To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
The federal bank and thrift regulatory agencies are requesting comment on a proposal to implement section 216 of the Fair and Accurate Credit Transactions Act of 2003. While not imposing significant additional burden, the proposed rules would make amendments to include this new statutory requirement in the Interagency Guidelines Establishing Standards for Safeguarding Customer Information.
The proposed rules add a new definition of "consumer information" and would require each financial institution to develop, implement and maintain appropriate measures to properly dispose of such information derived from consumer reports to address the risks associated with identity theft. Each institution would be required to implement these measures as part of its information security program.
The proposal would take effect three months after a final rule is adopted. Comments are requested on or before July 23, 2004. Access the Federal Register notice for details on submitting comments.
Legal and Compliance Risk Department