Topic: Record Retention
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We want to convert our open loan files from paper to electronic files. We currently convert closed loan files to electronic files and we have a document checklist on naming conventions for the file names and method of storage. We would like to develop procures for electronically storing our active loan files as well. Where should we begin?
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Overall, our recommendation is to pick a date on which your bank will begin scanning new loan files into your electronic storage system, rather than attempting to convert all of your existing open loan files at once. We polled our internal IBA Compliance Division Advisory Committee on best practices for electronic document conversion of open…
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Our bank is preparing to allow customers to use electronic signatures to open accounts and make changes to accounts in all areas of our bank, including deposits, loans, and trusts. Is there any reason to continue to obtain a customer’s wet ink signature on a signature card? Are wet ink signatures required for mortgage documents or for certification of beneficial ownership forms? Also, is there a method of identification authentication for customers opening accounts using electronic signatures that is better than other methods when it comes to catching synthetic identity fraud?
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. As a general rule, we believe your bank may accept a customer’s electronic signature on…
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Where can I find the most current email record retention requirements for banks?
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We are not aware of any retention requirements that apply specifically to emails, outside of the SEC rules for broker-dealers discussed below. Rather, as noted in OCC guidance, the retention period for a given email depends on its content, not the fact that it is an email. There are SEC rules for broker-dealers that pertain…
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What are the record retention requirements for closed safe deposit box agreements?
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. We are not aware of any specific legal requirement that applies to the retention of…
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Our bank has an internal messaging platform that is used for internal communications only. We currently archive these messages, but the platform is predominantly used for non-business-related communications. We would like to turn off the archiving feature so that the messages are automatically deleted. We also would train our employees not to use the messaging platform for any business-related communications. Is there any guidance on the deletion of employee instant messages?
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Yes, guidance issued by the OCC in 2016 discourages the permanent deletion of messages transmitted over internal chat and messaging platforms. The guidance reminds OCC-supervised banks that the use of chat and messaging platforms that allow for the permanent deletion of transmitted messages “conflicts with OCC expectations of sound governance, compliance, and risk management practices…
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What are the record retention rules for lock boxes in Illinois, including customer’s statements, logs, and any other type of information related to the lock box? Also, what are the record retention requirements for email, either between bank staff and customers, or internally among bank staff related to a transaction?
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. We are not aware of any specific legal requirements in Illinois that apply to the…
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Regarding safe deposit box access records, is there any requirement in Illinois to keep the original paper document with the customer’s signature once we confirm that a scanned copy has been saved to our system?
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. No, there are no mandatory retention periods for original safe deposit box access records when…
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We recently signed an agreement to purchase two bank branches. The selling bank has agreed to provide us with two years’ worth of documents related to the acquired accounts. However, we are aware that Illinois law requires some documents to be retained for seven years. Are there any special exceptions to record retention requirements that apply to branch acquisitions? What are our record retention obligations for these acquired accounts?
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We are not aware of any special record retention exceptions that apply when acquiring branches from another institution. As such, we believe your bank will be held to the same record retention requirements as if it had originated the acquired accounts. There are several record retention provisions that will require more than two years’ worth…
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What are the retention requirements for deposit and loan rate sheets?
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We recommend retaining deposit and loan rate sheets for at least two years, subject to the exception below. Both Regulation DD and Regulation Z generally require a two-year retention period for required disclosures made in connection with deposit accounts and consumer credit, respectively. However, for a mortgage loan secured by a dwelling that includes prepayment…
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We record our collection calls and authorizations for one-time ACH loan payments. Are there any specific Illinois laws that would govern the record retention relating to recorded collection calls?
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We recommend retaining ACH authorizations for two years, as required by Regulation E and the NACHA Operating Rules. We are not aware of any record retention requirements applicable to recordings of collection calls. While Illinois law does require customer consent before recording such calls, it does not set any time period for retaining the call…