Proposed Revisions to the Federal Reserve Policy on Payment System Risk and the Guidelines for Account and Services Requests (payment account), 91 FR 30627, FR Doc 2026-10375 (Part 3 of 3)
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which are controlling. 13 Reserve Banks may reference the OFAC section
institutions) could affect deposit 12 Reserve Banks may reference the FFIEC BSA/ of the FFIEC BSA/AML Manual. These guidelines
balances across U.S. financial AML Manual. These Guidelines may be updated to may be updated to reflect any changes to relevant
institutions more broadly and whether reflect any changes to relevant regulations. regulations.
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Federal Register / Vol. 91, No. 100 / Tuesday, May 26, 2026 / Notices 30651
the Reserve Banks. The Reserve Bank 1. Tier 1: Eligible institutions that are d. Payment Account requests from
should consider the implications of federally insured.15 Tier 2 institutions will be subject to the
providing an account to the institution a. As federally insured depository timing expectations set out in Section 4.
in normal times as well as in times of institutions, Tier 1 institutions are 3. Tier 3: Eligible institutions that are
stress. This consideration should occur already subject to a standard, strict, and not federally insured and are not
regardless of the current monetary comprehensive set of federal banking considered in Tier 2.
policy implementation framework in regulations. a. Non-federally insured institutions
place. b. In addition, for most Tier 1 that are chartered under federal law but
institutions, detailed regulatory and do not have a holding company subject
Section 2: Reserve Bank Account to Federal Reserve oversight would be
financial information would in most
Options considered in Tier 3.
cases be readily available, often in
public form. b. Non-federally insured institutions
The Reserve Banks offer two account
c. Accordingly, access requests by that are chartered under state law and
types to legally eligible institutions:
Tier 1 institutions will generally be are not subject (by statute) to prudential
Master Accounts and Payment
subject to a less intensive and more supervision by a federal banking agency,
Accounts.14 A Master Account is a
streamlined review. or have a holding company that is not
general-purpose account maintained by
d. In cases where the application of subject to Federal Reserve oversight,
a Reserve Bank for a legally eligible
the Guidelines to Tier 1 institutions would be considered in Tier 3.
institution as further described in Part c. Tier 3 institutions may be subject
IV of the Federal Reserve Policy on identifies potentially higher risk
profiles, the institutions will receive to a regulatory framework that is
Payment System Risk (PSR Policy). A substantially different from the
Payment Account is a special-purpose additional attention.
e. Access requests from Tier 1 regulatory framework that applies to
account maintained by a Reserve Bank federally insured institutions.
for a legally eligible institution for the institutions will be subject to the timing
d. In addition, detailed regulatory and
purpose of clearing and settling expectations set out in Section 4.
financial information regarding Tier 3
payments activity of the institution and 2. Tier 2: Eligible institutions that are
institutions may not exist or may be
its customers subject to the terms set not federally insured but are subject (by
unavailable.
forth in Part IV of the PSR Policy, the statute) to prudential supervision by a e. Accordingly, Tier 3 institutions will
Board’s Regulation A, and the Board’s federal banking agency.16 In addition, (i) generally receive the strictest level of
Regulation D. if such an institution is chartered under review.
federal law, it has a holding company f. Payment Account requests from
Section 3: Review Frameworks that is subject to Federal Reserve Tier 3 institutions will be subject to the
The review framework in this section oversight (by statute or commitments); timing expectations set out in Section 4.
