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February 26, 2020 | Legal Update

On February 24, the FDIC’s technology lab (FDiTech) released “Conducting Business with Banks: A Guide for Third Parties,” a new six-page guide designed to help fintechs and other companies partner with banks. The FDIC’s stated goal is to help third parties understand the regulatory environment in which banks operate and to highlight the requirements unique to the banking industry. 

Any fintech or other company seeking to partner with a bank should review the new guide. Importantly, the guide lays out in detail the risk assessment and due diligence processes that banks undertake when considering working with third parties. Ultimately, the guide underscores the federal bank regulators’ expectations that banks implement and maintain robust and comprehensive due diligence and ongoing monitoring frameworks for all third-party relationships.

This update is for information purposes only and should not be construed as legal advice on any specific facts or circumstances. Under the rules of the Supreme Judicial Court of Massachusetts, this material may be considered as advertising.