OCC Bulletin 2021-40

In 2021, the OCC issued Bulletin 2021-40 which provides information relating to six common areas of due diligence discussed in existing supervisory guidance. This guide was published by the OCC, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the agencies) to provide community banks with information that may be relevant when conducting due diligence on financial technology companies.

The guide is designed for community banks. Although the guide discusses community bank relationships with fintech companies, the content may be useful for banks of any size and for other types of third-party relationships.

“Engaging a third party does not diminish a bank’s responsibility to operate in a safe and sound manner and to comply with applicable legal and regulatory requirements, including federal consumer protection laws and regulations, just as if the bank were to perform the service or activity itself.”

“During due diligence, a community bank collects and analyzes information to determine whether third-party relationships would support its strategic and financial goals and whether the relationship can be implemented in a safe and sound manner, consistent with applicable legal and regulatory requirements.”