IBA Compliance Connection

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Due to renovations of our main office, we will be reducing the number of ATMs in our parking lot from two to one. Do we need to notify the Illinois Department of Financial and Professional Regulation (IDFPR) and/or the FDIC? Are we correct that an ATM is not considered a bank branch subject to branch closing procedures?

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Yes, you are correct that an automated teller machine (ATM) is not a bank branch. Further, we are not aware of any requirement to notify the IDFPR or your primary federal regulator when you remove an ATM.

For resources related to our guidance, please see:

  • Federal Deposit Insurance Act, 12 USC 1813(o) (“The term ‘domestic branch’ includes any branch bank, branch office, branch agency, additional office, or any branch place of business . . . at which deposits are received or checks paid or money lent. The term ‘domestic branch’ does not include an automated teller machine or a remote service unit.”)
  • Federal Deposit Insurance Act, 12 USC 1831r-1(e), (“This section [notice of branch closure requirements] does not apply with respect to (1) an automated teller machine . . . .”)