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MoFo Reenforcement The Enforcement Blog

OCC Guidance Suggests Flexibility for Third-Party Risk Management

Posted in Regulatory Developments

On June 7, 2017, the Office of the Comptroller of the Currency issued frequently asked questions that supplement the OCC’s 2013 guidance entitled “Third-Party Relationships: Risk Management Guidance.” The 2013 Bulletin sets forth the OCC’s expectation for banks’ due diligence and ongoing monitoring of third-party service providers, including enhanced diligence and monitoring for third parties that support critical activities. While the FAQs affirm this guidance, they provide substantial flexibility for banks to right-size their approach to third-party risk management, including with respect to banks’ financial technology partnerships. This alert highlights key aspects of the FAQs.

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