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Document Retention and Shredding Basics for Clearwater Banks

Of course, bank documents contain the most sensitive information in business transactions. Really, their confidential data leaves banks and their customers exposed. If it lands in the wrong hands it could lead to a disastrous security breach.

Thus, federal regulations apply to Clearwater banks. They include the retention and destruction of confidential documents and electronic records. These laws protect customers against security leaks and fraudulent activity. Plus, they ensure a bank’s accordance with federal rules and good practices. 

Federal Acts Regulating Bank Documentation

Recently, US legislators have passed several federal acts. They aid and protect bank and credit customers. In doing so, it ensures the transparency of financial institutions. They must conduct business fairly. Mostly, they have specific requirements for the retention of bank documentation. Some of the most pertinent acts include:

  • Gramm-Leach-Bliley Act (GLBA). This 1999 law requires banks to share how they secure customer information. They also must comply with federal guidelines on the retention and destruction of records.
  • Fair and Accurate Credit Transactions Act (FACTA). Since 2005, this act has applied to virtually all American people and corporations. It specifically addresses the proper disposal of sensitive consumer information.
  • Equal Credit Opportunity Act. This regulation covers access to loans. Also, it requires banks to hold all loan application information for 25 months.
  • Truth in Lending Act, Truth in Savings Act, and Electronic Funds Transfer Act. These three federal acts ensure fairness and transparency in bank business, customer policies, and electronic transactions. All three require banks to keep compliance evidence for two years after relevant actions.

The government levies substantial fines on banks that don’t comply. This includes those related to document retention. 

Retention Policies on Specific Bank Documents

The Bank Secrecy Act was enacted in 1970. It requires banks to keep records of business transactions and decisions for five years. Thus, they’ll guard against criminals using financial institutions for illegal activities. Actually, this includes money laundering. Retention policies include both hard copies and electronic documents.

This act covers copies of every document type, including:

  • Checks and deposit slips over $100.
  • Cashier’s and official checks over $3,000.
  • Wire transfers over $3,000.
  • Check tracing records.
  • Foreign currency transfers over $10,000.
  • Most credit extensions over $10,000.
  • Account statements after deposits.

Additionally, banks must keep documents related to business operations. This includes compliance reports, vendor contracts, and employee data. Also, it encompasses job applications, tax information, and accounts payable records.

Banks must maintain these documents, Plus, they’re responsible for protecting them. In other words, they need to ensure their safety against data breaches. This is done by limiting and controlling others’ access to the information. 

Policies About Destroying or Shredding Bank Data

Perhaps, the retention period for a piece of bank documentation has expired. Hence, it should be immediately destroyed. In reality, don’t hold on to data past the retention period. Otherwise, it’s as risky as not having it when it’s required. Consider sensitive data for both banks and their customers.

Actually, it can be exposed and breached if not properly destroyed. Guidelines on how to eliminate data are quite specific. No connecting pieces of shredded paper can be stuck together. Also, all electronic information needs to be entirely erased. Finally, paper records must be burned. 

Our Shredding Services for Clearwater Banks

ShredQuick can help Clearwater banks keep their business’s and customers’ security. Truthfully, our shredding service guarantees the destruction of expired information. Additionally, it meets or exceeds all federal guidelines for data elimination. Contact us today. In doing so, you’ll learn more about our step-by-step shredding process.

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