A supplemental notice to the Federal Reserve’s May 2021 proposal on factors used by the Federal Reserve Banks when considering account and payment service requests is out for public comment until April 22.
The supplemental notice, published in Tuesday’s Federal Register, is designed to provide additional clarity on its approach. It said the latest action “invites comment on a new framework that builds upon the May 2021 proposal and would be used by Reserve Banks to evaluate all requests for accounts and services.”
The May 2021 proposed “Account Access Guidelines” outlined six principles for the Reserve Banks to consider when weighing a request. Generally, the principles require the requesting entity to be eligible to receive Fed services and that it cannot present “undue risk” to the Fed system or the financial system at large.
The supplemental notice, the Fed said, includes a new section of the proposed account access guidelines that would establish a tiered-review framework to provide additional clarity on the level of due diligence and scrutiny to be applied to requests for Reserve Bank accounts and services.