[Federal Register Volume 62, Number 70 (Friday, April 11, 1997)]
[Notices]
[Pages 17817-17818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9335]


=======================================================================
-----------------------------------------------------------------------

FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL


Joint Policy Statement on Improper and Illegal Payments by Banks 
and Bank Holding Companies

AGENCIES: The Board of Governors of the Federal Reserve System (FRB), 
Federal Deposit Insurance Corporation (FDIC), and Office of the 
Comptroller of the Currency (OCC) (collectively the Agencies).

ACTION: Withdrawal of statement of policy.

-----------------------------------------------------------------------

SUMMARY: The Agencies are withdrawing their joint statement of policy 
entitled ``Joint Policy Statement Concerning Improper Payments by Banks 
and Bank Holding Companies'' (Statement of Policy) because it is no 
longer useful in the ongoing supervision of banks and bank holding 
companies. The Office of Thrift Supervision (OTS) which was not a party 
to the Statement of Policy, joins the Agencies in this action.

EFFECTIVE DATE: The removal of the Statement of Policy is effective 
April 11, 1997.

FOR FURTHER INFORMATION CONTACT:

    FRB: Jack Jennings, Assistant Director, Division of Banking 
Supervision & Regulation (202/452-3053), 20th and C Street, NW., 
Washington, D.C. 20551.
    FDIC: R. Eugene Seitz Review Examiner, Division of Supervision 
(202/898-6793), 550 Seventeenth Street, NW, Washington, D.C. 20429.
    OCC: Daniel Stipano, Director of Enforcement and Compliance, (202/
874-4800), 250 E Street, SW., Washington, D.C. 20219. OTS: Donna Deale, 
Senior Program Manager, Supervision Policy, (202/906-7488), 1700 G 
Street, NW., Washington, D.C. 20552.

SUPPLEMENTARY INFORMATION: The Agencies issued the Statement of Policy 
on January 13, 1978 (43 FR 2759, January 19, 1978) to announce that 
certain payments, improper and illegal political contribution, bribes, 
and kickback besides being a violation of the Foreign Corrupt Practices 
Act of 1977, Pub. L. 95-213, 91 Stat. 1494 (FCPA 1977), constitute 
unsafe and unsound banking practices.
    The Agencies have incorporated sufficient reference material to the 
FCPA 1977 in their respective examination manuals and do not routinely 
issue policy statements governing other criminal statutes related to 
banks and bank holding companies. As such, the Agencies are rescinding 
the Statement of Policy and believe that the information contained in 
the Statement of Policy is self-evident.
    The Agencies acknowledge that all banks, bank holding companies and 
subsidiaries thereof are expected not only to conduct their operations 
in accordance with applicable laws but also to refrain from making 
payments that may constitute unsafe and unsound banking practices. 
Where violations of law or unsafe and unsound banking practices result 
from improper payments, the appropriate agency will exercise its full 
legal authority, including cease-and-desist proceedings

[[Page 17818]]

and referral to the appropriate law enforcement agency for further 
action, to ensure that such practices are terminated. In appropriate 
circumstances, the fact that such payments have been made may reflect 
so adversely on an organization's management as to be a relevant factor 
in connection with the consideration of applications submitted by the 
organization.

The Agencies' Action

    The Agencies hereby withdraw the Statement of Policy.

    Dated at Washington, DC this 7th day of April 1997.

Federal Financial Institutions Examination Council
Joe M. Cleaver,
Executive Secretary.
[FR Doc. 97-9335 Filed 4-10-97; 8:45 am]
BILLING CODES 6210-01-P, 6720-01-P, 6714-01-P, and 4810-33-P