Could There Be a Light at the End of the Constant Tunnel of Audits and Exams?

Yesterday the House of Representatives Financial Services Committee held a hearing to markup H.R. 3626 (among several other Bills), the “Bank Service Company Examination Coordination Act of 2017.” Sponsored by Rep. Roger Williams (R-TX) and five others (two Democrats, three Republicans), the Bill would amend the Bank Service Company Act in ways intended to reduce the burden on both regulators and those they examine. The Bill was passed out of committee by a vote of 56-0.

The Bank Service Company Act (12 U.S. Code § 1867) concerns regulation and examination of bank service companies. It states,

“the depository institution shall notify each such agency of the existence of the service relationship within 30 days after the making of such service contract or the performance of the service, whichever occurs first."

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