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FDIC Releases its Formal and Informal Enforcement Actions Manual

Risk Management
December 2, 2019

Summary:

The FDIC posted its Formal and Informal Enforcement Actions Manual (manual) to its website to provide greater transparency regarding the FDIC's enforcement program. The manual provides direction for professional staff related to the work necessary to pursue formal and informal enforcement actions. Developed by the Division of Risk Management Supervision and the Division of Depositor and Consumer Protection, the manual is intended to support the work of field office, regional office, and Washington office staff involved in processing and monitoring enforcement actions.

Statement of Applicability to Institutions with Total Assets Under $1 Billion: This Financial Institution Letter transmits a manual intended to be used by FDIC personnel. No action on the part of any insured depository institution is necessary.

Highlights:

  • The manual provides instructions to FDIC staff who process formal and informal actions against insured depository institutions and their institution-affiliated parties.
  • The public release of the manual on FDIC.gov is intended to provide the banking industry and any other interested parties with transparency and clarity regarding the FDIC's enforcement action program.
  • The manual does not interpret any law or regulation. Rather, it supports FDIC staff in the application of relevant laws and regulations. Additionally, it provides instructions for development of enforcement actions in response to supervisory concerns, violations, and other actionable misconduct.
  • The manual does not establish supervisory requirements and is not industry guidance.
  • The manual includes the following 11 chapters:
    • Overview and Administrative Matters;
    • Informal Actions;
    • Unsafe or Unsound Practices and Conditions/Distinguishing Between Laws, Regulations, and Guidance;
    • Cease-and-Desist Actions;
    • Prompt Corrective Action;
    • Removal, Prohibition, and Suspension Actions;
    • Termination of Deposit Insurance;
    • Comparison of Prompt Corrective Actions and Section 8 Actions;
    • Restitution and Civil Money Penalties;
    • Section 39 Actions; and
    • Formal Investigations
  • The manual will be updated periodically for changes in laws, regulations, or processes.

Distribution:

  • FDIC-Insured Institutions

Suggested Routing:

  • Chief Executive Officer

Paper copies of FDIC FILs may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, Room E-1002, Arlington, VA 22226 (877-275-3342 or 703-562-2200).

Attachment(s)
Bank Examination Resources
FDIC Law, Regulations, and Related Acts
Risk Management Manual of Examination Policies
Consumer Compliance Examination Manual
Formal and Informal Enforcement Actions Manual

Last Updated: December 2, 2019