Federal bank regulatory agencies have released a guide to support community banks in managing risks presented by third-party relationships, a move aimed at preventing financial crimes and protecting consumers.
In a joint release, the Federal Deposit Insurance Corporation (FDIC), Federal Reserve Board, and Office of the Comptroller of the Currency (OCC) announced the guide, which offers potential considerations, resources, and examples through each stage of the third-party relationship. According to FDIC officials, community banks engage with third parties to help compete in and respond to an evolving financial services landscape.
However, these third-party relationships present varied risks that community banks are expected to identify, assess, monitor, and control. The guide highlights the importance of managing these risks to ensure that community banks operate in a safe and sound manner and in compliance with applicable laws and regulations.
The guide is not a substitute for the third-party risk management guidance issued by the agencies in June 2023, but rather a helpful resource for community banks. “Community banks engage with third parties to help compete in and respond to an evolving financial services landscape,” Julianne Fisher Breitbeil, an FDIC spokesperson, explained. “However, these third-party relationships present varied risks that community banks are expected to appropriately identify, assess, monitor, and control.”
According to the FDIC, the guide may be a valuable resource for community banks looking to develop and implement effective third-party risk management practices. The guide can help community banks navigate the complexities of third-party risk management and ensure that they are operating in compliance with applicable laws and regulations.
The release of the guide marks a significant step in the FDIC’s efforts to prevent financial crimes and protect consumers. By providing community banks with the tools and resources they need to manage third-party risks, the FDIC aims to promote a safer and more stable financial system.
For more information on the guide, contact Julianne Fisher Breitbeil at the FDIC at (202) 340-2043, Meg Nelson at the Federal Reserve Board at (202) 452-2955, or Anne Edgecomb at the OCC at (202) 649-6870.
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Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes
- Source: Official Source â†â€â€ÂÂ
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