Notice2021-28143
Notice of the FDIC's Response to Exception Requests Pursuant to Recordkeeping for Timely Deposit Insurance Determination
Primary source
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Published
December 28, 2021
Effective
December 20, 2021
Issuing agencies
Federal Deposit Insurance Corporation
Abstract
In accordance with its rule regarding recordkeeping for timely deposit insurance determination, the FDIC is providing notice that it has granted time-limited exception relief to two covered institutions from the information technology system and recordkeeping requirements applicable to official items (subject accounts) in order for those covered institutions to integrate certain information technology systems that hold the requisite information to calculate deposit insurance in accordance with part 370.
Full Text
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<title>Federal Register, Volume 86 Issue 246 (Tuesday, December 28, 2021)</title>
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[Federal Register Volume 86, Number 246 (Tuesday, December 28, 2021)]
[Notices]
[Pages 73766-73767]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-28143]
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FEDERAL DEPOSIT INSURANCE CORPORATION
Notice of the FDIC's Response to Exception Requests Pursuant to
Recordkeeping for Timely Deposit Insurance Determination
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Notice of the FDIC's response to exception requests pursuant to
the recordkeeping for timely deposit insurance determination rule.
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SUMMARY: In accordance with its rule regarding recordkeeping for timely
deposit insurance determination, the FDIC is providing notice that it
has granted time-limited exception relief to two covered institutions
from the information technology system and recordkeeping requirements
applicable to official items (subject accounts) in order for those
covered institutions to integrate certain information technology
systems that hold the requisite information to calculate deposit
insurance in accordance with part 370.
DATES: The FDIC's grant of exception relief is effective as of December
20, 2021.
FOR FURTHER INFORMATION CONTACT: Cassandra Knighton, Section Chief,
Division of Complex Institution Supervision and Resolution;
<a href="/cdn-cgi/l/email-protection#75363e1b1c121d011a1b3533313c365b121a03"><span class="__cf_email__" data-cfemail="de9d95b0b7b9b6aab1b09e989a979df0b9b1a8">[email protected]</span></a>; (972) 761-2802.
SUPPLEMENTARY INFORMATION: The FDIC granted a time-limited exception
request to two covered institutions pursuant to the FDIC's rule
entitled ``Recordkeeping for Timely Deposit Insurance Determination,''
codified at 12 CFR part 370 (part 370 or the Rule).\1\ Part 370
generally requires covered institutions to implement the information
technology system and recordkeeping capabilities needed to quickly
calculate
[[Page 73767]]
the amount of deposit insurance coverage available for each deposit
account in the event of failure. Pursuant to Sec. 370.8(b)(1), one or
more covered institutions may submit a request in the form of a letter
to the FDIC for an exception from one or more of the requirements of
part 370 if circumstances exist that would make it impracticable or
overly burdensome to meet those requirements. Pursuant to Sec.
370.8(b)(2), the FDIC publishes a notice of its response to each
exception request in the Federal Register. Pursuant to Sec.
370.8(b)(3), a covered institution may rely upon another covered
institution's exception request which the FDIC has previously granted
by notifying the FDIC that it will invoke relief from certain part 370
requirements and demonstrating that the covered institution has
substantially similar facts and circumstances to those of the covered
institution that has already received the FDIC's approval. The
notification letter must also include the information required under
Sec. 370.8(b)(1) and cite the applicable notice published pursuant to
Sec. 370.8(b)(2). Unless informed otherwise by the FDIC within 120
days after the FDIC's receipt of a complete notification for exception,
the exception will be deemed granted subject to the same conditions set
forth in the FDIC's published notice.
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\1\ 12 CFR part 370.
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These grants of relief will be subject to ongoing FDIC review,
analysis, and verification during the FDIC's routine part 370
compliance tests. The FDIC presumes each covered institution is meeting
all the requirements set forth in the Rule unless relief has otherwise
been granted. These grants of relief may be rescinded or modified upon:
Discovery of misrepresentation; material change of circumstances or
conditions related to the subject accounts; or failure to satisfy
conditions applicable to each. The following exceptions were granted by
the FDIC as of December 20, 2021.
I. Exception Relief for Additional Time To Integrate Information
Technology Systems That Contain the Requisite Information To Calculate
Deposit Insurance for Official Items
The FDIC granted time-limited exception relief from part 370's
information technology system requirements set forth in Sec. 370.3 and
recordkeeping requirements set forth in Sec. 370.4 applicable to
official items, as described in 12 CFR 370.4(c), for up to 18 months
after the compliance date. One covered institution requested exception
relief from the recordkeeping and information technology system
requirements with respect to interest payments made to customers via
official items and official items used in the accounts payable process
to remit vendor payments. The covered institution previously completed
system enhancements that provide the name, address, and amount of the
official items; however, the government identification number, where it
is available, is not immediately accessible by its part 370 calculation
system because the systems that create the payments are not connected
to the core deposit and accounts payable systems that store the
customer information. The covered institution requested exception
relief in order to develop, test, implement, and validate its planned
solution that requires it to source the government identification
number from the systems that contain customer information and provide
that data into the part 370 calculation system. The other covered
institution requested exception relief from the information technology
system and recordkeeping requirements for official items for which the
covered institution may have sufficient information to make a deposit
insurance calculation but does not have the capability to retrieve the
information or reliably tie it to the payee. The covered institution
does not currently have a method for tracing official items back to the
original loan or deposit servicing information technology systems in a
manner that would permit it to associate government identification
numbers, if available, with other payee information in the covered
institution's payment systems. The covered institution requested
exception relief in order to assess and implement a solution to this
issue that would seek to appropriately balance the requirements of the
Rule and consumer data security and other considerations.
As conditions of this exception relief, these covered institutions
must: Provide documentation that describes the process put in place to
manually calculate deposit insurance for the subject accounts in the
event of failure during the relief period; maintain the capability to
restrict access to the deposit accounts subject to this exception in
the event of failure until a deposit insurance determination can be
made and place all such accounts into the pending file of its part 370
output files during the relief period; submit a status report to
<a href="/cdn-cgi/l/email-protection#14647566602723245472707d773a737b62"><span class="__cf_email__" data-cfemail="e090819294d3d7d0a086848983ce878f96">[email protected]</span></a> at the midpoint of the exception relief period; and
immediately bring to the FDIC's attention any change of circumstances
or conditions.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, on December 20, 2021.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021-28143 Filed 12-27-21; 8:45 am]
BILLING CODE 6714-01-P
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