PART 325-INTRODUCTORY

§ 325.0 Scope.

The regulations and statements of general policy contained in this subchapter are promulgated pursuant to the provisions of the Federal Deposit Insurance Act and are published pursuant to subchapter II of chapter 5 of title 5, United States Code, and other applicable laws, and, in accordance with the provisions of section 552(a) (1) (D) of title 5, United States Code, contain rules adopted as authorized by law and statements of general policy or interpretations formulated and adopted by the Corporation for the guidance of the public.

326.7 Penalty provision. Appendix A-Minimum Standards for Security Devices.

Appendix B-Proper Employee Conduct During and After a Robbery.

AUTHORITY: The provisions of this Part 326 issued under sec. 3, 82 Stat. 295. Interpret or apply secs. 1-5, 82 Stat. 294, 295; 12 U.S.C. 1881nt-1884.

SOURCE: The provisions of this Part 326 appear at 34 F.R. 618, Jan. 16, 1969, unless otherwise noted.

§ 326.0 Scope of part.

Pursuant to the authority conferred upon the Federal Deposit Insurance

Corporation by section 3 of the Bank Protection Act of 1968 (82 Stat. 295), the regulations contained in this part

(a) Establish minimum standards with which each insured State nonmember bank must comply with respect to the installation, maintenance, and operation of security devices and procedures to discourage robberies, burglaries, and larcenies and to assist in the identification and apprehension of persons who commit such acts;

(b) Establish time limits within which each such bank shall comply with such standards; and

(c) Require the submission of reports with respect to the installation, maintenance, and operation of security devices and procedures.

For the purposes of this part

(a) The term "insured State nonmember bank" means any bank (including any mutual savings bank), incorporated under the laws of any State of the United States, any territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, that is not a member of the Federal Reserve System but the deposits of which are insured in accordance with the provisions of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1811-1832), but the term does not include any bank located in the District of Columbia.

(b) The term "banking hours" means the time during which a banking office is open for the normal transaction of business with the banking public.

(c) The term "banking office" includes the main office or any insured State nonmember bank and any branch thereof.

(d) The term "branch" includes any branch bank, branch office, branch agency, additional office, or any branch place of business located in any State of the United States or in any territory of the United States, Puerto Rico, Guam,

American Samoa, or the Virgin Islands at which deposits are received or checks paid or money lent.

(e) The term "Board of Directors" means the Board of Directors of the Federal Deposit Insurance Corporation.

(f) The term "teller's station or window" means a location in a banking office at which bank customers routinely conduct transactions with the bank which involve the exchange of funds, including a walkup or drive-in teller's station or window.

[34 FR 618, Jan. 16, 1969, as amended at 36 FR 3112, Feb. 18, 1971]

§ 326.2

Designation of security officer.

On or before February 15, 1969, or within 30 days after the bank becomes a member of the Federal Deposit Insurance Corporation, the board of directors of each insured State nonmember bank shall designate an officer or other employee of the bank who shall be charged, subject to supervision by the bank's board of directors, with responsibility for the installation, maintenance, and operation of security devices and for the development and administration of a security program which equal or exceed the standards prescribed by this part. § 326.3

Security devices.

(a) Installation, maintenance, and operation of appropriate security devices. Before January 1, 1970, or within 30 days after the bank becomes a member of the Federal Deposit Insurance Corporation, the security officer of each insured State nonmember bank, under such directions as shall be given him by the bank's board of directors, shall survey the need for security devices in each of the bank's banking offices and shall provide for the installation, maintenance, and operation, in each such office, of

(1) A lighting system for illuminating, during the hours of darkness, the area around the vault, if the vault is visible from outside the banking office;

(2) Tamper-resistant locks on exterior doors and exterior windows designed to be opened;

(3) An alarm system or other appropriate device for promptly notifying the nearest responsible law enforcement officers of an attempted or perpetrated robbery or burglary; and

(4) Such other devices as the security officer, after seeking the advice of law enforcement officers, shall determine to be appropriate for discouraging rob

beries, burglaries, and larcenies and for assisting in the identification and apprehension of persons who commit such acts.

