Topic: Record Retention
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How long should we retain records for customer payroll processing through the ACH system?
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FinCEN’s Bank Secrecy Act regulations require you to retain deposit account statements for five years after they are created. The NACHA rules require participating depository financial institutions to “retain a Record of each Entry for six years from the date the Entry was Transmitted, except as otherwise expressly provided in these Rules.” Finally, the period…
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We are looking for guidance on how long we should retain closed files. This would include paid off loans, closed DDA accounts, denials, etc. Is there a general timeframe that can be used conservatively to cover all regulatory requirements (5 years, 7 years, etc.)? We would like to implement something across the board.
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We do not recommend using a one general timeframe for all types of closed files. Record retention requirements vary widely depending on many factors, including the type of document, when the document was created, why the document was created or collected, and any number of other criteria. Some documents, such as certain trust or custodial…
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We came across two vehicle titles previously held as collateral for a paid-off loan. The address and phone numbers we have on file for the borrowers are no longer accurate. Because the titles are not the physical property — only proof of ownership — do they escheat to the state? If not, how long are we required to hold onto these titles?
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Under the Illinois Vehicle Code, when a lender receives a payoff of a vehicle loan, the lender must deliver a release and the certificate of title to the owner within 21 days (or 10 business days if the payoff was made with cash or a certified or cashier’s check). The statute prescribes a $150 fine…
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What is the retention period for documents and forms of identification relating to customers we have done a signature guarantee for?
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We are not aware of any law that directly addresses the retention period for documents related to signature guarantees. However, a signature guarantee creates unique, direct liability on the part of the bank that may warrant permanent retention. Under the Illinois Uniform Commercial Code, the guarantee of a signature of an indorser of a security…
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How long should we retain guardianship documents that we requested from customers to open checking and savings accounts after the accounts have been closed?
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We recommend retaining the guardianship documents for five years after the accounts have been closed or become dormant. FinCEN’s Bank Secrecy Act rules require banks to retain any identifying information required by their Customer Identification Program (CIP) for five years after the account is closed or becomes dormant. If the guardianship documents were not required…
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Are there any Illinois laws related specifically to document retention as to trust or wealth management documents?
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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. The general rule under Illinois law is that electronic versions of documents have “the…
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For how long we should keep the monthly default reports that we submit to Freddie Mac?
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We are not aware of any retention requirements imposed by Freddie Mac for the monthly default reports. Because Freddie Mac does permit you to correct errors on the reports, you may wish to retain a copy of submitted reports until you have had a chance to review for errors and submit an exception report correcting…
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How long should we retain the dormant account notices that we mail to the customer? What about the rest of the dormant account documentation? Do we need to retain that documentation permanently?
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No, you do not need to retain dormant account documentation permanently. The Uniform Disposition of Unclaimed Property Act requires the holder of a dormant account to retain records for five years after the account is presumed abandoned, which generally occurs after five years of inactivity. We believe the five-year record retention requirement also applies to…
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What is the record retention timeframe for forms that bankers complete under Regulation GG to affirm that a business customer is not engaging in an internet gambling business?
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We recommend that you retain all information and documentation collected pursuant to Regulation GG for five years after the account is closed or becomes dormant. While Regulation GG is distinct from any other regulatory framework, and we are not aware of any specific record retention timeframes for Regulation GG, we believe it would be prudent…
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We are scanning our loan documents while also saving paper copies of everything. Our file room is overflowing, and we would like to start shredding. What needs to be saved in paper form from a loan file (real estate or consumer)?
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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. You should retain copies of records that confer title, including negotiable instruments conferring title (such…