SUMMARY: The FDIC is amending its Statement of Policy on Bank Merger
Transactions to incorporate a recent statutory change to the Bank
Merger Act, as amended by the USA PATRIOT Act, which makes an insured
depository institution's effectiveness in combating money laundering a
factor in evaluating a proposed merger transaction.
EFFECTIVE DATE: July 23, 2002.
FOR FURTHER INFORMATION CONTACT: Kevin W. Hodson, Review Examiner (202/
898-6919), Division of Supervision and Consumer Protection; Robert C.
Fick, Counsel (202/898-8962), or Carl Gold, Counsel (202/898-8702),
Legal Division, FDIC, 550 17th Street, NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION: Section 327 of the USA PATRIOT Act (Pub. L.
107-56, enacted October 26, 2001) amends section 18(c) of the Federal
Deposit Insurance Act 12 U.S.C. 1828(c) (commonly known as the Bank
Merger Act), adding a new factor for consideration in deciding merger
transactions covered by the Bank Merger Act. The factor reads, ``In
every case, the responsible agency shall take into consideration the
effectiveness of any insured depository institution involved in the
proposed merger transaction in combating money laundering activities,
including in overseas branches.'' The amended statement of policy
essentially restates the USA PATRIOT Act requirement. No new
informational requirements relating to Bank Merger Act applications are
imposed at this time. Consideration of the new factor is required on
applications submitted after December 31, 2001. The FDIC is not
soliciting comment on the revised Statement of Policy. The amendment to
the Policy Statement, which was published at 63 FR 44761 on August 20,
1998, is effective immediately upon publication in the Federal
The Statement of Policy is hereby amended by adding a new paragraph
at the end of section III., to read as follows:
FDIC Statement of Policy on Bank Merger Transactions
* * * * *
III. Evaluation of Merger Applications
* * * * *
Anti-Money Laundering Record
In every case, the FDIC will take into consideration the
effectiveness of each insured depository institution involved in the
proposed merger transaction in combating money-laundering activities,
including in overseas branches. In this regard, the FDIC will consider
the adequacy of each institution's programs, policies, and procedures
relating to anti-money laundering activities; the relevant supervisory
history of each participating institution, including their compliance
with anti-money laundering laws and regulations; and the effectiveness
of any corrective program outstanding. The FDIC's assessment may also
incorporate information made available to the FDIC by the Department of
the Treasury, other Federal or State authorities, and/or foreign
governments. Adverse findings may warrant correction of identified
problems before consent is granted, or the imposition of conditions.
Significantly adverse findings in this area may form the basis for
denial of the application.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, this 12th day of July, 2002.