(b) Considerations relevant to determining appropriateness. For the purposes of subparagraph (4) of paragraph (a) of this section, considerations relevant to determining appropriateness include, but are not limited to

(1) The incidence of crimes against the particular banking office and/or against financial institutions in the area in which the banking office is or will be located;

(2) The amount of currency or other valuables exposed to robbery, burglary, or larceny;

(3) The distance of the banking office from the nearest responsible law enforcement officers and the time required for such law enforcement officers ordinarily to arrive at the banking office;

(4) The cost of the security devices; (5) Other security measures in effect at the banking office; and

(6) The physical characteristics of the banking office structure and its surroundings.

(c) Implementation. It is appropriate for banking offices in areas with a high incidence of crime to install many devices which would not be practicable because of costs for small banking offices in areas substantially free of crimes against financial institutions. Each insured State nonmember bank shall consider the appropriateness of installing, maintaining, and operating security devices which are expected to give a general level of bank protection at least equivalent to the standards described in Appendix A of this part. In any case in which (on the basis of the factors listed in paragraph (b) of this section or similar ones, the use of other measures, or the decision that technological change allows the use of other measures judged to give equivalent protection) it is decided not to install, maintain, and operate devices at least equivalent to these standards, the bank shall preserve in its records a statement of the reasons for such decision. § 326.4 Security procedures.

gram to protect each of its banking offices from robberies, burglaries, and larcenies and to assist in the identification and apprehension of persons who commit such acts. The security program shall be reduced to writing, approved by the bank's board of directors, and retained by the bank in such form as will readily permit determination of its adequacy and effectiveness.

(b) Contents of security programs. Such security programs shall

(1) Provide for establishing a schedule for the inspection, testing, and servicing of all security devices installed in each banking office; provide for designating the officer or other employee who shall be responsible for seeing that such devices are inspected, tested, serviced, and kept in good working order; and require such officer or other employee to keep a record of such inspections, testings, and servicings;

(2) Require that each banking office's currency be kept at a reasonable minimum and provide procedures for safely removing excess currency;

(3) Require that the currency at each teller's station or window be kept at a reasonable minimum and provide procedures for safely removing excess currency and other valuables to a locked safe, vault, or other protected place;

(4) Require that the currency at each teller's station or window include "bait" money, i.e., used Federal Reserve notes the denominations, banks of issue, serial numbers, and series years of which are recorded, verified by a second officer or employee, and kept in a safe place;

(5) Require that all currency, negotiable securities, and similar valuables be kept in a locked vault or safe during nonbusiness hours, that the vault or safe be opened at the latest time practicable before banking hours, and that the vault or safe be locked at the earliest time practicable after banking hours;

(6) Provide, where practicable, for designation of a person or persons to open each banking office and require him or them to inspect the premises, to ascertain that no unauthorized persons are present, and to signal other employees that the premises are safe before permitting them to enter;

(7) Provide for designation of a person or persons who will assure that all security devices are turned on and are operating during the periods in which such devices are intended to be used;

(8) Provide for designation of a person or persons to inspect, after the closing hour, all areas of each banking office where currency, negotiable securities, or similar valuables are normally handled or stored in order to assure that such currency, securities, and valuables have been put away, that no unauthorized persons are present in such areas, and that the vault or safe and all doors and windows are securely locked; and

(9) Provide for training, and periodic retraining, of employees in their responsibilities under the security program, including the proper use of security devices and proper employee conduct during and after a robbery, in accordance with the procedures listed in Appendix B of this part.

§ 326.5 Filing by insured State nonmember banks of reports with the Corporation.

(a) Compliance reports. As of the last business day in June of 1970, and as of the last business day in June of each calendar year thereafter, each insured State nonmember bank shall file with the Regional Director of the Federal Deposit Insurance Corporation Region in which its main office is located a statement certifying to its compliance with the requirements of this part. The statement shall be dated and signed by the president, or cashier, or other managing officer of the bank and may be in a form substantially as follows:

I hereby certify, to the best of my knowledge and belief, that this bank has developed and administers a security program that equals or exceeds the standards prescribed by 326.4 of the rules and regulations of the Federal Deposit Insurance Corporation; that such security program has been reduced to writing, approved by the bank's board of directors, and retained by the bank in such form as will readily permit determination of its adequacy and effectiveness; and that the bank security officer, after seeking the advice of law enforcement officers, has provided for the installation, maintenance, and operation of appropriate security devices, as prescribed by § 326.3 of the rules and regulations of the Federal Deposit Insurance Corporation, in each of the bank's banking offices.

