Boston, MA, May 16, 2005 â According to a new Impact Note from Aite Group, LLC, compliance with the existing provisions of FACTA by banks is high. The Impact Note examines key provisions of FACTA, particularly the ones that impact the way banks must respond to identity theft. "But the pieces still being looked at by the rulemakers are a question mark," says Eva Weber, regulatory analyst for Aite Group and author of FACTAâs Identity Theft Provisions and Financial Institutions.
According to Weber, FACTA compliance is not onerous for banks at this point. "But compliance officers are wary that some of the provisions not yet defined by the rulemakers could require them to commit significant time and resources to FACTA," Weber says. "And many compliance officers say their spending on compliance with FACTAâs identity theft provisions is out of proportion to identity theft costs, given the low incidence rate of true identity theft."