Agency provides notice of exception requests for timely deposit insurance determination

A time-limited exception has been granted concerning information technology system and general recordkeeping requirements for certain accounts that require data cleanup, system updates, or customer outreach to make a deposit insurance determination under “timely deposit insurance determination” rules, according to filings Tuesday.

The Federal Deposit Insurance Corp. (FDIC), in a notice scheduled to be published Wednesday in the Federal Register, also stated that the time-limited exception would apply to information technology system requirements and general recordkeeping requirements for certain internal (work-in-process) accounts that require an additional 24 hours (48 hours in total) post failure to “obtain beneficial ownership information from internal business lines necessary to make a deposit insurance determination.”

Last year, the FDIC Board (with Member Martin Gruenberg dissenting) approved a rule giving covered institutions an option to seek a one-year extension of an April 1, 2020, compliance deadline of a regulation facilitating the prompt payment of FDIC-insured deposits when large insured depository institutions (IDIs) – those with 2 million or more deposit accounts – fail.

In its Register notice, the FDIC noted that grants of exception relief were effective as of May 28.

Notice of the FDIC’s Response to Exception Requests Pursuant to Recordkeeping for Timely Deposit Insurance Determination

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