Certified Regulatory Compliance Manager (CRCM) — Question 276

A bank has a stand-alone ATM in a high crime area. Due to concerns for the safety of individuals using the ATM, management decides to close it. According to branch closing policy statements issued by federal regulators, which of the following actions should the bank take?

Answer options

• A. No action is required because an ATM is not, by definition, a branch.
• B. Post a notice at the ATM at least 30 days before the intended closing date.
• C. Notify the bank's federal regulatory agency at least 90 days before the intended closing date.
• D. Mail a notice to all customers at least 90 days before the intended closing date.

Correct answer: A

Explanation

The correct answer is A because federal regulations do not classify ATMs as branches, thus no closure procedures are mandated. Options B, C, and D incorrectly assume that an ATM closure requires regulatory notifications or customer communications, which is not applicable in this case.