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#2055784 - 12/28/15 02:54 PM Reg D Monitoring
Bankwoman1 Offline
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Midwest
Just a quick question as to when the actual 12 month period ends when monitoring accounts for the Reg D excessive transactions. We currently monitor accounts daily and send letters out. We have 3 letters - 1 sent each month the customer goes over their limit in a month. My questions is this - say letter 1 is mailed in November 2014. Letter 2 is mailed in March 2015. The customer has not went over their limit again until today - December 28th 2015. Did their original 12 month timeframe expire in November 2015 (1 year after the first letter was sent) or do we continue on to March since that was when the 2nd letter was sent. I'm not sure whether I need to send them the 3rd letter or start a whole new 12 month period and send them letter # 1 again. I may be overthinking this but any help would be appreciated!

Thanks,
Lisa

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#2055786 - 12/28/15 03:13 PM Re: Reg D Monitoring Bankwoman1
Skittles Offline
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Posts: 13,957
TN
If you're using a rolling 12 month period then November 2015 would have been the twelve months from the initial. Now you have until March 2016 for the rolling 12 months. They will get the second letter again for this one.
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#2055791 - 12/28/15 03:31 PM Re: Reg D Monitoring Bankwoman1
Bankwoman1 Offline
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Posts: 743
Midwest
I was just talking to somebody else here in the bank and they stated that we have never used the rolling 12 month period that they know of. So I'm gathering from that, that we would send the 1st letter out again - thus starting a new 12 month period. Does it state anywhere that we have to use a rolling 12 month period or do we decide as a bank what our procedure is going to be??

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#2055793 - 12/28/15 03:43 PM Re: Reg D Monitoring Bankwoman1
rlcarey Offline
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Galveston, TX
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#2055814 - 12/28/15 05:04 PM Re: Reg D Monitoring Bankwoman1
Bankwoman1 Offline
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Joined: Dec 2015
Posts: 743
Midwest
So after reading the notes in the thread you provided am I safe to say that we are ok to continue doing our monitoring the way we are. Not in a "rolling" 12 month period - just monitoring an account for 3 offenses in a 12 month period beginning at the 1st offense? Unless of course there are many excessive transfers in a month or consecutive months then we should act on changing the account or closing the account. It can be very confusing and I believe we have been ok in past exams with the way we are doing our monitoring......but being new the position I just want to make sure I understand everything fully.

Thanks for all of your help!

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#2055833 - 12/28/15 06:16 PM Re: Reg D Monitoring Bankwoman1
rlcarey Offline
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Galveston, TX
just monitoring an account for 3 offenses in a 12 month period beginning at the 1st offense?

That is the definition of a rolling twelve months, is it not??
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#2055840 - 12/28/15 06:44 PM Re: Reg D Monitoring Bankwoman1
Bankwoman1 Offline
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Joined: Dec 2015
Posts: 743
Midwest
From everything I read.....yes that is the definition. I believe I was getting myself confused after reading the first response to my question which stated that I would re-send the 2nd letter and now have until March 2016. I am going to stick with the way we are doing things and leave it at that. My start date of the 12 month period will be the day the 1st letter was sent. I'm overthinking this way too much.

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