or before October 6, 2006.
ADDRESSES: You may submit comments, identified by Docket No. OP-1264,
by any of the following methods:
Agency Web Site: http://www.federalreserve.gov. Follow the
instructions for submitting comments at http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: regs.comments@federal reserve.gov. Include docket
number in the subject line of the message.
FAX: 202/452-3819 or 202/452-3102.
Mail: Jennifer J. Johnson, Secretary, Board of Governors
of the Federal Reserve System, 20th Street and Constitution Avenue,
NW., Washington, DC 20551.
All public comments are available from the Board's Web site at
http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical reasons. Accordingly, your
comments will not be edited to remove any identifying or contact
information. Public comments may also be viewed electronically or in
paper in Room MP-500 of the Board's Martin Building (20th and C
Streets, NW.) between 9 a.m. and 5 p.m. on weekdays.
FOR FURTHER INFORMATION CONTACT: Alicia S. Foster, Senior Counsel (202-
452-5289), Legal Division, Board of Governors of the Federal Reserve
System, 20th Street and Constitution Avenue, NW., Washington, DC 20551.
For users of Telecommunications Device for the Deaf (``TDD'') only,
contact 202/263-4869.
SUPPLEMENTARY INFORMATION: The Board proposes to amend Sec. 268.205 of
its Rules Regarding Equal Opportunity (12 CFR 268.205), governing the
employment of persons who are not United States citizens in accordance
with the Board's security requirements. The amendments are effective
immediately, subject to revision based on public comment.
On November 7, 2005, by an immediately effective interim rule, the
Board amended Sec. 268.205 to permit the Board to hire certain Non-
Citizens into positions requiring access to information of the Federal
Open Market Committee (FOMC), subject to certain conditions and a
preference for U.S. citizens over equally qualified non-citizens. The
Board received no comments on the November 2005 interim rule. After the
Board published the November 2005 interim rule and before the Board
published the rule in final form, however, it became apparent that the
hiring needs that exist with respect to FOMC Information that prompted
the need to change the rules also exist with respect to Confidential
Supervisory Information, a second category of Sensitive Information.
[[Page 44556]]
Therefore, this new interim rule extends the hiring requirements that
apply to FOMC Information to Confidential Supervisory Information and
makes some additional modifications that apply to access to FOMC and
Confidential Supervisory Information. Similar to the November 2005
interim rule, however, this interim rule does not change the rules for
access to National Security Classified Information as access to that
information is governed by the applicable executive orders.
Confidential Supervisory Information, which generally consists of
information regarding the Board's examination and supervision of
entities subject to its jurisdiction, is one of three types of
information defined as ``Sensitive Information'' under Sec. 268.205.
The other two types of ``Sensitive Information'' are information of the
FOMC and National Security Classified Information. The Board is
proposing to amend the rules governing who may be hired as an employee
into a position requiring access to Confidential Supervisory
Information for the same business reasons that it changed the hiring
rules applicable to positions requiring access to FOMC Information. As
discussed in the November 2005 interim rule, in recent years, the
Board, like employers throughout the United States, has been having
greater difficulty identifying qualified U.S. citizens, U.S. nationals,
and non-citizens who are eligible to obtain and do, in fact, seek U.S.
citizenship (the three categories of persons that the rule refers to as
``Protected Individuals'') as candidates for positions in a number of
important job families. In particular, the pool of graduates who have a
Ph.D. in economics or finance, who possess the skills needed for the
particular position and who are also Protected Individuals has
diminished significantly over the past two decades.
Currently, the Board's rules limit access to Confidential
Supervisory Information to Protected Individuals. To address the
diminishing number of available U.S. citizens who are graduates with
Ph.Ds in economics or finance and who also possess the other skills
needed for the position, the Board proposes to revise its policy
regarding hiring for positions that require access to Confidential
Supervisory Information. The Board proposes to amend its rule to allow
it to hire individuals who are not Protected Individuals and who do not
intend to become U.S. citizens (``Non-Citizens'') into positions that
require access to Confidential Supervisory Information using the same
parameters that apply to FOMC Information. The interim rule retains the
Board's preference for U.S. citizens and U.S. nationals over equally
qualified persons who are not U.S. citizens or U.S. nationals.