(b) Records of consultation. The bank's files shall contain a readily available record showing the name(s) and title(s) of the law enforcement officer (s) whose advice the security officer sought prior to the installation, maintenance, and operation of appropriate security devices.

(c) Reports on security devices. On or before March 15, 1969, and upon such other occasions as the Board of Directors may specify, each insured State nonmember bank shall file with the Regional Director of the Federal Deposit Insurance Corporation Region in which it is located a report on Form P-1 (in duplicate) for each of its offices that is subject to this part.

(d) External crime reports. Each time a robbery, burglary, or nonbank employee larceny is perpetrated or attempted at a banking office operated by an insured State nonmember bank, the bank shall, within a reasonable time, file a report in conformity with the requirements of Form P-2. One copy of such report shall be filed with the appropriate State supervisory authority and three copies of such report shall be filed with the Regional Director of the Federal Deposit Insurance Corporation Region in which the main office of the reporting bank is located.

(e) Special reports. Each insured State nonmember bank shall file such other reports as the Board of Directors or its designee may require.

134 FR 618, Jan. 16, 1969, as amended at 36 FR 1248, Jan. 27, 1971]

§ 326.6 Corrective action.

Whenever the Board of Directors or its designee determines that the security devices or procedures used by an insured State nonmember bank are deficient in meeting the requirements of this part, or that the requirements of this part should be varied in the circumstances of a particular banking office, it may take or require the bank to take necessary corrective action. If the Board of Directors or its designee determines that such corrective action is appropriate or necessary, the bank will be so notified and will be furnished a statement of what the bank must do to comply with the requirements of this part.

§ 326.7 Penalty provision.

Pursuant to section 5 of the Bank Protection Act of 1968 (82 Stat. 295), an insured State nonmember bank that violates any provision of this part shall be subject to a civil penalty not to exceed $100 for each day of the violation.

APPENDIX A-MINIMUM STANDARDS FOR
SECURITY DEVICES

In order to assure realization of maximum performance capabilities, all security devices utilized by a bank should be regularly in

spected, tested, and serviced by competent persons. Actuating devices for surveillance systems and robbery alarms should be operable with the least risk of detection by unauthorized persons that can be practicably achieved.

(1) Surveillance systems.-(1) General. Surveillance systems should be:

(A) Equipped with one or more photographic, recording, monitoring, or like devices capable of reproducing images of persons in the banking office with sufficient clarity to facilitate (through photographs capable of being enlarged to produce a one-inch vertical head-size of persons whose images have been reproduced) the identification and apprehension of robbers or other suspicious persons; (B) Reasonably silent in operation; and (C) So designed and constructed that necessary services, repairs or inspections can readily be made. Any camera used in such a system should be capable of taking at least one picture every 2 seconds and, if it uses film, should contain enough unexposed film at all times to be capable of operating for not less than 3 minutes, and the film should be at least 16mm.

(11) Installation and operation of surveillance systems providing surveillance of other than walk-up or drive-in teller's stations or windows. Surveillance devices for other than walk-up or drive-in teller's stations or windows should be:

(A) Located so as to reproduce identifiable images of persons either leaving the banking office or in a position to transact business at each such station or window; and

(B) Capable of actuation by initiating devices located at each teller's station or window.

(111) Installation and operation of surveillance systems providing surveillance of walk-up or drive-in teller's stations or windows. Surveillance devices for walk-up or drive-in teller's stations or windows should be located in such a manner as to reproduce identifiable images of persons in a position to transact business at each such station or window and areas of such station or window that are vulnerable to robbery or larceny. Such devices should be capable of actuation by one or more initiating devices located within or in close proximity to such station or window. Such devices may be omitted in the case of a walk-up or drive-in teller's station or window in which the teller is effectively protected by a bullet-resistant barrier from persons outside the station or window. However, if the teller is vulnerable to larceny or robbery by members of the public who enter the banking office, the teller should have access to a device to actuate a surveillance system that covers the area of vulnerability or the exits to the banking office.

