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OCC BULLETIN 2014-41
To: Chief Executive Officers of All National Banks and Federal Savings Associations, Department and Division Heads, All Examining Personnel, and Other Interested Parties

Description: Revised Comptroller’s Handbook Booklet

Summary

The Office of the Comptroller of the Currency (OCC) issued today the “Merchant Processing” booklet of the Comptroller’s Handbook. This booklet, which replaces the booklet of the same name issued in December 2001, has been revised to include the supervision of federal savings associations. The “Merchant Processing” booklet provides updated guidance to examiners and bankers on assessing and managing the risks associated with merchant processing activities.

Highlights

This booklet includes updated guidance on

  • selection of third-party organizations and due diligence.
  • technology service providers.
  • on-site inspections, audits, and attestation engagements, including the “Statement on Standards for Attestation Engagement” (SSAE 16) and the “International Standard on Assurance Engagements” (ISAE 3402).
  • data security standards in the payment card industry for merchants and processors.
  • member alert to control high-risk merchants (MATCH) list.
  • Bank Secrecy Act/Anti-Money Laundering compliance programs and appropriate policies, procedures, and processes to monitor and identify unusual activity.
  • appropriate capital for merchant processing activities.

Note for Community Banks

The “Merchant Processing” booklet is applicable to all OCC-regulated institutions that perform merchant processing activities.

For further information, contact Robert Piepergerdes, Director for Retail Credit Risk, at (202) 649-6220.
 

Jennifer C. Kelly
Senior Deputy Comptroller and Chief National Bank Examiner

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