Regulatory Alerts2012-03-22
Activity of a Banking Corporation in a Closed System
The Supervisor of Banks issued this directive to permit customers to open and manage accounts in a banking corporation other than their primary one without visiting a branch. The regulation mandates that funds must be transferred via e-banking and strictly returned to the original source account, prohibiting pledging or offsetting of these deposits. Banks are required to implement robust internal controls, adhere to specific identification and agreement protocols, and notify the Supervisor at least 60 days prior to offering these services.
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