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Federal Register Publications

FDIC Federal Register Citations



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FDIC Federal Register Citations

[Federal Register: April 11, 1997 (Volume 62, Number 70)]

[Notices]

[Page 17817-17818]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr11ap97_dat-77]

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FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL

 

Joint Policy Statement on Improper and Illegal Payments by Banks

and Bank Holding Companies

AGENCIES: The Board of Governors of the Federal Reserve System (FRB),

Federal Deposit Insurance Corporation (FDIC), and Office of the

Comptroller of the Currency (OCC) (collectively the Agencies).

ACTION: Withdrawal of statement of policy.

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SUMMARY: The Agencies are withdrawing their joint statement of policy

entitled ``Joint Policy Statement Concerning Improper Payments by Banks

and Bank Holding Companies'' (Statement of Policy) because it is no

longer useful in the ongoing supervision of banks and bank holding

companies. The Office of Thrift Supervision (OTS) which was not a party

to the Statement of Policy, joins the Agencies in this action.

EFFECTIVE DATE: The removal of the Statement of Policy is effective

April 11, 1997.

FOR FURTHER INFORMATION CONTACT:

FRB: Jack Jennings, Assistant Director, Division of Banking

Supervision & Regulation (202/452-3053), 20th and C Street, NW.,

Washington, D.C. 20551.

FDIC: R. Eugene Seitz Review Examiner, Division of Supervision

(202/898-6793), 550 Seventeenth Street, NW, Washington, D.C. 20429.

OCC: Daniel Stipano, Director of Enforcement and Compliance, (202/

874-4800), 250 E Street, SW., Washington, D.C. 20219. OTS: Donna Deale,

Senior Program Manager, Supervision Policy, (202/906-7488), 1700 G

Street, NW., Washington, D.C. 20552.

SUPPLEMENTARY INFORMATION: The Agencies issued the Statement of Policy

on January 13, 1978 (43 FR 2759, January 19, 1978) to announce that

certain payments, improper and illegal political contribution, bribes,

and kickback besides being a violation of the Foreign Corrupt Practices

Act of 1977, Pub. L. 95-213, 91 Stat. 1494 (FCPA 1977), constitute

unsafe and unsound banking practices.

The Agencies have incorporated sufficient reference material to the

FCPA 1977 in their respective examination manuals and do not routinely

issue policy statements governing other criminal statutes related to

banks and bank holding companies. As such, the Agencies are rescinding

the Statement of Policy and believe that the information contained in

the Statement of Policy is self-evident.

The Agencies acknowledge that all banks, bank holding companies and

subsidiaries thereof are expected not only to conduct their operations

in accordance with applicable laws but also to refrain from making

payments that may constitute unsafe and unsound banking practices.

Where violations of law or unsafe and unsound banking practices result

from improper payments, the appropriate agency will exercise its full

legal authority, including cease-and-desist proceedings

[[Page 17818]]

and referral to the appropriate law enforcement agency for further

action, to ensure that such practices are terminated. In appropriate

circumstances, the fact that such payments have been made may reflect

so adversely on an organization's management as to be a relevant factor

in connection with the consideration of applications submitted by the

organization.

The Agencies' Action

The Agencies hereby withdraw the Statement of Policy.

Dated at Washington, DC this 7th day of April 1997.

Federal Financial Institutions Examination Council

Joe M. Cleaver,

Executive Secretary.

[FR Doc. 97-9335 Filed 4-10-97; 8:45 am]

BILLING CODES 6210-01-P, 6720-01-P, 6714-01-P, and 4810-33-P

Last Updated 04/11/1997 regs@fdic.gov

Last Updated: August 4, 2024