BOARD OF GOVERNORS
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
DIVISION OF BANKING
SUPERVISION AND REGULATION
SR 92-21 (FIS)
July 7, 1992
TO THE OFFICER IN CHARGE OF SUPERVISION
AT EACH FEDERAL RESERVE BANK
SUBJECT: Interagency Agreement Relating to the Coordination of Major Criminal, Civil and Administrative Cases
Recent concerns regarding the coordination of major cases involving criminal, civil and administrative actions by the U.S. Department of Justice, other federal law enforcement agencies, and the financial institutions supervisory agencies, as well as concerns about the collection of court ordered fines and restitution, have resulted in the development of the attached interagency Policy Statement Regarding National Policy on Collection and Reporting Procedures For Restitution Payable to Financial Institution Regulatory Agencies (the "Coordination Policy"). The Coordination Policy was drafted by representatives of the various agencies comprising the Interagency Bank Fraud Working Group (the "Working Group"). It was then adopted by the Senior Interagency Group, the statutory parent organization of the Working Group, when the General Counsels of the bank and thrift regulatory agencies and senior representatives of several federal law enforcement agencies, including the Department of Justice, met on June 25, 1992.
The Coordination Policy addresses the problems associated with the coordination of major cases between the bank regulatory and law enforcement agencies. "Major cases" are defined in the Coordination Policy to include, among others, those criminal matters involving losses of more than $100,000 to financial institutions, or suspected illegal conduct by insiders, such as officers and directors. Under the terms of the Coordination Policy, there will be increased levels of communication between the Department of Justice and the various offices of the United States Attorney and the bank and thrift regulatory agencies. Representatives of federal law enforcement agencies should now be contacting the bank and thrift regulatory agencies in order to ensure that appropriate efforts are made to coordinate investigations and prosecutions, including identifying assets for eventual recoveries. Federal Reserve Banks and the regional offices of the other regulators will also be required to provide certain information concerning major cases to federal prosecutors in accordance with the provisions of the Coordination Policy. This information includes data on losses associated with criminal misconduct, investigatory information from grand juries under the provisions of section 3322 of Title 18 of the U.S. Criminal Code, and information pertinent to sentencing matters provided to the U.S. Probation Office. The interagency policy also focuses on the mechanisms that are needed to enhance the reporting of information about such cases and the collection of any fines or restitution ordered by federal courts and by the regulatory agencies during the course of their administrative enforcement efforts.
In order to ensure the Federal Reserve's compliance with the new Coordination Policy--most particularly the provisions relating to the coordination of major case investigations and prosecutions at the local levels between U.S. Attorneys and the appropriate Federal Reserve Banks--we would appreciate your Reserve Bank assigning an official contact person for the purposes of the Coordination Policy and providing us, by July 17, 1992, with the name of that individual. Information concerning the contact person should be sent to Richard A. Small, Special Counsel, Enforcement Section, Stop 175, at the Board. Once each Reserve Bank has identified its contact person, we will convene a conference call and start the process of developing our procedures to best effect the purposes of the Coordination Policy.
Please contact Mr. Small at (202) 452-5235, or me at (202) 452-2620 with any questions.
Herbert A. Biern
SR letters | 1992