The proposed exception for hiring, which is the same as that for
FOMC Information, limits hiring in positions that require access to
Confidential Supervisory Information to those positions where the Board
determines that hiring a Non-Citizen is appropriate. At present, the
Board has extended this exception only to positions requiring a Ph.D.
in economics or finance. For ease of reference, this interim rule uses
the term ``Eligible Position'' to describe a position or job family
that requires access to Sensitive Information that is covered by this
exception. The Board has determined, however, that it is not
appropriate to hire a Non-Citizen as an Examiner with a standard
credential (meaning a position whose primary responsibility is to
participate regularly in examinations or inspections of institutions
for which the Federal Reserve serves as the primary federal regulator).
Accordingly, this position is not an Eligible Position and only a
Protected Individual may be appointed as an Examiner with a standard
credential.
This interim rule also parallels the country of origin requirements
that were adopted for access to FOMC Information. Thus, as with the
FOMC provisions, for purposes of hiring an individual into an Eligible
Position that requires access to Confidential Supervisory Information,
the interim rule distinguishes between Non-Citizens who are from a
country on the Country List and those Non-Citizens that are from a
country that is not on the Country List. The Country List, which is
contained in the annual appropriations' laws, specifies those countries
that are exempt from the ban on the use of appropriated funds and the
categories of individuals who are eligible for hire as federal
employees using appropriated funds.\1\
Further, similar to the provisions for access to FOMC Information,
the level of access to Confidential Supervisory Information also is
determined based on the sensitivity of the information. Confidential
Supervisory Information is designated internally into one of three
security designations: Internal Federal Reserve (FR), Restricted FR,
and Restricted-Controlled FR, with Restricted-Controlled FR as the most
sensitive. These designations correspond to the designations for FOMC
Information as follows: Internal FR to FOMC Class III; Restricted FR to
FOMC Class II; and, Restricted-Controlled FR to FOMC Class I. Under
this interim rule, the Board may hire a Non-Citizen from a country that
is on the Country List as an Employee into a position that requires
access to Confidential Supervisory Information classified as Internal
FR or Restricted FR. In addition, if he or she meets the three
conditions set forth in the rule, which, are the same conditions that
apply to FOMC Information, that person may be granted access to
Restricted Controlled-FR information. Those conditions are: (1) The
Employee's Division Director recommends the employee be given access to
Restricted-Controlled FR information; (2) the Employee has resided in
the United States for at least six years and has been employed for at
least two years with the Board and/or with one or more of the Reserve
Banks; and (3) the Employee has passed a background investigation
acceptable to the Board. If the Country List changes so that the
Employee's country is no longer on the Country List, the Employee's
access or eligibility for access to Confidential Supervisory
Information would not be affected by the change in the Country List so
long as the Employee continues to meet the remaining conditions
outlined above for Employees from a country on the Country List.
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\1\ The appropriations' ban that contains the Country List is
codified at 5 U.S.C. 3101 note. Because the Board's funds are not
appropriated, the Board is not subject to this limitation on hiring.
However, Congress periodically affirms that other government
agencies may use appropriated funds to hire non-citizens from
countries on the Country List. The rule uses the term ``Country
List'' as a common point of reference.
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Under the interim rule, the Board may hire a person who is a Non-
Citizen from a country that is not on the Country List into a position
that requires access to Internal FR information. Upon meeting the three
conditions discussed above, a Non-Citizen from such a country may also
be granted access to Restricted FR information. However, the Board
would not employ a Non-Citizen from a country that is not on the
Country List in a position that requires access to Restricted-
Controlled FR information.
While this rule focuses on Board employment, the Board's rule also
affects Federal Reserve Banks because the Reserve Banks perform
activities under authority delegated by the Board and because those
activities involve access to Board information. This interim rule
clarifies that Reserve Bank staff who seek access to Confidential
Supervisory Information must meet the same conditions as apply to Board
[[Page 44557]]
staff.\2\ Specifically, the interim rule adds a new paragraph (c)(4) to
address access by Reserve Bank employees to FOMC and Confidential
Supervisory Information. Under this provision, to have access to
Confidential Supervisory Information, a Reserve Bank employee must be a
Protected Individual or a Non-Citizen who is hired into an Eligible
Position and meets the requirements for access by Non-Citizens. This
means that, to receive access to the corresponding next higher level of
Confidential Supervisory Information (i.e., for non-Country List--
Internal FR to Restricted FR and for Country List--Restricted FR to
Restricted-Controlled FR), the Employee must meet the residency and
other requirements applicable to similarly situated Board employees.
Once the Employee meets the residency and other requirements, the
Reserve Bank's officer in charge of the supervision department may
recommend that the Employee receive the next higher level of access.
