The federal banking agencies yesterday issued guidance on how financial institutions are to handle deposit discrepancies. The guidance reminds bankers that they either must adopt deposit reconciliation policies and procedures designed to avoid discrepancies or policies and procedures that are designed to resolve discrepancies “such that customers are not disadvantaged.” The agencies also advised financial institutions to ensure that deposit reconciliation is integrated into compliance management systems.
ABA has been communicating with the banking agencies about deposit discrepancy issues since the Citizens Bank consent agreements were published last August. ABA staff are working with the agencies in an effort to understand the guidance and ensure that supervisory expectations are clear, and will share information learned in a free, members-only webinar scheduled for June 2 at 3:00 pm EDT. Registration information will be published in Newsbytes early next week.
