[Code of Federal Regulations]
[Title 12, Volume 6]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR609.930]

[Page 51]
 
                       TITLE 12--BANKS AND BANKING
 
                 CHAPTER VI--FARM CREDIT ADMINISTRATION
 
PART 609_ELECTRONIC COMMERCE--Table of Contents
 
              Subpart C_Standards for Boards and Management
 
Sec. 609.930  Policies and procedures.


    The FCA supports E-commerce and wants to facilitate it and other new 
technologies and innovations to enhance the efficient conduct of 
business and the delivery of safe and sound credit and closely related 
services. Through E-commerce, System institutions can enhance customer 
service, access information, and provide alternate communication 
systems. At the same time, E-commerce presents challenges and risks that 
your board must carefully consider in advance. Before engaging in E-
commerce, you must weigh its business risks against its benefits. You 
must also adopt E-commerce policies and procedures to ensure your 
institution's safety and soundness and compliance with law and 
regulations. Among other concerns, the policies and procedures must 
address, when applicable:
    (a) Security and integrity of System institution and borrower data;
    (b) The privacy of your customers as well as visitors to your Web 
site;
    (c) Notices to customers or visitors to your Web site when they link 
to an affiliate or third party Web site;
    (d) Capability of vendor or application providers;
    (e) Business resumption after disruption;
    (f) Fraud and money laundering;
    (g) Intrusion detection and management;
    (h) Liability insurance; and
    (i) Prompt reporting of known or suspected criminal violations 
associated with E-commerce to law enforcement authorities and FCA under 
part 617 of this chapter.