Press Release: FDIC Announces Extension of Comment Period for Deposit Insurance Recordkeeping Rule for Banks’ Third-Party Accounts
PRESS RELEASE | NOVEMBER 18, 2024
FDIC Announces
Extension of Comment Period for Deposit Insurance Recordkeeping Rule
for Banks’ Third-Party Accounts
WASHINGTON – The Federal
Deposit Insurance Corporation (FDIC) today announced a 45-day
extension to the public comment period for the FDIC’s proposed rule on
recordkeeping for custodial accounts. The proposal seeks to address
risks related to certain third-party arrangements, protect depositors,
and promote public confidence in insured deposits. Comments on the
proposal must be received by the FDIC no later than January 16,
2025.
On September 17, 2024, the FDIC announced a Notice of
Proposed Rulemaking (NPR) that would strengthen recordkeeping for bank
deposits received from third party, non-bank companies accepting those
deposits on behalf of consumers and businesses. The proposed rule
initially provided a 60-day comment period from when it was published
in the Federal Register, which was December 2, 2024.
Under the
proposed rule, FDIC-insured banks holding certain custodial accounts,
as defined in the proposal, would be required to take certain steps to
ensure accurate account records are maintained in order to determine
the individual owner of the funds, including a requirement to
reconcile the account for each individual owner on a daily basis.
These requirements, as well as others, apply if the bank uses a third
party to maintain records. The proposal’s provisions also provide for
oversight by the banks’ primary federal supervisor to review for
compliance with this rule and enforcement authority to compel
compliance if the bank fails to meet these requirements.
The
FDIC invites public comments on all aspects of the
proposal.
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Attachment: Notice of proposed rulemaking,
extension of comment period.
MEDIA CONTACT: Julianne
Breitbeil [email protected]
FDIC: PR-98-2024
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