For access to Confidential Supervisory Information, the Board's
Division of Banking Supervision and Regulation (BS&R) must concur with
the recommendation. Upon the Employee's satisfactory completion of the
background investigation, the Board's Director of BS&R could approve
the Employee's access to the next higher level of information, subject
to the limits on access applicable to the Employee's country of
citizenship.
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\2\ For FOMC Information, Reserve Bank employees seeking access
to FOMC Information must comply with the rules of the FOMC, which
are the same as the Board's rules.
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Beyond the changes discussed previously, the interim rule includes
a number of technical changes. It includes a more comprehensive
definition of ``Confidential Supervisory Information'' that describes
the three internal security designations that apply to this
information. In addition, the interim rule clarifies that its focus is
employees and thus, in paragraph (b)(3), which discusses access to
Sensitive Information, the phrase ``hire a person to a position'' was
changed to ``hire a person as an Employee.''
Moreover, because the existing definition of ``Non-Citizen,'' which
was based on the term's general usage in law, was not consistent with
its more limited use under this rule, a Non-Citizen for purposes of
this rule is now defined as ``any person who is not a Protected
Individual.'' As a result of this change to the term ``Non-Citizen,''
changes have also been made to other parts of the rule that use the
same term. Specifically, in the definition of ``Country List,'' the
term ``Non-Citizen'' is replaced with ``person.'' In addition, in the
paragraph setting forth the Board's preference for U.S. citizens and
U.S. nationals, the term ``Non-Citizen'' is replaced with the phrase
``who is not a citizen or National of the United States.''
In an attempt to clarify the rule further, the definition of
``Country List'' is also revised to more accurately reflect that the
Country List is not a separate list but rather is part of a broader
listing of persons and countries exempted from the federal
appropriations' ban. In this same vein, paragraph (c)(1) of the rule is
changed to provide that access to any level of Sensitive Information
includes access to the lower levels of that type of information. Thus,
for example, a person granted access to Restricted-Controlled
Information also has access to Restricted FR and Internal FR
information. Similarly, a person granted access to Class I FOMC
Information also has access to Class II and Class III FOMC Information.
Further, the interim rule includes a revised definition of
``Protected Individual'' that provides an additional means by which a
person may be considered a Protected Individual. The change is meant to
allow an existing Federal Reserve employee who is a lawfully admitted
permanent resident alien, refugee, or a person granted asylum to
qualify as a Protected Individual for purposes of the Board's rule even
if the person filed for citizenship beyond the six month period set
forth in 8 U.S.C. 1324(b)(3)(B)(i). To qualify, the Employee must have
been employed by the Federal Reserve as of January 1, 2006, must have
filed for U.S. citizenship, and must obtain such citizenship within two
years of applying for it. In addition, paragraph (c)(4)(ii) provides
that the rule does not affect access that was granted to a Reserve Bank
employee to Confidential Supervisory Information if that access was
granted before the effective date of this rule. The Board believes
these two limited exceptions are necessary and appropriate to
accommodate individuals who are existing System employees.
Finally, to keep the provisions for FOMC Information substantively
the same as those for Confidential Supervisory Information, paragraphs
(c)(2)(i) and (ii) are changed to parallel the language in the
corresponding paragraphs covering Confidential Supervisory Information.
Further, paragraph (c) is renumbered to accommodate the addition of the
new paragraph (c)(4). In addition, to improve the structure of
paragraph (c), paragraph (c)(3) on Classified National Security
Information is moved to paragraph (c)(5) while paragraph (c)(4) on
Confidential Supervisory Information is moved to paragraph (c)(3).
This rule relates solely to matters of agency management or
personnel, and, therefore, is not subject to the public notice and
comment provisions of the Administrative Procedures Act, 5 U.S.C.
553(a)(2). However, the Board has in the past found public comment on
such matters to be helpful and invites comment on this rule. While
allowing comment, the Board has determined that it is unnecessary, and
would be impracticable, to defer the effective date of this action
until after notice and after public comments have been received and
considered (5 U.S.C. 553(d)(3)). Issuance of this rule as an interim
rule is appropriate, in any event, because the rule concerns only the
internal management and personnel of the Board and is not subject to
statutory delay. In addition, the Board is facing immediate hiring
decisions that would be subject to this rule. The Board believes that
issuance of the regulation as an interim rule is necessary for the
Board to conduct its internal management in an expeditious and
efficient manner. The Board will consider all public comments received
and make changes in its procedures based on those comments where
appropriate. On these bases, the Board has determined that good cause
exists to make this action effective immediately. As this rule concerns
only agency management or personnel, it is not a rule subject to the
Congressional Review Act (CRA), 5 U.S.C. 804(3)(B), and therefore an
analysis under the CRA is not required.