is meant to serve as a guide to the level and (ii) if such an institution is
chartered under state law and has a Section 4: Account Request Review
of due diligence and scrutiny to be
holding company, that holding Timelines
applied by Reserve Banks to access
requests from different types of company is subject to Federal Reserve The Board believes that setting
institutions. Although institutions in a oversight (by statute or commitments).17 general expectations about the period
higher tier will on average face greater a. Tier 2 institutions are subject to a within which a Reserve Bank will
due diligence and scrutiny than similar, but not identical, set of complete its review of an access request
institutions in a lower tier, a Reserve regulations as federally insured give requesting institutions greater
Bank has the authority to grant or deny institutions. As a result, Tier 2 clarity on the resources and time needed
an access request by an institution in institutions may still present greater for the evaluation process. However, the
any of the three tiers, based on the risks than Tier 1 institutions. Board also believes that the nature of
Reserve Bank’s application of the b. Reserve Banks will have significant the relevant variables in access
principles in Section 1 to that particular supervisory information about, as well requests—including the variety of
institution. as some level of regulatory authority charter types, business models,
over, Tier 2 institutions. regulatory regimes, and risk profiles—
As discussed above, an institution’s c. Accordingly, account access precludes specification of a single
access request will be reviewed on a requests by Tier 2 institutions will timeline. Accordingly, the Board
case-by-case, risk-focused basis and the generally receive an intermediate level generally expects Reserve Banks to
tiers are designed to provide additional of review. evaluate access requests according to
transparency into the expected review
the timelines set forth below.18
process based on key characteristics. 15 See 12 U.S.C. 1813(c)(2) (defining ‘‘insured
depository institution’’ for purposes of the Federal Requests From Tier 1 Institutions
14 As explained in footnote 7, requests to be an Deposit Insurance Act) and 12 U.S.C. 1752(7)
(defining ‘‘insured credit union’’ for purposes of the As discussed in Section 3, access
agent or participant in an excess balance account
will also be reviewed pursuant to these guidelines. Federal Credit Union Act). requests from Tier 1 institutions will
Excess balances accounts are not discussed here as 16 The federal banking agencies include the generally be subject to a less intensive
they may not be used for general payments or other Board, the Office of the Comptroller of the Currency and more streamlined review. As a
activities. 12 CFR 204.10(d). For purposes of these (OCC), the Federal Deposit Insurance Corporation,
and the National Credit Union Administration.
result, Reserve Banks are generally
guidelines, Master Accounts and Payment Accounts
are distinct from the accounts that Reserve Banks Non-federally insured institutions that are chartered expected to complete their review of
provide (i) as depository and fiscal agent, such as under federal law are subject to prudential access requests from Tier 1 institutions
those provided for the Treasury and for certain supervision by the OCC. Non-federally insured within 45 calendar days of receiving all
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government-sponsored entities (12 U.S.C. 391, 393– institutions that are chartered under state law are
subject to prudential supervision by the Board if
requested documentation. In rare cases
95, 1823, 1435), (ii) to certain international
organizations (22 U.S.C. 285d, 286d, 290o–3, 290i– they become members of the Federal Reserve where the Reserve Bank is unable to
5, 290l–3), (iii) to designated financial market System.
utilities (12 U.S.C. 5465), and (iv) pursuant to the 17 Edge and Agreement Corporations and U.S. 18 An institution’s delay or failure to provide
Board’s Regulation N (12 CFR part 214), and joint branches and agencies of foreign banks would fall documents requested by the Reserve Bank may
accounts described in the Board’s Guidelines for under a Tier 2 level of review because of Federal result in a delay in the Reserve Bank’s review of its
Evaluating Joint Account Requests. Reserve oversight over these institutions. access request.
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30652 Federal Register / Vol. 91, No. 100 / Tuesday, May 26, 2026 / Notices
complete its review and provide a Account from the same institution. As a expected to consult with Board staff on
response to the requesting institution result, Reserve Banks are generally the additional time needed.
within this timeline, the Reserve Bank expected to complete their review of Appendix I: Daily Closing Balances
will be expected to consult with Board Payment Account requests from Tier 2
staff on the additional time needed. and Tier 3 institutions within 90 The graphic below displays the
distribution of daily closing balances for each
Requests for Payment Accounts calendar days of receiving all requested
year from 2021 to 2025, showing how closing
documentation.19 In rare cases where balances vary from the 25th percentile to the
Given that the Payment Account, by the Reserve Bank is unable to complete 99th percentile.
design, has a lower residual risk profile its review and provide a response to the
compared to a Master Account, a By order of the Board of Governors of the
requesting institution within this Federal Reserve System.
request from a Tier 2 or Tier 3 timeline, the Reserve Bank will be
institution for a Payment Account will Benjamin W. McDonough,
generally receive a more streamlined Secretary of the Board.
review relative to a request for a Master 19 Id. BILLING CODE 6210–01–C
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Federal Register / Vol. 91, No. 100 / Tuesday, May 26, 2026 / Notices 30653
[FR Doc. 2026–10375 Filed 5–22–26; 8:45 am]
BILLING CODE 6210–01–P
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