We are planning to finalize a bank merger this weekend. We are also completing our biennial review process this week. I plan to use one Designation of Exempt Person form for both the biennial renewal and the bank name change. Can anyone think of any guidance regarding the use of one DEP form for dual purposes?

The instructions say:

Items 1 and 2: Check only one of the four boxes in these two items.

With the lack of other guidance, I would say unfortunately, you need two forms.

Not sure if this precisely fits your situation, but this is from my files and may help you some.

FinCEN was contacted about the proper method of handling the “Designation of Exempt Persons” when a bank merges with or acquires another institution and wishes to retain the exemptions previously granted by the acquired bank. FinCEN was also asked what date should be used as the “effective date of the exemption”, and if there is any alternative for the “biennial renewal” process that would allow the acquiring bank to keep all of its exemptions on the same biennial renewal schedule (either an early renewal or a delayed renewal).

The response was that when a bank merges with or acquires another bank, the acquiring bank must file a new “Designation of Exempt Person” form for each entity it wishes to retain as an exempt person. The acquiring bank does not have to maintain the acquired accounts for 12 months before the exemption can be granted. Since the exempted customers are new to the acquiring bank, the effective date of the exemption (for purposes of the form) should be the date of acquisition of the acquired bank or as a less desirable alternative, the date the form is completed and filed. The “Initial Designation” block should be checked on the form. (The date of acquisition would be best since that would cover all transactions from the acquired bank until the acquisition and the acquiring bank from the date of acquisition.) The acquiring bank does not have to file Designation of Exempt Person forms to revoke the exemptions of the acquired bank. They should simply be allowed to expire.

There is no alternative to the biennial renewal process that would allow early or late renewal. The biennial renewal must be done on March 15th of the second calendar year after the exemptions are granted.