Is there a regulation that prohibits bank employees from accepting gifts from clients over $25.00? We have such a prohibition in our employee handbook, but we wanted to confirm whether any regulation established a dollar amount.

No, we are not aware of any federal or Illinois law or regulation that establishes a specific dollar limit on gifts from clients to bank employees. The limit is driven by your bank’s internal ethics policy.

Federal criminal law imposes stiff penalties on bank employees who accept anything of value “to be influenced or rewarded in connection with any business or transaction of such institution.” The Illinois criminal code similarly prohibits bank employees from accepting “any benefit from another person upon an agreement or understanding that such benefit will influence his or her conduct in relation to his or her employer's or principal's affairs.”

The FDIC’s guidelines for complying with the federal anti-bribery law state that a bank may specify appropriate exceptions to the general gift prohibition in the bank’s ethics policy. With respect to potential exceptions, the FDIC declined to establish “rules about what is reasonable or normal in fixed dollar terms” because the acceptable threshold could vary from one part of the country to another.

Also, we are not aware of any Illinois court cases or IDFPR guidance that address dollar limits on client gifts to bank employees. Consequently, in our view, pursuant to the FDIC guidance, it is up to banks to establish their own list of gift exceptions and their own dollar limitations in a way that will “embody the highest ethical standards.”

For resources related to our guidance, please see:

Federal Criminal Code, 18 USC 215(a) (“Whoever—(1) corruptly gives, offers, or promises anything of value to any person, with intent to influence or reward an officer, director, employee, agent, or attorney of a financial institution in connection with any business or transaction of such institution; or (2) as an officer, director, employee, agent, or attorney of a financial institution, corruptly solicits or demands for the benefit of any person, or corruptly accepts or agrees to accept, anything of value from any person, intending to be influenced or rewarded in connection with any business or transaction of such institutiondoes not exceed $1,000, shall be fined under this title or imprisoned not more than one year, or both.”)

Illinois Criminal Code, 720 ILCS 5/17-10.6(b)(2) (“An employee, agent, or fiduciary of a financial institution commits commercial bribery of a financial institution when, without the consent of his or her employer or principal, he or she knowingly solicits, accepts, or agrees to accept any benefit from another person upon an agreement or understanding that such benefit will influence his or her conduct in relation to his or her employer's or principal's affairs.”)

FDIC Guidelines For Compliance With The Federal Bank Bribery Law (“In its code of conduct, the insured state nonmember bank may, however, specify appropriate exceptions to the general prohibition of accepting something of value in connection with bank business.”)

FDIC Guidelines For Compliance With The Federal Bank Bribery Law (“Other exceptions to the general prohibition regarding acceptance of things of value in connection with bank business may include: (a) Acceptance of gifts, gratuities, amenities or favors based on obvious family or personal relationships (such as those between the parents, children or spouse of a bank official) where the circumstances make it clear that it is those relationships rather than the business of the bank concerned which are the motivating factors; (b) Acceptance of meals, refreshments, entertainment, accommodations or travel arrangements, all of reasonable value, in the course of a meeting or other occasion, the purpose of which is to hold bona fide business discussions or to foster better business relations, provided that the expense would be paid for by the bank as a reasonable business expense if not paid for by another party (the bank may establish a specific dollar limit for such an occasion(c) Acceptance of loans from other banks or financial institutions on customary terms to finance proper and usual activities of bank officials, such as home mortgage loans, except where prohibited by law; (d) Acceptance of advertising or promotional material of reasonable value, such as pens, pencils, note pads, key chains, calendars and similar items; (e) Acceptance of discounts or rebates on merchandise or services that do not exceed those available to other customers; (f) Acceptance of gifts of reasonable value that are related to commonly recognized events or occasions, such as a promotion, new job, wedding, retirement, holiday or birthday (the bank may establish a specific dollar limit for such an occasion(g) Acceptance of civic, charitable, educational, or religious organization awards for recognition of service and accomplishment (the bank may establish a specific dollar limit for such an occasion).”)

FDIC Guidelines For Compliance With The Federal Bank Bribery Law (“In issuing guidance under the statute in the area of business purpose entertainment or gifts, it is not advisable for the FDIC to establish rules about what is reasonable or normal in fixed dollar terms. What is reasonable in one part of the country may appear lavish in another part of the country. An insured state nonmember bank should seek to embody the highest ethical standards in its code of conduct. In doing this, an insured state nonmember bank may establish in its own code of conduct a range of dollar values which covers the various benefits that its bank officials may receive from those doing or seeking to do business with the bank.”)