Electronic Financial Services and Consumer Compliance
FIL-79-98 July 16, 1998
CHIEF EXECUTIVE OFFICER AND COMPLIANCE OFFICER
Interagency Guidance on Electronic Financial Services and Consumer Compliance
The Federal Financial Institutions Examination Council (FFIEC) has issued the attached
Guidance on Electronic Financial Services and Consumer Compliance. The guidance provides federally insured depository institutions with information on federal consumer protection laws and regulations, and their application to electronic financial service operations. It also seeks to promote compliance with the relevant consumer protection laws and regulations.
The guidance contains two sections:
"Compliance Regulatory Environment," which summarizes relevant sections of the federal consumer protection laws and regulations that address electronic financial services, and includes interim compliance policy guidance with practical examples for applying existing consumer laws and regulations; and
"The Role of Consumer Compliance
in Developing and Implementing Electronic Services," which
discusses the importance of compliance officer involvement in
the design, development, implementation and monitoring of
electronic banking operations.
Financial institutions should understand that existing federal consumer laws and regulations generally apply to advertisements, transactions and other services conducted electronically. Management is responsible for monitoring its electronic banking operations to ensure they comply with applicable laws, regulations and policies. Management should also take steps to ensure that its institution's compliance program is modified to account for the type and level of technology employed by the institution and changes in the regulations.
The attached interagency document is available on the Internet via the World Wide Web at /news/news/financial/ or http://www.ffiec.gov. For more information, please contact your Division of Compliance and Consumer Affairs regional office.
Distribution: FDIC-Supervised Institutions (Commercial and Savings)
Note: Paper copies of FDIC financial
institution letters may be obtained through the FDIC's Public
Information Center, 801 17th Street, NW, Room 100, Washington, DC
20434 (800-276-6003 or (703) 562-2200).