Designating a Security Officer

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Question:

We are in the process of choosing a new security officer, is it a requirement that the security officer be an officer of the bank or can the bank designate an employee?

Answer:

This is similar to appointing a BSA "officer". The primary requirement is that the individual has sufficient authority to carry out their role. Generally officers of the bank have more authority than non-officers.

Section 21.2 Designation of security officer.

Within 30 days after the opening of a new bank, the Bank's board of directors shall designate a security officer who shall have the authority, subject to the approval of the board of directors, for immediately developing and administering a written security program to protect each banking office from robberies, burglaries, and larcenies and to assist in identifying and apprehending persons who commit such acts.

First published on BankersOnline.com 10/29/07