Reg D Account Transfer Limit
By Fiserv
This DNAapp will stop any transfer or draw from any account if the draw account has reached it's Reg D limits.
This batch job will temporarily inactivate the draw relationships to other accounts if the draw account has reached or exceeded its Reg D limit for the month, thereby preventing further draw transfers from occurring. The relationship will be restored on the first of the following month when the job is run after month end processing. This batch job should be run once a day. This batch job can produce notices for the draw account owners that have exceeded the Reg D limit for the month.
Benefits
Regulation D allows a limited number (6) of third-party transactions to occur in a non-transaction account if the account is to maintain its savings account status. To comply, a financial institution must either manually monitor these transfers or prevent restricted transfers in excess of the prescribed number. If the institution elects to monitor transactions, and the transactions in excess of the prescribed limit become more than “occasional,” the institution must notify the customer. If any future restricted transactions occur in excess of the prescribed number, the account must be closed or its transfer and draft capabilities removed.
DNA® enables clients to manually monitor excessive Reg D transactions on non-transaction accounts “out-of-the-box” through RTXN exceptions, parameters and reports. And while this manual monitoring approach satisfies the needs of many clients, some institutions may prefer to automate Reg D compliance by automatically preventing restricted transfers in excess of the prescribed number – enter the Reg D Account Transfer Limit DNAapp (PS_REGD_DRAWS).
The Reg D Account Transfer Limit DNAapp helps automate the process of monitoring savings accounts so that they do not exceed the Regulation D number of allowable transfers set by the institution in a month. While this DNAapp is not required for Reg D compliance, it can help your institution save time through automation as well as reduce the likelihood of human error putting your institution out of compliance.
App Information
- Version
- 1.0.0.4 - Published August 2020
Support
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DNAapp Type: Batch Application
Developed with DNAcreator™
Technical Name - PS_REGD_DRAWS
DNAX File Name: ps_regd_draws.dnax
Note: As well as daily, it is important to run this application as soon as possible after end-of-month processing and Bump Date have successfully completed. This additional run is required to re-activate all draw relationships inactivated during the previous month by this application. You would want this to occur before any posting applications are run on the first of the month.