Regulatory Rounup: Recent Actions

YEAR-2000: The Federal Financial Institutions Examination Council issued year-2000 guidance on business-resumption contingency planning and on educating bank customers about the millennial bug. To be published soon.

DEPOSIT INSURANCE: The Federal Deposit Insurance Corp. created a six- month grace period for restructuring accounts following the death of a depositor. Published May 11. Effective July 1.

REGULATORY REVIEW: The FDIC revised its policy statement on the development and review of regulations. It now sets goals of increasing quality and effectiveness while minimizing burden. Published and effective May 7.

TRADE NAMES: Federal regulators advised banks and thrifts to make sure that customers recognize that branches, Internet sites, and other services using names other than the institution's corporate name are not separately insured. Published May 1. Effective July 1.

DERIVATIVES: The Exam Council streamlined guidance on management of derivatives investments. Published April 23. Effective May 26.

MONEY LAUNDERING: The Fed urged bank holding companies to make their own assessments of whether a suspicious activity occurred when filing money laundering reports. Banks should not rely solely on law enforcement agency requests for information. Published and effective April 14.

FED WIRE: The Fed has decided not to implement a plan to offer Fed Wire services from 12:30 a.m. to 6:30 p.m., saying it would be too costly. The Fed initially endorsed the expanded hours in 1994. Published and effective April 13.

YEAR-2000: The Exam Council issued guidance April 9 on testing year-2000 computer fixes. The council set a timetable for completing the various tests.

FHLB MEMBERSHIP: The Finance Board permitted small banks to count loans secured by farm or business properties toward the Home Loan Bank System's membership requirement if the properties include a permanent residence. Effective 30 days after publication in the Federal Register.

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