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.