On December 14, 2016, the OCC issued its updated booklet, “Consigned Items and Other Customer Services.” This revised booklet replaces the June 1996 version and the exam procedures issued in February 1998. The OCC’s booklet provides updated guidance on assessing the risks associated with consigned items and other customer services. Consigned items include traveler’s checks, money orders, and U.S. commemorative coins. Other customer services include safe deposit boxes and messenger (courier or armored car) services.
Interestingly, the prohibition against lotteries and related services, including advertising a lottery, within a national bank is summarized in the booklet. Lotteries require three elements: (1) prize distribution; (2) chance, and (3) consideration (something of value). If any element is missing, a contest is not a prohibited lottery. Everything from employee weight loss challenges to allowable lottery services is discussed. Refer to the OCC’s Interpretive Letter #900 (6/19/00), Interpretive Letter #923 (12/19/01), and Interpretive Letter #1085 (03/08/07) that identify activities that constitute lottery advertisement. Regardless of your charter, the information is helpful in answering those endless “can we” questions.
Copyright © 2016 Compliance Action. Originally appeared in Compliance Action Vol. 21, No. 15, 12/16
Compliance Lifeline