We are located in one state. We wish to accept deposit account applications online from new customers from other sttes, should they so choose. I think there is no problem doing this as our documents will state our home base state law applies but....am I wrong about this? Do we have to be aware of each state's additional laws and regs....

Are you a state chartered bank or National chartered bank?

state chartered.

Cross state deposits usually do not present any such issues (lending to other state residents may present some issues). Appropriate CIP procedures would be my major concern.

I opened a savings account on line with one of the large banks, and they provided several different Reg CC notices, and Privacy Notices. Also, there is and FFIEC IT Examination Handbook titled "E-Banking" that helped me. Last, I would think your BSA/AML program would need to include this in your risk assessemnts.

Thanks for your helpful hints!

Trees, you'll can't just ignore the other state laws. For example, you must usually follow the unclaimed property laws of the state where your customer lives, however, if your home state has reciprocity agreements with other states it might make your job easier.

Also, different states have privacy breach disclosure laws related to their citizens. In other words, if you have a security breach requiring customer notification, you better make sure you're OK for each state where the affected customers live.

Homestar & others - thanks for the points to consider. I am trying so hard to have our folks limit accounts opened on line to our market (state). The more points we need to consider, and that I can show our peeps, the better. If you think of more, please let me know..