Does Regulation CC apply to remote deposit capture?

The vendor responded that Reg CC only applies to mobile remote deposit capture; it does not apply to commercial remote deposit capture. Section 229.34(f), as amended, spells out the new indemnity provisions for duplicate deposits involving remote deposit capture.

Is remote deposit capture high risk?

Risks associated with fraud are not unique to RDC; however, certain aspects of fraud risk are elevated in an RDC environment. Access by customers and their staffs to nonpublic personal information contained on, or represented by, deposit items may also increase the risk of identity theft.

What regulation covers remote deposit capture?

The Federal Reserve has revised Regulation CC so that financial institutions accepting deposits through mobile deposit have protection if they use a “restrictive indorsement.” Basically, if an endorsement on a RDC deposit is done in a way to prevent duplicate deposits, the financial institution that accepted the RDC …

What does remote deposit capture mean?

RDC allows financial institution customers to “deposit” checks electronically at remote locations, usually in the customers’ offices, for virtually instant credit to their account. Paper checks are digitally scanned, and an image of the check is electronically transmitted to the customer’s bank.

Do mobile deposits fall under Reg CC?

Mobile deposits are NOT subject to the funds availability rules of Regulation CC (aka Subpart B), but they are subject to the check collection rules of Regulation CC (aka Subpart C). While you have some latitude, we generally recommend making mobile deposits available similar to paper checks.

Does Reg CC require all checks to be endorsed?

Understanding Regulation CC Regulation CC is designed to require financial institutions to correctly process endorsed checks. Unpaid checks are also required to be immediately returned to the paying bank.

How does remote deposit capture work?

Remote deposit capture works by digitally scanning paper checks and uploading an image of the check to the customer’s bank. While RDC was initially only available to those who had a scanner, it is now widely available to anyone with a smartphone. Customers can deposit checks at any hour and any day of the week.

Is trade finance considered high risk?

Also, because trade finance can be more document-based than other banking activities, it can be susceptible to documentary fraud, which can be linked to money laundering, terrorist financing, or the circumvention of OFAC sanctions or other restrictions (such as export prohibitions, licensing requirements, or controls).

What is CC Reg hold?

Regulation CC (“Reg Double C”) A federal banking regulation regarding the availability of funds and collection of checks,Reg CC sets limits for the length of time a financial institution may place a hold on the use of funds after a check has been deposited to an account.

What type of accounts are covered by Reg CC?

Regulation CC applies to all credit unions, but it only applies to transaction accounts. Non- transaction accounts, such as most credit union regular share accounts or membership accounts, are not governed by Reg CC. So Regulation CC does not apply to savings accounts; only to checking or share draft accounts.

How long does remote check deposit take?

In many cases, your bank makes funds available to you within one business day (although you’ll occasionally face holds).

Does Reg CC apply to electronic deposits?

Regulation CC states when deposits of various types must be made available to your customers, measured in business days following the banking day on which the deposit is made. (Under other rules, funds for most electronic deposits are made available on the day of deposit.)

What does cc mean in Reg CC for banking?

Remote deposit capture (RDC) is a system that allows a customer to scan checks remotely and transmit the check images to a bank for deposit, usually via an encrypted Internet connection. When the bank receives a check image from the customer, it posts the deposit to the customer’s account and makes the funds available based upon…

What is remote deposit capture (RDC)?

remote deposit capture (RDC) Share this item with your network: What is remote deposit capture (RDC)? Remote deposit capture (RDC) is a system that allows a customer to scan checks remotely and transmit the check images to a bank for deposit, usually via an encrypted Internet connection.

What is Remote Deposit Capture service?

Remote deposit capture (RDC) is a service offered by banks that allows bank clients to remotely post and clear bank checks by sending a scanned image of the check via a secure Internet connection from their office or home without having to physically travel to the bank.