Federal Reserve Payment System Risk Policy — 1996-01-30 [96-1652]

The Board has approved modifications to its Fedwire third- party access policy that establish additional requirements applicable to third-party access arrangements involving a service provider located outside the United States (``foreign service provider''). On August 9, 1995, the Board approved certain interim modifications to its Fedwire third-party access policy to clarify its applicability and to reduce the administrative burden of several provisions. At that time, the Board indicated the Federal Reserve Banks would not approve any new third-party access arrangements involving a foreign service provider, pending a review of the supervisory issues associated with such arrangements. The Board has completed its assessment and has modified its policy to address the conditions under which the Federal Reserve would consider approving foreign service provider arrangements.