Federal Reserve Minimum Security Devices and Procedures for Federal Reserve Banks and State Member Banks

PART 216 - SECURITY PROCEDURES

AUTHORITY: 12 U.S.C. Section Section 1881 - 1884

Section 216.1 Authority, purpose, and scope.
(a) This regulation is issued by the Board of Governors of the Federal Reserve System (the "Board") pursuant to section 3 of the Bank Protection Act of 1968 (12 U.S.C. Section 1882). It applies to Federal Reserve Banks and state banks that are members of the Federal Reserve System. It requires each bank to adopt appropriate security procedures to discourage robberies, burglaries, and larcenies, and to assist in the identification and prosecution of persons who commit such acts.

(b) It is the responsibility of the member bank's board of directors to comply with this regulation and ensure that a written security program for the bank's main office and branches is developed and implemented.

Section 216.2 Designation of security officer.
Upon becoming a member of the Federal Reserve System, a state bank's board of directors shall designate a security officer who shall have the authority, subject to the approval of the board of directors to develop, within a reasonable time, but no later than 180 days, and to administer a written security program for each banking office.

216.3 Security program.
(a) Contents of security program. The security program shall:

(1) establish procedures for opening and closing for business and for the safekeeping of all currency, negotiable securities, and similar valuables at all times;

(2) establish procedures that will assist in identifying persons committing crimes against the institution and that will preserve evidence that may aid in their identification and prosecution. Such procedures may include, but are not limited to:

(i) maintaining a camera that records activity in the banking office;

(ii) using identification devices, such as prerecorded serial-numbered bills, or chemical and electronic devices; and

(iii) retaining a record of any robbery, burglary, or larceny committed against the bank;

(3) provide for initial and periodic training of officers and employees in their responsibilities under the security program and in proper employee conduct during and after a burglary, robbery, or larceny; and

(4) provide for selecting, testing, operating, and maintaining appropriate security devices, as specified in paragraph (b) of this section.

(b)Security devices. Each member bank shall have, at a minimum, the following security devices:
(1) a means of protecting cash and other liquid assets, such as a vault, safe, or other secure space;

(2) 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;

(3) tamper-resistant locks on exterior doors and exterior windows that may be opened;

(4) 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

(5) such other devices as the security officer determines to be appropriate, taking into consideration:

(i) the incidence of crimes against financial institutions in the area;

(ii) the amount of currency and other valuables exposed to robbery, burglary, and larceny;

(iii) the distance of the banking office from the nearest responsible law enforcement officers;

(iv) the cost of the security devices;

(v) other security measures in effect at the banking office; and

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

Section 216.4 Report.
The security officer for each member bank shall report at least annually to the bank's board of directors on the implementation, administration, and effectiveness of the security program.

Section 216.5 Federal Reserve Banks.
Each Reserve Bank shall develop and maintain a written security program for its main office and branches subject to review and approval of the Board.

By order of the Board of Governors of the Federal Reserve System, March 22, 1991.

(signed) Jennifer J. Johnson
Associate Secretary of the Board

Copyright © 1991 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 2, No. 4, 5/91