Fed Finalizes Proposal Harmonizing Reg J, Reg CC

The Federal Reserve today finalized a proposal to harmonize Regulation J — which governs the collection of checks or other items by Federal Reserve banks and funds transfers through Fedwire — with Regulation CC, which implements the Expedited Funds Availability Act.

The final rule realigns Reg J with recent amendments to Reg CC, which updated the check collection framework to reflect a system that is now largely electronic. It also clarifies that financial messaging standards for Fedwire transfers do not confer or connote legal status or responsibilities with respect to Fedwire funds transfers.