Glossary
FRFS = Federal Reserve Financial Services
Partner DI = Depository Institutions
Steps
Step 1 – Establish Eligibility
- To connect to FRFS payment rails, we need to establish if SCCB wants to become a Depository Institution (for FRFS)
As a non-depository institution, you will need to be proactive in identifying a DI who is willing to give your organization express authority to act on their behalf. State or federally chartered DIs can delegate to third parties the authority to act on their behalf with respect to conducting transactions and accessing the financial services and products available on FRFS payment rails. The DIs are responsible for performing due diligence and assume the risk of all activity conducted on their behalf (by you, the non-depository institution).
Your DI will be expected to complete the following tasks in assigning you this role:
- Complete the Sponsorship Agreement for Federal Reserve Financial Services (PDF) which designates you as an agent authorized to act on behalf of the DI and obtain access to Federal Reserve Financial Services.
- Confirm their relationship with you on the Electronic Transaction Identifier (ETI) application with LexisNexis Risk Solutions.
- Facilitate the service charges associated with your Federal Reserve Financial Services. The form that ties to this role is Federal Reserve Account Structure Guide, Attachment C – Service Provider Service Fee Settlement Authorization Form (PDF).
IMPORTANT NOTE: Please do not complete or submit any forms to the Federal Reserve for processing before you have been assigned and met with a relationship manager. The documents are shared here for informational purposes only to help guide your conversations in working with your partner DIs. The list above is illustrative, not comprehensive, and does not reflect all of the documentation necessary to complete onboarding.
The three DI responsibilities outlined above can all be done by the same DI, or each responsibility can be done by a different DI. You must have these roles verbally agreed to and confirmed with DIs to be assigned a Federal Reserve relationship manager.
Once assigned, your relationship manager will help guide your organization through the process of establishing connectivity with the Federal Reserve. They will coordinate the necessary contractual agreements, answer questions, and provide ongoing support based on the individual needs of your organization. Reviewing the information contained within this guide will help you have a productive initial meeting with your relationship