The Federal Deposit Insurance Corporation (the "FDIC") has detailed rules relating to account identification and recordkeeping in order to facilitate the determination of who is entitled to FDIC insurance payments in the event of the failure of an insured institution. Accordingly, insured institutions are required to collect and maintain the information necessary to allow the FDIC to promptly determine who is entitled to deposit insurance coverage. The FDIC also has additional requirements for insured institutions with more than 2 million deposit accounts. The information and recordkeeping requirements applicable to these large insured institutions include specific guidelines for maintaining the information necessary to allow the FDIC to promptly determine the deposit insurance coverage of each of their depositors, including assigning unique identifiers to each account holder, any beneficial owner that is not also the account holder for the applicable deposits, and each grantor and beneficiary for certain applicable accounts, and these large insured institutions are required to maintain IT systems capable of calculating the FDIC insurance available to each depositor based on the FDIC's deposit insurance rules. The additional requirements for large institutions were introduced in November 2016, and the FDIC recently announced changes designed to address issues raised during the implementation process. These changes include an optional one year extension to the original compliance deadline of April 1, 2020 and a 24-month grace period to return to compliance following a merger transaction as well as technical modifications and updates to alternative record keeping requirements for certain institutions and accounts.

The FDIC also recently announced an update to the requirements to establish joint ownership of a deposit account (and therefore qualify for separate FDIC insurance coverage) applicable to all FDIC-insured institutions. Previously, each co-owner was required to complete a deposit account signature card (commonly referred to as the "signature card requirement"). The FDIC will now allow the signature card requirement to be satisfied and joint-ownership to be established based on information included in the deposit account records that demonstrates access or usage by each co-owner. Certificates of deposit will remain exempt from the signature card requirement under the revised rule.

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Originally published in REVERSEinquiries: Volume 2, Issue 7.
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