Compliance Alliance Question of the Week

Question:
If we need to temporarily shut down one of our branches to treat for dangerous mold, do we need to give any kind of notice to our regulator?
 
Answer:
At the federal level, there’s a specific exemption for temporary closings that are not in the bank’s control (for example, due to natural disaster), and this dangerous mold will likely be considered not in the bank’s control and, thus, subject to the exception: 

Section 42 also does not apply when a branch ceases operation but is not closed by an institution. Thus, the law does not apply to:
• A temporary interruption of service caused by an event beyond the institution's control (e.g., a natural catastrophe), if the insured depository institution plans to restore branching services at the site in a timely manner; ..
Interagency Policy Statement: https://www.fdic.gov/regulations/laws/rules/5000-3830.html

Even if this is the case, though, providing notice would certainly be good customer service, and our director, who is a former examiner, would consider it a best practice.