The Federal Financial Institutions Examination Council (FFIEC) final guidance (attached and excerpted below) on social media was published on Dec. 11, 2013. The FFIEC is comprised of six supervisory agencies, and guidance applies to all of them. They are:
- Office of the Comptroller of the Currency (OCC)
- Board of Governors of the Federal Reserve System (Board)
- Federal Deposit Insurance Corporation (FDIC)
- National Credit Union Administration (NCUA)
- Consumer Financial Protection Bureau (CFPB)
- State Liaison Committee (SLC)
Banks, credit unions, and mortgage lenders are all required to comply with FFIEC guidelines.
According the guidelines, a financial Institution should have a risk management program that allows it to identify, measure, monitor, and control the risks related to social media. An overview of the specific
- A governance structure with clear roles and responsibilities whereby the board of directors or senior management direct how using social media contributes to the strategic goals of the institution (for example, through increasing brand awareness, product advertising, or researching new customer bases) and establish controls and ongoing assessment of risk in social media activities;
- Policies and procedures (either stand-alone or incorporated into other policies and procedures) regarding the use and monitoring of social media and compliance with all applicable consumer protection laws and regulations, and incorporation of guidance as appropriate. Further, policies and procedures should incorporate methodologies to address risks from online postings, edits, replies, and retention;
- A risk management process for selecting and managing third-party relationships in connection with social media;
- An employee training program that incorporates the institution’s policies and procedures for official, work-related use of social media, and potentially for other uses of social media, including defining impermissible activities;
- An oversight process for monitoring information posted to proprietary social media sites administered by the financial institution or a contracted third party;
- Audit and compliance functions to ensure ongoing compliance with internal policies and all applicable laws and regulations, and incorporation of guidance as appropriate; and
- Parameters for providing appropriate reporting to the financial institution’s board of directors or senior management that enable periodic evaluation of the effectiveness of the social media program and whether the program is achieving its stated objectives.
For more information: https://www.ffiec.gov/
Smarsh, Inc. assumes no liability for the accuracy or completeness of this information. Please consult with an attorney for specific information on specific rules and regulations and how they apply to your business.