Subpart A—Minimum Security Procedures
Source:
83 FR 13842, Apr. 2, 2018, unless otherwise noted.
§ 326.0 Authority, purpose, and scope.
(a) This part is issued by the Federal Deposit Insurance Corporation (“FDIC”) pursuant to section 3 of the Bank Protection Act of 1968 (12 U.S.C. 1882). It applies to FDIC-supervised insured depository institutions. It requires each institution to adopt appropriate security procedures to discourage robberies, burglaries, and larcenies and to assist in identifying and apprehending persons who commit such acts.
(b) It is the responsibility of the institution's board of directors to comply with this part and ensure that a written security program for the institution's main office and branches is developed and implemented.
§ 326.1 Definitions.
For the purposes of this part—
(a) The term FDIC-supervised institution or institution means any entity for which the Federal Deposit Insurance Corporation is the appropriate Federal banking agency pursuant to section 3(q) of the Federal Deposit Insurance Act, 12 U.S.C. 1813(q).
(b) The term banking office includes any branch of an institution and, in the case of an FDIC-supervised insured depository institution; it includes the main office of that institution.
(c) The term branch for an institution chartered under the laws of any state of the United States includes any branch institution, branch office, branch agency, additional office, or any branch place of business located in any state or territory of the United States, District of Columbia, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Northern Mariana Islands or the Virgin Islands at which deposits are received or checks paid or money lent. In the case of a foreign bank defined in § 347.202 of this chapter, the term branch has the meaning given in § 347.202 of this chapter.
(d) The term State savings association has the same meaning as in section (3)(b)(3) of the Federal Deposit Insurance Act, 12 U.S.C. 1813(b)(3).
[83 FR 13842, Apr. 2, 2018, as amended at 85 FR 3246, Jan. 21, 2020]
§ 326.2 Designation of security officer.
Upon the issuance of Federal deposit insurance, the board of directors of each institution shall designate a security officer who shall have the authority, subject to the approval of the board of directors, to develop, within a reasonable time, but no later than 180 days, and to administer a written security program for each banking office.
§ 326.3 Security program.
(a) Contents of security program. The security program shall:
(1) Establish procedures for opening and closing for business and for the safekeeping of all currency, negotiable securities, and similar valuables at all times;
(2) Establish procedures that will assist in identifying persons committing crimes against the institution and that will preserve evidence that may aid in their identification and prosecution; such procedures may include, but are not limited to:
(i) Retaining a record of any robbery, burglary, or larceny committed against the institution;
(ii) Maintaining a camera that records activity in the banking office; and
(iii) Using identification devices, such as prerecorded serial-numbered bills, or chemical and electronic devices;
(3) Provide for initial and periodic training of officers and employees in their responsibilities under the security program and in proper employee conduct during and after a robbery, burglar or larceny; and
(4) Provide for selecting, testing, operating and maintaining appropriate security devices, as specified in paragraph (b) of this section.
(b) Security devices. Each institution shall have, at a minimum, the following security devices:
(1) A means of protecting cash or other liquid assets, such as a vault, safe, or other secure space;
(2) A lighting system for illuminating, during the hours of darkness, the area around the vault, if the vault is visible from outside the banking office;
(3) An alarm system or other appropriate device for promptly notifying the nearest responsible law enforcement officers of an attempted or perpetrated robbery or burglary;
(4) Tamper-resistant locks on exterior doors and exterior windows that may be opened; and
(5) Such other devices as the security officer determines to be appropriate, taking into consideration:
(i) The incidence of crimes against financial institutions in the area;
(ii) The amount of currency or other valuables exposed to robbery, burglary, and larceny;
(iii) The distance of the banking office from the nearest responsible law enforcement officers;
(iv) The cost of the security devices;
(v) Other security measures in effect at the banking office; and
(vi) The physical characteristics of the structure of the banking office and its surroundings.
§ 326.4 Reports.
The security officer for each institution shall report at least annually to the institution's board of directors on the implementation, administration, and effectiveness of the security program.
Subpart B—Procedures for Monitoring Bank Secrecy Act Compliance
§ 326.8 Bank Secrecy Act compliance.
(a) Purpose. This subpart is issued to assure that all FDIC-supervised institutions as defined in 12 CFR 326.1 establish and maintain procedures reasonably designed to assure and monitor their compliance with the requirements of subchapter II of chapter 53 of title 31, United States Code, and the implementing regulations promulgated thereunder by the Department of Treasury at 31 CFR Chapter X.
(b) Compliance procedures —
(1) Program requirement. Each institution shall develop and provide for the continued administration of a program reasonably designed to assure and monitor compliance with recordkeeping and reporting requirements set forth in subchapter II of chapter 53 of title 31, United States Code, and the implementing regulations issued by the Department of Treasury at 31 CFR Chapter X. The compliance program shall be written, approved by the institution's board of directors, and noted in the minutes.
(2) Customer identification program. Each institution is subject to the requirements of 31 U.S.C. 5318(l) and the implementing regulation jointly promulgated by the FDIC and the Department of the Treasury at 31 CFR 1020.220.
(c) Contents of compliance program. The compliance program shall, at a minimum:
(1) Provide for a system of internal controls to assure ongoing compliance;
(2) Provide for independent testing for compliance to be conducted by institution personnel or by an outside party;
(3) Designate an individual or individuals responsible for coordinating and monitoring day-to-day compliance; and
(4) Provide training for appropriate personnel.
[85 FR 3246, Jan. 21, 2020]
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Regarding the concepts mentioned in the article you provided, let's break them down and discuss each one:
Subpart A—Minimum Security Procedures
This subpart refers to the security procedures that FDIC-supervised insured depository institutions are required to adopt to discourage robberies, burglaries, and larcenies, as well as to assist in identifying and apprehending individuals who commit such acts. The responsibility for compliance with these procedures lies with the institution's board of directors.
§ 326.0 Authority, purpose, and scope
This section states that the part is issued by the Federal Deposit Insurance Corporation (FDIC) under the authority of the Bank Protection Act of 1968. It applies to FDIC-supervised insured depository institutions and requires them to develop and implement a written security program for their main office and branches.
§ 326.1 Definitions
This section provides definitions for terms used in the part. For example, it defines "FDIC-supervised institution" as any entity for which the FDIC is the appropriate Federal banking agency, and "banking office" as including any branch of an institution.
§ 326.2 Designation of security officer
This section states that each institution, upon the issuance of Federal deposit insurance, must designate a security officer who has the authority to develop and administer a written security program for each banking office.
§ 326.3 Security program
This section outlines the contents of the security program that each institution must have. The program should establish procedures for opening and closing for business, safekeeping of valuables, identifying persons committing crimes, and training employees. It should also include the selection, testing, operation, and maintenance of appropriate security devices.
§ 326.4 Reports
This section requires the security officer of each institution to report annually to the institution's board of directors on the implementation, administration, and effectiveness of the security program.
Moving on to the next part mentioned in the article:
Subpart B—Procedures for Monitoring Bank Secrecy Act Compliance
This subpart focuses on the compliance procedures related to the Bank Secrecy Act (BSA). It requires FDIC-supervised institutions to establish and maintain procedures to assure and monitor their compliance with the recordkeeping and reporting requirements set forth in the BSA and its implementing regulations.
§ 326.8 Bank Secrecy Act compliance
This section states that each institution must develop and administer a program to assure and monitor compliance with the recordkeeping and reporting requirements of the BSA. The program should include internal controls, independent testing, designated individuals responsible for compliance, and training for personnel.
These are the main concepts discussed in the article you provided. If you have any specific questions or need further information on any of these topics, feel free to ask!
