Remote Deposit Capture (RDC): Rules and Regulations - Legal and Compliance Requirements

Remote Deposit Capture (RDC), just like other payment collection systems has guidance, laws, and rules that are required for a financial institution to utilize to help mitigate the risks involved and ensure compliance with its RDC Program. 

It is suggested that financial institutions regularly produce internal reports on the status of their RDC service. Financial institutions and their customers are legally obligated to comply with laws and regulations implemented to help prevent and detect money laundering and international terrorist financing.

This payments webinar will cover FFIEC Guidance on remote deposit capture which includes all types of RDC (i.e., merchant, mobile, ATM etc.) 

This RDC compliance training will take attendees through a comprehensive review of rules and regulations.

Although RDC offers considerable benefits to financial institutions and their customers, the service is not without risks. The FFIEC guidance covers several issues that require management attention. Included in this session will include FFIEC Guidance, Regulation J, Check 21, RDC mobile and commercial agreements, the participants and roles of NACHA, ECCHO, and participants in the RDC chain. 

Remote Deposit Capture is based on a set of rules, regulations, and legal agreements that define the parties' warranties, responsibilities, and liabilities. Understanding how they work is critical to your organization's ability to reduce Remote Deposit Capture risk.

As things evolve, there are new ways to capture the data of checks and invoices (RDC 2.0) will be discussed.

Attendees will also see scenarios where lessons can be learned with the implementation of Regulation CC regarding the challenges of implementation, remaining issues/opportunities, and best business practices for ensuring compliance with Regulation CC.

Remote Deposit Capture (RDC) is a product available for years for financial institutions to offer to their account holders (business and consumer), as an easy and convenient way to make deposits and even in some cases make payments.  There are laws, regulations and rules surrounding this process that users of the RDC product should know.  This session will cover those details. As times change, so does RDC, it is evolving and where advances have been made in the RDC space (RDC 2.0 is the term used) – this information will be outlined with the process involved and benefits, included will be what that means for the user of this product.

• Identify the regulations behind RDC (Remote Deposit Capture) and how the FRB regulations and the ECCHO rules affect this processing
• Define how UCC affects RDC processing (includes Check 21)
• List and describe the different methods of RDC (Remote Deposit Capture)
• Discover the benefits and risks involved with offering RDC service to both businesses and consumers
• Describe the process for Remote Deposit Capture and how this can streamline payments/deposits
• Observe the laws and regulations that financial institutions are obligated to comply with to help prevent certain risks

This webinar will take attendees through a comprehensive review of the following about RDC:

• FFIEC Guidance on RDC
• Federal Reserve Bank laws and Electronic Check Clearing House Organization (ECCHO) rules for RDC
• RDC and how Check 21 relates
• Uniform Commercial Code for RDC
• Agreements between you and your customers (commercial and consumers)
• Define what RDC 2.0 is and how it may apply to your program
• Regulation J relative to its connection with RDC
• Regulation E for consumer entries that are converted to ACH

Remote Deposit Capture (RDC) offers significant benefits, but it requires strict adherence to legal and regulatory frameworks to protect against risks like fraud, data breaches, and non-compliance with AML regulations. Financial institutions must ensure that both they and their customers follow established rules to maintain the security and integrity of the service.