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Financial Institution Letter

550 17th Street NW, Washington, DC 20429 Division of Supervision



TO: CHIEF EXECUTIVE OFFICER
SUBJECT: Basel Committee on Banking Supervision Seeks Comment on Consultative Paper on Customer Due Diligence for Banks

The Basel Committee on Banking Supervision (Basel Committee) is seeking comment on its consultative paper entitled Customer Due Diligence for Banks , issued on January 31, 2001. The paper is part of the Basel Committee's ongoing effort to strengthen risk-management procedures in banks throughout the world. As set forth in the paper, key elements for customer due diligence policies and procedures include customer acceptance, customer identification, ongoing monitoring of high-risk accounts and risk management.

The paper is available on the Bank for International Settlements' Web site at http://www.bis.org/publ/index.htm . Comments must be submitted to the Basel Committee by March 31, 2001, and should be sent to the Secretariat of the Basel Committee on Banking Supervision, Bank for International Settlements, CH-4002, Basel, Switzerland. FDIC-supervised institutions should also send copies of their comments to the Office of the Executive Secretary, Federal Deposit Insurance Corporation, 550 17th Street, NW, Washington, DC 20429.

For more information, please contact Vanessa Villalba, Assistant Director (202-898-6611), or Suzanne Williams, Review Examiner (202-898-6788), in the FDIC's Division of Supervision.

Michael J. Zamorski
Acting Director

Distribution: FDIC-Supervised Banks (Commercial and Savings)

NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).


FIL-13-2001

Last Updated: February 15, 2001