To All Depository Institutions and Others Concerned
in the Second Federal Reserve District:
The federal bank and thrift regulatory agencies have issued final rules to implement a special post-employment restriction on certain senior examiners employed by an agency or Federal Reserve Bank, as required by the Intelligence Reform and Terrorism Prevention Act of 2004.
The final rules are effective on December 17, 2005.
Under the final rules, if an examiner serves as the senior examiner for a depository institution or depository institution holding company for two or more months during the examiner's final twelve months of employment with an agency or Federal Reserve Bank, the examiner may not knowingly accept compensation as an employee, officer, director, or consultant from that institution or holding company, or from certain related entities.
The restriction applies for one year after leaving the employment of the agency or Reserve Bank. If an examiner violates the one-year restriction, the act requires the appropriate federal banking agency to seek an order of removal and industrywide prohibition for up to five years or a civil money penalty of up to $250,000.
The agencies' final rules are substantively similar and vary slightly to reflect differences in the supervisory programs and jurisdictions of the agencies.
Margaret Elizabeth Brush
Resource and Logistics Management