Regulatory Flexibility Act Analysis
Pursuant to section 605(b) of the Regulatory Flexibility Act (Pub.
L. 96-354, 5 U.S.C. 601 et seq.), the Board believes that this rule
will not have a significant economic impact on a substantial number of
small entities. This rule governs the Board's dealings with its
employees and applicants for employment, and would not affect small
entities as defined for purposes of the Regulatory Flexibility Act.
Accordingly, a regulatory flexibility analysis is not required.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
ch. 3506; 5 CFR 1320 appendix A.1), the Board reviewed the proposal
under the authority delegated to the Board by the Office of Management
and Budget. No collections of information pursuant to the Paperwork
Reduction Act are contained in this proposal.
[[Page 44558]]
Plain Language
Section 722 of the Gramm-Leach-Bliley Act requires each federal
banking agency to use plain language in all rules published after
January 1, 2000. In light of this requirement, the Board has sought to
present the interim rule in a simple and straightforward manner. The
Board invites comment on whether the Board could take additional steps
to make the rule easier to understand.
12 CFR Chapter II
List of Subjects in 12 CFR Part 268
Administrative practice and procedure, Aged, Civil rights, Equal
employment opportunity, Federal buildings and facilities, Federal
Reserve System, Government employees, Individuals with disabilities,
Religious discrimination, Sex discrimination, Wages.
Authority and Issuance
0
For the reasons set out in the preamble, the Board amends 12 CFR part
268 as follows:
PART 268--RULES REGARDING EQUAL OPPORTUNITY
0
1. The authority citation for part 268 continues to read as follows:
Authority: 12 U.S.C. 244 and 248(i), (k), and (l).
0
2. Revise Sec. 268.205 to read as follows:
Sec. 268.205 Employment of aliens; Access to sensitive information.
(a) Definitions. The definitions contained in this paragraph (a)
apply only to this section:
(1) Classified Information means information that is classified for
national security purposes under Executive Order No. 12958, entitled
``Classified National Security Information,'' including any amendments
or superseding orders that the President of the United States may issue
from time to time.
(2) Confidential Supervisory Information means confidential
supervisory information of the Board, as defined in 12 CFR 261.2(c).
Three internal security designations, which are subject to change by
the Board, apply to Confidential Supervisory Information. Those
designations are:
(i) Restricted-Controlled FR generally applies to information that,
if disclosed to or modified by unauthorized individuals, might result
in the risk of serious monetary loss, serious productivity loss or
serious embarrassment to the Federal Reserve System. Examples of
Confidential Supervisory Information designated as Restricted-
Controlled FR include, but are not limited to, certain significant
lists of financial institution supervisory ratings and nonpublic
advance information regarding bank mergers or failures.
(ii) Restricted FR covers information that is less sensitive than
Restricted-Controlled FR information and, in general, is the largest
category of Confidential Supervisory Information. This information, if
disclosed to or modified by unauthorized individuals, might result in
the risk of significant monetary loss, significant productivity loss,
or significant embarrassment to the Federal Reserve System. Examples of
Confidential Supervisory Information designated as Restricted FR
include, but are not limited to, single supervisory ratings (e.g.,
CAMELS, BOPEC, etc.), Federal Reserve examination and inspection
reports and workpapers, Interagency Country Exposure Review Committee
(ICERC) country exposure determinations, and shared national credit
data or listings.
(iii) Internal FR covers information that is less sensitive than
Restricted FR or Restricted-Controlled FR and generally applies to
information that, if disclosed to or modified by unauthorized
individuals, might result in the risk of some monetary loss, some
productivity loss, or some embarrassment to the Federal Reserve System.
Examples of Confidential Supervisory Information designated as Internal
FR include, but are not limited to, foreign banking organization
country studies and Federal Reserve risk assessments.
(3) Country List refers to the list contained in the annual federal
appropriations' laws of specific countries, including a general
category of ``countries allied with the United States in a current
defense effort,'' from which particular categories of persons who are
exempt from a ban on the use of appropriated funds are eligible to be
hired as Federal employees in the excepted service or in the senior
executive service. The appropriations' ban is codified at 5 U.S.C. 3101
note. The list of eligible countries and persons is subject to
legislative and other change.
