Federal Financial Institutions Examination Council

Established in March 1979, the FFIEC is an interagency body of 6 government officials from 5 different financial governing bodies dedicated to promoting consistent supervision of financial institutions.

What is the purpose of the FFIEC?

Though the FFIEC doesn't directly regulate financial institutions, it exists to prescribe consistent principles, standards, and forms for the federal examination of these institutions by its member agencies, which include the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), and the Office of the Comptroller of the Currency (OCC). They tend to focus on:

• Cybersecurity: With the creation of the Cybersecurity and Critical Infrastructure Working Group in 2013, the FFIEC has been working closely with member agencies to strengthen oversight of cybersecurity measures. This includes methods of access validation, cloud computing security, malware detection, and more.
• IT Management: Emphasis on strategic planning and proper oversight of IT resources. This includes risk assessment, vendor management, and ensuring systems are aligned with business objectives and regulatory expectations.
• Data Protection: FFIEC Guidelines cover safeguarding sensitive customer information through encryption, secure storage, and account authentication procedures reduce the impact of data breaches.
• Real Estate: The FFIEC provides guidelines on evaluating risks tied to commercial and residential real estate lending, including concentration risks, market volatility, and credit exposure.

FFIEC Compliance

• Cybersecurity & Information Security

  • Adhering to the FFIEC Cybersecurity Assessment Tool (CAT) and subsequent updates.
  • Protecting against threats such as ransomware, phishing, and advanced persistent threats (APTs).
  • Implementing layered security controls for authentication, access validation, and intrusion detection.
  • Demonstrating resiliency against critical infrastructure disruptions.

• IT & Operations Management

  • Business continuity and disaster recovery planning.
  • Incident response testing and documentation.
  • Alignment with the IT Examination Handbook (covering topics like outsourcing, information systems architecture, and supervision).

• Data Protection & Privacy

  • Encryption of sensitive customer information.
  • Secure data retention and destruction policies.
  • Compliance with interagency guidelines on safeguarding customer information (e.g., GLBA Safeguards Rule).
  • Incident reporting and breach notification readiness.

Consumer Protection & Lending Practices

• • Compliance with laws such as the Home Mortgage Disclosure Act (HMDA) and Truth in Lending Act (TILA).
  • Equitable access to financial services.