Topic: Regulation CC
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We want to set our in-office deposit cut-off time as the closing time at each of our branches. The earliest a branch closes is 3:00 p.m., and the latest a branch closes is 5:30 p.m. Can we disclose our in office cut-off time as 5:30 p.m., which is the latest that any of our offices close? The Regulation CC commentary states that if a bank does not have a cut-off time prior to its closing time, the bank need not disclose a cut-off time. Under this language, do we even need to disclose our various cut-off times, or do we have to disclose each office’s individual cut-off time?
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We believe that you should disclose the earliest cut-off time, which in this case would be 3 p.m. You are correct that the Official Commentary to Regulation CC states that “if a bank does not have a cut-off time prior to its closing time, the bank need not disclose a cut-off time.” However the Commentary…
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Currently our deposit cut-off time is 3:00 p.m. for in office deposits and 9:00 p.m. for internet and mobile banking deposits, which is disclosed in our Regulation CC disclosures. Soon, we will be installing a teller capture system, and we are considering using each bank’s individual closing time as the cut-off time for that particular bank. Can we disclose our in office cut-off time as 5:30 p.m., which is the latest that any of our offices close? Or do we have to disclose each office’s individual cut-off time?
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We recommend disclosing the actual cut-off time for each location. Regulation CC permits your bank to set different deposit cut-off times for different locations and for different types of deposits. However, your disclosures should accurately reflect your institution’s practices, and it would not be accurate to state that 5:30 p.m. is the cut-off time for…
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What kind of notice or signs should we provide if we will not be accepting cash deposits in our newest branch?
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We are not aware of any Illinois or federal laws that require signage or notices to customers that a branch does not accept cash deposits. However, for customer service purposes, it may be prudent to post signs at any deposit taking areas (such as teller windows and ATMs) to warn customers about the policy. We…
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What areas of compliance training are required for new hires? Is there a time frame that the training must be completed?
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Illinois law requires that new employees at financial institutions receive training regarding the financial exploitation of older adults within six months of their hire date and every three years after that. This requirement applies only to employees who have direct customer contact. In addition, there are several federal regulations and guidances that require compliance training…
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Does Regulation CC apply to checks deposited via mobile banking?
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No, the current language in Regulation CC does not encompass mobile check deposits. Mobile deposits occur when a customer takes a picture of a check and transmits the image electronically to their bank. This process is referred to as remote deposit capture (RDC). We spoke with an attorney at the Federal Reserve Board who confirmed…
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We suspect that a customer is kiting checks. We would like to send him a “warning” letter to see if the activity stops. How should we outline our concerns without accusing the customer of illegal activity?
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First, we note that because you can identify the customer suspected of check kiting, you are required to file a suspicious activity report if the suspected violation or pattern of violations aggregates $5,000 or more. In addition, because you suspect that your customer is engaged in check kiting, you have reasonable cause to place a…
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Currently, we reconcile all deposit discrepancies. Our consultants have recommended that we establish a $5 threshold for reconciling out-of-balance deposits. Is that an acceptable threshold? What if we apply the threshold only when the error is in the customer’s favor?
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We believe that you should resolve all deposit discrepancies that could harm a consumer, without applying a $5 threshold. We read the Interagency Guidance on Deposit Reconciliation Practices as recommending that banks resolve all deposit discrepancies that would harm consumers. The guidance does not sanction applying a threshold before reconciling a deposit discrepancy; in fact,…
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Can we place a reasonable cause hold when a customer deposits a check and comes into the bank the next day to request a cashier’s check or wire transfer from the deposited funds? Would such a hold be permissible under Regulation CC?
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Whether you have reasonable cause to doubt the collectability of a customer’s deposited checks and to place a hold on those funds is a highly fact-specific question. “Reasonable cause” requires facts that would cause a well-grounded belief in the mind of a reasonable person. There is no bright-line rule for what constitutes reasonable cause. Therefore,…
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Do we need to provide a funds availability disclosure for savings accounts?
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No, you are not required to provide a funds availability notice for a savings account, because Regulation CC does not apply to saving accounts. Unless your account agreement (or disclosures) provide that the bank will comply with Regulation CC, a Reg CC funds availability notice is not required. For resources related to our guidance, please…
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Are we required to make $200 available to a customer on the next business day if one of the Regulation CC exception holds applies?
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The requirement to make the first $200 of a deposit available on the next business day following a deposit applies only when imposing a large deposit hold (over $5,000). If you are imposing one of the other Regulation CC exception holds — for new accounts, redeposited checks, repeated overdrafts, reasonable cause to doubt collectibility, or…