(4) Eligible Position refers to a position or job family requiring
access to Sensitive Information for which the Board determines that
hiring a Non-Citizen is appropriate.
(5) Employee means an individual who works full-time or part-time
and is appointed into Board service for a period of more than 90 days.
The term ``Employee'' does not include members of the Board.
(6) FOMC Information means confidential information of the Federal
Open Market Committee (FOMC) regardless of the form or format in which
it is created, conveyed, or maintained. FOMC Information includes
information derived from confidential FOMC materials. Three internal
security designations, which are subject to change by the FOMC, apply
to FOMC Information as follows:
(i) Class I FOMC generally applies to materials containing
policymaker input, such as that related to monetary policy decisions at
meetings, views expressed by policy makers on future policy, and
identification of meeting participants who express particular views.
Examples of Class I FOMC Information include, but are not limited to,
the ``Bluebook,'' drafts of meeting minutes, unreleased meeting
transcripts, documents reflecting the preparation of semi-annual
forecasts and related testimony, and certain sensitive internal
memorandums and reports.
(ii) Class II FOMC covers information that is less sensitive than
Class I FOMC. This designation generally applies to staff forecasts
prepared for the FOMC and to information about open market operations.
Examples of Class II FOMC Information include, but are not limited to,
Part I of the ``Greenbook,'' reports of the Manager on domestic and
foreign open market operations, and other materials on economic and
financial developments.
(iii) Class III FOMC covers information that is less sensitive than
either Class II or Class I. This designation generally applies to
background information supporting policy discussions and includes, but
is not limited to, Part II of the Greenbook.
(7) National refers to any individual who meets the requirements
described in 8 U.S.C. 1408.
(8) Non-Citizen refers to any individual who is not a Protected
Individual.
(9) Protected Individual means--
(i) A citizen or National of the United States,
(ii) An alien who:
(A) Meets the conditions set forth in 8 U.S.C. 1324b(a)(3)(B), as
amended, and
(B) Has filed with the Board or the appropriate Federal Reserve
Bank a declaration of intention to become a citizen of the United
States, or
(iii) An alien who:
(A) Is lawfully admitted for permanent residence, is admitted for
temporary residence under 8 U.S.C. 1160(a) or section 1255a(a)(1), is
admitted as a refugee under 8 U.S.C.
[[Page 44559]]
1157, or is granted asylum under 8 U.S.C. 1158;
(B) Was an Employee of the Board or a Federal Reserve Bank on
January 1, 2006;
(C) Before requesting access to Sensitive Information filed an
application for U.S. citizenship; and
(D) Has had his or her application for citizenship pending for two
years or less, unless in the case of an application pending for a
longer period, the alien can establish that the alien is actively
pursuing naturalization. Time consumed by the Department of Homeland
Security, Citizenship and Immigration Services (or its predecessor or
successor agency) in processing the application shall not be counted
toward the 2-year period.
(10) Sensitive Information means FOMC Information, Classified
Information, and Confidential Supervisory Information.
(b) Hiring and access--(1) Prohibition against hiring unauthorized
aliens. An individual is eligible for employment with the Board only if
he or she satisfies the requirements of Section 101 of the Immigration
Reform and Control Act of 1986, 8 U.S.C. 1324a.
(2) Preference. Consistent with applicable law, where two
applicants for employment at the Board are equally qualified for a
position, the Board shall prefer the citizen or National of the United
States over the equally qualified person who is not a citizen or
National of the United States.
(3) Protected Individuals' access to Sensitive Information. The
Board may hire a person as an Employee into a position that requires
access to Sensitive Information if the person is a Protected
Individual.
(4) Non-Citizens' access to Sensitive Information. The Board shall
not hire a Non-Citizen into a position that requires access to
Sensitive Information unless the Non-Citizen:
(i) Is in an Eligible Position; and
(ii) Meets the requirements of paragraph (c) of this section
allowing access to Sensitive Information.
(c) Access to Sensitive Information--(1) Generally. The Board will
grant access to Sensitive Information only in accordance with the
Board's rules and policies regarding access to Sensitive Information
and, if applicable, the rules and policies of the FOMC. Access to any
level of Sensitive Information includes access to all lower levels of
that type of Sensitive Information. An Employee who is not a Protected
Individual may not have access to FOMC Information or Confidential
Supervisory Information unless otherwise permitted by this paragraph
(c).
