Skip to content

Customer Violates Reg D for a 3rd Time

Answered by: 

Question: 
When a customer violates Reg D for the third time, we take away whatever was abused; such as internet transfers, ACH etc. Can we give what we took away back to the customer or is it gone for good, or do we not take away something and just close the account? I'm not sure what is a best practice.
Answer: 

The best practice is to internally reclassify the account into a interest bearing DDA account. Then you never have to worry about it again. Other than that, it is purely a business decision.

First published on 08/25/2019

Filed under: 
Filed under compliance as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics