The Federal Deposit Insurance Corporation (FDIC) is set to tighten the reins on bank record-keeping, with a proposed rule targeting third-party accounts. The FDIC Board of Directors has approved a notice of proposed rulemaking aimed at bolstering recordkeeping for bank deposits from non-bank companies on behalf of consumers and businesses.
“This rule is crucial for ensuring transparency and accountability in the banking system,” said FDIC Chairman Martin J. Gruenberg. “It will help protect depositors by ensuring banks can identify the actual owners of third-party accounts and provide access to their funds even if a third party fails.”
The proposed rule mandates that FDIC-insured banks maintain accurate account records for custodial accounts, often holding thousands of individuals’ funds together. Banks must reconcile each individual owner’s account daily, using third parties if necessary. The oversight extends to the bank’s primary federal supervisor, who has the power to enforce compliance.
“The FDIC has a long history of addressing risks related to third-party deposit relationships,” said Gruenberg. “This proposed rule is another step in that effort.”
The FDIC has taken several actions recently to address these risks, including issuing guidance on bank-fintech arrangements and launching awareness campaigns. However, the new rule will significantly enhance recordkeeping requirements.
Public comments on the proposal are invited within 60 days of publication in the Federal Register. The FDIC’s efforts to secure a more transparent and protected banking system continue with this proposed rule.
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Key Facts
- Agency: FDIC
- Category: Financial Crime|Regulation & Compliance
- Source: Official Source ↗
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