In a review of a bank's compliance with the Regulation O overdraft provisions, what should the compliance officer do?
In a review of a bank's compliance with the Regulation O overdraft provisions, what should the compliance officer do?
To properly review a bank's compliance with Regulation O overdraft provisions, the compliance officer should examine the bank's overdraft reports for a selected time period. This action directly addresses the specific concern of Regulation O regarding overdrafts. By scrutinizing these reports, the compliance officer can identify any instances of prohibited overdrafts involving directors, executive officers, or principal shareholders, thus ensuring compliance with the regulatory requirements.
B. Examine the bank's overdraft reports for a selected time period. This action directly targets the review of overdraft occurrences, which are a specific concern of Regulation O. By examining overdraft reports, a compliance officer can identify any prohibited overdrafts made on behalf of directors, executive officers, or principal shareholders, or their related interests, ensuring the bank's adherence to Regulation O's overdraft provisions.