The countdown has begun for the July 1st, 2020 compliance date for the Reg. CC changes. You may recall late last year we published an article and our Regulatory Update series on the finally released changes to Reg. CC. If you haven’t already implemented the changes, now is the time to dust off our Reg. CC Implementation Checklist and make sure you are on track to comply. There are timing considerations with respect to notifications that must be provided and you will need to obtain Board approval for Policy changes. Below is a recap of the highlights.
Inflation Adjustment
Within the Dodd-Frank Wall Street Reform and Consumer Protection Act was a provision to amend the Expedited Funds Availability Act (aka Reg. CC) to adjust the dollar amount that must be made available for withdrawal with certain deposit transactions. The adjustment is based on inflation and adjusted every five (5) years. It will correspond with the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers. The annual adjustments will be rounded to the nearest multiple of $25 and will increase, but not decrease the amount that must be made available.
Be sure to consider the impact to account opening documents, Funds Availability Disclosures, Lobby Notices, Funds Availability Policy (will require Board approval), and procedure changes. Don’t forget upgrades to your teller and possibly core systems for holds, autogenerated notices and any manual forms and notices your tellers may complete. Also, you will need to provide notice to your customers regarding the change, as required. In addition, training will be key and any help references your frontline personnel use to calculate the correct amount to make available will need to be updated.
Definition – Expands to Additional Territories
The agencies also included changes to accommodate the EGRRCPA with regard to extending the coverage in the definition of “ATM”, “State” and “United States” to include American Samoa, the Commonwealth of the Northern Mariana Islands and Guam. Be sure to check your policy and disclosures to ensure any definitions referencing these terms are updated.
Reg. CC – Affects Reg. DD
Reg. DD contains references to Reg. CC. Technical changes are necessary to reflect the joint authority between the Bureau and the Board to issue regulations under certain provisions of Reg. CC- Expedited Funds Availability Act. The Bureau also took this as an opportunity to correct typographical errors in the APY and APYE calculations in Appendix A to Reg. DD.