I have just been notified by Bill Hood at the ABA that John Byrne has recieved notification from Treasury that Banks will not be required to comply with the §326 CIP provisions by 10/25.The communication states:
"ABA has been asked by several bank agencies and the Treasury Department to alert our members that the implementation date for Section 326 (Account Opening Verification) will NOT be October 26, 2002 but a "reasonable" period of time to be determined shortly.

We realize that an official announcement and a specific time frame is needed and we hope to get that information soon."

Leslie

You just made my day!

OCC is on site at our bank conducting a compliance exam. They also received notification today that they can alleviate our stress by letting us know that there will be a delay in the issuance of the final rule and that, YES, we will then also be given a reasonable time period to implement. IT IS TRUE!!!!!!!

The power of the comment letter.

WHOOOOOOOAAAAAAA! I have a board meeting to go to next Tuesday morning and it will be good to relay the good news!

OCC received notification of such this fact. Yes, yes, yes. As Andy says, the power of comment letters!

In reply to:

---

As Andy says, the power of comment letters!

---

Oh - I can only hope they read my comment letter seriously when I outlined a structure for the issuance and format of the "government lists" as follows:

1. A standard procedure for communicating the existence of new lists or updates to existing lists.

2. Uniform format of information on the lists in order to facilitate the use in automatic software screening programs.

3. The distribution of the list to verified and/or certified vendors to allow efficient transmission of the list via a secure channel.

Bonnie:

You go!

Yes, Virginia, there is a Santa Claus.

I consider this great news the best birthday present I could get today!!

Congratulations to all that wrote comment letters. What a powerful tool (that doesn't get used as often as it should). Now, let's go write those RESPA comment letters!

I just received this in the Washington Weekly. What are your thoughts?
Customer Identification Deadline

Treasury is working hard to meet the October 25 statutory deadline for issuing final rules regarding Customer Identification Programs (CIP) required by the USA PATRIOT Act. But, unlike some provisions of the USA PATRIOT Act, the statute does not establish a compliance date for CIPs whether or not rules have been issued. Many banks mistakenly believe that compliance is mandated by October 25. The banking regulators have asked Treasury to issue a formal announcement to clear up this misunderstanding.

The ICBA has been assured by federal banking regulators that the final rule, when issued, will incorporate a transition period to allow banks time to implement appropriate compliance procedures. However, until a final rule has been issued, any program or system that is installed based on the proposed rule will likely have to be changed. Moreover, the banking agencies are unlikely to issue examination procedures until a final regulation is in place. Banks with questions about the new customer identification requirements can contact their primary federal regulator or the ICBA.

Excellent news to kick off our three day weekend!!!!!

You bet!

Tina,
i agree with the article - how can financial institutions be expected to put procedures in place without knowing what those procedures will entail? Of course we will be given an "honeymoon" period in whaich to implement. I know the ABA asked for a year, but I would be happy if it could be the end of January. What people are confued about is that the ACT states the REGULATIONS must be written by 10/25 - not that it has to be in place by then. This is the regulator's deadline - not ours.
What REALLY hacks me off are vendors who are trying to make a buck off this mistaken beleif that banks have to be in compliance by 10/25. For example, I recieved the follwing from a well known compliance vendor:

"... Get XXXXX's new electronic CIP Toolkit!
As you likely know, Customer Identification Program (CIP) regulations may not be finalized until late October...just when your institution's CIP needs to be finalized as well!"

To me this kind of marketing is CRAP! First of all, we don't have to be in compliance by 10/25, and secondly - how do they know any more about what is going to be written in the new regulations than the rest of us?

OKAY - see what you did! You got me on my soapbox again! (I have three little Bears in my office that are "See no evil, hear no evil, and speak no evil. My boss says I need a fourth - POST no evil!)
Leslie

That is what we've been hearing and saying, before they said it 2 days ago. It only makes sense that we can't comply and they can't examine us until the final rules are out.

My question is now, when will the Reg be out. Initially I thought they were still going for 10-25, but now it sounds like they plan to miss that date.

3-Day Weekend!!! Good for you. Our bank is open on Monday.

Three day weekend? That must be nice. We have to work Monday.

You won't be alone. We're also open.

Leslie, I agree with you. I have, sitting on my desk, four letters from another well known vendor which read "Are you ready for October 26?". These hit the bank today and every department brought their's to me. I have told the vendor many times that I will let them know if I am interested in their product. Hopefully, I won't need it!

I learned a lesson when I very first began to work in compliance. It was around 87-88, I don't remember exactly which Reg was being implmented/changed but I let a salesman from a very well known forms company talk me into buying some kind of useless forms before those Regs (whatever they were) were final. Spent a good deal of the banks money and ended up throwing out all those forms. To this day, I'm slow (probably too slow) on putting things into place until Regs are final.

Why??????????????????

Why do we have to work? If ANYONE in town is open so are we! One day last winter it iced but we, one of the few banks around, were open! It took me about 1 and 1/2 hours to go the 11 miles from my house to work but we were open!

Here is a link to a press release that the Treasury Dept. had on their web site. It indicates that we will not have to comply with section 326 of the USA Patriot Act or the proposed rules issued on July 23rd until final implementing regulations are issued and become effective. They said that the comment letters revealed substantial issues that the Treasury and federal functional regulators are analyzing as a final rule is prepared. They will provide us with a reasonable amount of time in which to come into compliance.

http://www.treas.gov/press/releases/po3530.htm

I know the feeling all to well Our bank is only closed for New Years, 4th of July, Memorial Day, Labor Day, Thankgiving Day and Christmas Day.