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BOARD OF GOVERNORS

OF THE

FEDERAL RESERVE SYSTEM

WASHINGTON, D.C. 20551

DIVISION OF SUPERVISION 

AND REGULATION

DIVISION OF CONSUMER AND

COMMUNITY AFFAIRS

SR 18-4 

CA 18-5 

June 29, 2018 

TO THE OFFICER IN CHARGE OF SUPERVISION

 AT EACH FEDERAL RESERVE BANK

SUBJECT: Policy Statement on Interagency Notification of Formal Enforcement Actions 

Applicability: This guidance applies to all Federal Reserve supervised financial institutions, 

including those with $10 billion or less in consolidated assets.

The Federal Financial Institutions Examination Council (FFIEC) rescinded its revised 

policy statement on Interagency Coordination of Formal Corrective Action by the Federal Bank 

Regulatory Agencies, dated February 20, 1997.1 The 1997 policy statement was created at a time 

when electronic communication was much less common and no longer reflects the current 

practices of the federal banking agencies in coordinating formal enforcement actions. For 

example, the formal enforcement actions taken by the federal banking agencies are published on 

the individual agencies’ public websites,2

 making it no longer necessary for the agencies to 

provide written notice of all such actions to each other. 

On June 12, 2018, the Federal Reserve, the Federal Deposit Insurance Corporation, and 

the Office of the Comptroller of the Currency (the federal banking agencies) issued a Policy 

Statement on Interagency Notification of Formal Enforcement Actions to replace the FFIEC’s 

1997 policy statement.3 The federal banking agencies issued this policy statement, which is also 

attached to this letter, to promote notification of, and coordination on, formal enforcement 

actions among the federal banking agencies at the earliest practicable date. 

 

1 See 62 Fed. Reg. 7782 (February 20, 1997) and 83 Fed. Reg. 27329 (Jun. 12, 2018). 

2 For enforcement actions against an entity supervised by the Federal Reserve, see 

https://www.federalreserve.gov/apps/enforcementactions/search.aspx. 

3 83 Fed. Reg. 27371 (Jun. 12, 2018).
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In accordance with the policy statement, Board staff is responsible for notifying the 

appropriate federal banking agency(ies) of a formal enforcement action against a Federal 

Reserve supervised institution that involves the interests of another federal banking agency. 

Therefore, Reserve Bank staff should contact Board staff on any questions concerning the 

coordination of an enforcement action with another federal banking agency. 

Reserve Banks are asked to distribute this letter to supervised institutions in their 

districts, as well as to appropriate supervisory and examination staff. Questions regarding this 

letter should be directed to Jason Gonzalez, Special Counsel, at (202) 452-3275 in the Board’s 

Legal Division. In addition, questions may be sent via the Board’s public website.4

Arthur Lindo Eric S. Belsky

Deputy Director Director

Division of Supervision Division of Consumer and

and Regulation Community Affairs

Attachments:

• Statement on Interagency Notification of Formal Enforcement Actions 

• Federal Register Notice

Supersedes:

• SR letter 97-5, “Policy Statement on Interagency Notification and Coordination of 

Enforcement Actions” 

 

4 See http://www.federalreserve.gov/apps/contactus/feedback.aspx.
Attachment to SR 18-4 / CA 18-5 

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Policy Statement on Interagency Notification of Formal Enforcement Actions

June 12, 2018 

The Federal Banking Agencies (FBAs)

1 are issuing this policy statement2

 to promote 

notification of, and coordination on, formal enforcement actions among the FBAs at the earliest 

practicable date. This statement replaces the existing policy statement3 to incorporate and reflect 

current practices and is not intended as a substitute for informal communication that routinely 

occurs among the FBAs in advance of an enforcement action, including verbal notification of 

pending enforcement matters to officials and staff with supervisory and enforcement 

responsibility for the affected institution.

When an FBA determines it will take a formal enforcement action against any federally 

insured depository institution, depository institution holding company, non-bank affiliate, or 

institution-affiliated party, it should evaluate whether the enforcement action involves the 

interests of another FBA. Examples of such interests include unsafe or unsound practices or 

significant violations of law by an insured depository institution, non-bank affiliate, or 

depository institution holding company or misconduct by an institution-affiliated party that may 

have significant connections with an institution regulated by another FBA. 

If it is determined that one or more other FBAs have an interest in the enforcement 

action, the FBA proposing the enforcement action should notify the other FBA(s). Notification 

should be provided at the earlier of the FBA’s written notification to the federally insured 

depository institution, depository institution holding company, non-bank affiliate, or institutionaffiliated party against which the FBA is considering an enforcement action or when the 

appropriate responsible agency official, or group of officials, determines that formal enforcement

action is expected to be taken. 

The scope of the information shared by the notification may depend on the gravity of the 

interests of the other FBA(s) and be determined on a case-by-case basis by the FBA providing 

the notification. The information shared, however, should be appropriate to allow the other 

FBA(s) to take necessary action in examining or investigating the financial institution or 

institution-affiliated party over which they have jurisdiction.

If two or more FBAs consider bringing a complementary action (e.g., action involving a 

bank and its parent holding company), those FBAs should coordinate the preparation, 

processing, presentation, potential penalties, service, and follow-up of the enforcement action. 

 

1

 The FBAs include the Board of Governors of the Federal Reserve System (Board); Federal Deposit Insurance 

Corporation (FDIC); and Office of the Comptroller of the Currency (OCC).

2 See 83 FR 27371 (Jun. 12, 2018). 

3 See 62 FR 7782 (Feb. 20, 1997).