(2) FOMC Information--(i) Access by a Non-Citizen from a country on
the Country List. An Employee in an Eligible Position who is a Non-
Citizen from a country that, on the date the Employee begins employment
with the Federal Reserve System or on the date access is granted, is on
the Country List shall be granted access to Class I FOMC Information
only if the Employee:
(A) Has been recommended for such access by the Employee's Division
Director;
(B) Has been resident in the United States for at least six years,
at least two of which include satisfactory employment with the Board
and/or one or more of the Federal Reserve Banks; and
(C) Has completed a background investigation acceptable to the
Board.
(ii) Access by a Non-Citizen from a country not on the Country
List. An Employee in an Eligible Position who is a Non-Citizen from a
country that, on the date the Employee begins employment with the
Federal Reserve System and on the date access is granted, is not on the
Country List:
(A) Shall not be granted access to Class I FOMC Information, and
(B) Shall be granted access to Class II FOMC Information only upon:
(1) The recommendation of the Employee's Division Director;
(2) Six years of residence in the United States, at least two of
which include satisfactory employment by the Board and/or one or more
of the Federal Reserve Banks; and
(3) Completion of a background investigation acceptable to the
Board.
(iii) Changes to the Country List. If the Employee's country is
deleted from the Country List after the date the Employee begins
employment with the Federal Reserve System, the Employee's existing
access to Class I or Class II FOMC information will not be affected by
the change in the Country List. Similarly, the Employee would continue
to be eligible for access to Class I information and may be granted
such access if he or she meets the remaining conditions outlined in
paragraph (c)(2)(i) for employees from a country on the Country List.
(3) Confidential Supervisory Information--(i) Access by a Non-
Citizen from a country on the Country List. An Employee in an Eligible
Position who is a Non-Citizen from a country that, on the date the
Employee begins employment with the Federal Reserve System or on the
date access is granted, is on the Country List shall be granted access
to Confidential Supervisory Information designated as Restricted-
Controlled FR only if the Employee:
(A) Has been recommended for such access by the Employee's Division
Director;
(B) Has been resident in the United States for at least six years,
at least two of which include satisfactory employment with the Board
and/or one or more of the Federal Reserve Banks; and
(C) Has completed a background investigation acceptable to the
Board.
(ii) Access by a Non-Citizen from a country not on the Country
List. An Employee in an Eligible Position who is a Non-Citizen from a
country that, on the date the Employee begins employment with the
Federal Reserve System and on the date access is granted, is not on the
Country List:
(A) Shall not be granted access to Confidential Supervisory
Information designated as Restricted-Controlled FR; and
(B) Shall be granted access to Confidential Supervisory Information
designated as Restricted FR only upon:
(1) The recommendation of the Employee's Division Director;
(2) Six years of residence in the United States, at least two of
which include satisfactory employment by the Board and/or one or more
of the Federal Reserve Banks; and
(3) Completion of a background investigation acceptable to the
Board.
(iii) Changes to the Country List. If the Employee's country is
deleted from the Country List after the date the Employee begins
employment with the Federal Reserve System, the Employee's existing
access to Confidential Supervisory Information designated as Restricted
FR or Restricted-Controlled FR will not be affected by the change in
the Country List. Similarly, the Employee would continue to be eligible
for access to Confidential Supervisory Information designated as
Restricted-Controlled FR information and may be granted such access if
he or she meets the remaining conditions outlined in paragraph
(c)(3)(i) for employees from a country on the Country List.
(4) Access to Sensitive Information by Reserve Bank employees--(i)
FOMC Information. A Reserve Bank employee will be granted access to
FOMC Information in accordance with the rules of the FOMC.
(ii) Confidential Supervisory Information. A Reserve Bank employee
will be granted access to Confidential Supervisory Information only to
the extent the employee meets all of the requirements for access to
Confidential Supervisory Information provided in this paragraph (c) and
the employee has
[[Page 44560]]
received approval for such access from the Board's Director for Banking
Supervision and Regulation. Notwithstanding the foregoing, this rule
does not affect access that has been granted to employees hired before
the effective date of this rule.
(5) Classified Information. Access to Classified Information is
limited to those persons who are permitted access to Classified
Information pursuant to the applicable executive orders and any
subsequent amendments or superseding orders that the President of the
United States may issue from time to time.
By order of the Board of Governors of the Federal Reserve
System, August 1, 2006.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E6-12732 Filed 8-4-06; 8:45 am]
BILLING CODE 6210-01-P