- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-06-08T13:50:00
U.S. banking regulators on Tuesday combined to issue final guidance on managing the risks of third-party relationships that replaces the previous documentation each agency released individually.
The Federal Reserve Board, Federal Deposit Insurance Corporation (FDIC), and Treasury Department’s Office of the Comptroller of the Currency (OCC) cited their desire for promoting consistency and clearly articulating risk-based principles for third-party risk management in publishing the 68-page document. The guidance supersedes previous iterations put forward by the Fed in 2013, FDIC in 2008, and OCC in 2013.
The guidance, which is directed at all supervised banks, “states that sound third-party risk management takes into account the level of risk, complexity, and size of the banking organization and the nature of the third-party relationship.” The agencies cited an increase in the number and type of banks’ third-party relationships, including with financial technology (fintech) partners, as a driver behind the new documentation.
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The Federal Deposit Insurance Corporation, Federal Reserve Board, and Office of the Comptroller of the Currency combined to provide guidance on third-party risk management focused on the unique risks faced by community banks in their third-party relationships.
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