(2) Robbery and burglary alarm systems— (1) Robbery alarm systems. A robbery alarm system should be provided for each banking office at which the police ordinarily can arrive within 5 minutes after an alarm is actuated; all other banking offices should be pro

vided with appropriate devices for promptly notifying the police that a robbery has occurred or is in progress. Robbery alarm systems should be:

(A) Designed to transmit to the police, either directly or through an intermediary, a signal (not detectable by unauthorized persons) indicating that a crime against the banking office has occurred or is in progress;

(B) Capable of actuation by initiating devices located at each teller's station or window (except walk-up or drive-in teller's stations or windows in which the teller is effectively protected by a bullet-resistant barrier and effectively isolated from persons, other than fellow employees, inside a banking office of which such station or window may be a part);

(C) Safeguarded against accidental transmission of an alarm;

(D) Equipped with a visual and audible signal capable of indicating improper functioning of or tampering with the system; and

(E) Equipped with an independent source of power (such as a battery) sufficient to assure continuously reliable operation of the system for at least 24 hours in the event of failure of the usual source of power.

(11) Burglary alarm systems. A burglary alarm system should be provided for each banking office. Burglary alarm systems should be:

(A) Capable of detecting promptly an attack on the outer door, walls, floor, or ceiling of each vault, and each safe not stored in a vault, in which currency, negotiable securities, or similar valuables are stored when the office is closed, and any attempt to move any such safe;

(B) Designed to transmit to the police, either directly or through an intermediary, a signal indicating that any such attempt is in progress; and for banking offices at which the police ordinarily cannot arrive within 5 minutes after an alarm is actuated, designed to actuate a loud sounding bell or other device that is audible inside the banking office and for a distance of approximately 500 feet outside the banking office;

(C) Safeguarded against accidental transmission of an alarm;

(D) Equipped with a visual and audible signal capable of indicating improper functioning of or tampering with the system; and (E) Equipped with an independent source of power (such as a battery) sufficient to assure continuously reliable operation of the system for at least 80 hours in the event of failure of the usual source of power.

(3) Walk-up and drive-in teller's stations or windows. Walk-up and drive-in teller's stations or windows contracted for after February 15, 1969, should be constructed in such a manner that tellers are effectively protected by bullet-resistant barriers from robbery or larceny by persons outside such stations or windows. Such barriers should be of glass at least 16 inches in thickness,1

1, 2, 3, 4, 5 See footnotes at end of appendix.

90-052-77-5

or of material of at least equivalent bulletresistance. Pass-through devices should be so designed and constructed as not to afford a person outside the station or window a direct line of fire at a person inside the station.

(4) Vaults, safes, safe deposit boxes, night depositories, and automated paying or receiving machines. Vaults, safes (if not to be stored in a vault), safe deposit boxes, night depositories, and automated paying or receiving machines, in any of which currency, negotiable securities, or similar valuables are to be stored when banking offices are closed, should meet or exceed the standards expressed in this section.

(1) Vaults. A vault is defined as a room or compartment that is designed for the storage and safekeeping of valuables and which has a size and shape which permits entrance and movement within by one or more persons. Other asset storage units which do not meet this definition of a vault will be considered as safes. Vaults contracted for after November 1, 1973, should have walls, floor, and ceiling of reinforced concrete at least 12 inches in thickness. The vault door should be made of steel at least 31⁄2 inches in thickness, or other drill and torch resistant material, and be equipped with a dial combination lock, a time lock, and a substantial lockable day-gate. Electrical conduits into the vault should not exceed 11⁄2 inches in diameter and should be offset within the walls, floor, or ceiling at least once so as not to form a direct path of entry. A vault ventilator, if provided, should be designed with consideration of safety to life without significant reduction of the strength of the vault wall to burglary attack. Alternatively, vaults should be so designed and constructed as to afford at least equivalent burglary resistance.

(11) Safes. Safes contracted for after February 15, 1969, should weigh at least 750 pounds empty, or be securely anchored to the premises where located. The body should consist of steel, at least 1 inch in thickness, either cast or fabricated, with an ultimate tensile strength of 50,000 pounds per square inch and be fastened in a manner equal to a continuous 1/4 inch penetration weld having an ultimate tensile strength of 50,000 pounds per square inch. The door should be made of steel that is at least 11⁄2 inch in thickness, and at least equivalent in strength to that specified for the body; and the door should be equipped with a combination lock, or time lock, and with a relocking device that will effectively lock the door if the combination lock or time lock is punched. One hole not exceeding 1⁄2 inch diameter may be provided in the body to permit insertion of electrical conductors, but should be located so as not to permit a direct view of the door or locking mechanism. Alternatively, safes should be constructed of materials that will afford at least equivalent burglary resistance.

(111) Safe deposit boxes. Safe deposit boxes used to safeguard customer valuables should be enclosed in a vault or safe meeting at