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
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
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,
[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