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CANS Conference Call
Presented by IBAT in cooperation with the Texas Department
of Banking
Tuesday, April 1, 2008
8:30 a.m. CST
General Information
During the 80th Regular Session of the Texas Legislature, Representative
Helen Giddings sponsored HB 2002, creating an electronic
notification system that requires your bank, upon proper
request by a customer, to alert check verification entities
that the customer has closed an account because of actual
fraud or compromised financial information. To implement
this program, every bank, savings bank, and credit union
maintaining an office, branch, or agency office in this state
must register with the Department of Banking, which is administering
the system. HB 2002 makes no distinction between state
and federally chartered financial institutions. The
Department has dubbed the system “CANS” (Closed
Account Notification System) and had it operating on schedule
on March 1, 2008. Your bank should have enrolled with
the Department prior to March 1. There is no fee to
register and no penalty for registering late.
IBAT Participants
Shannon Phillips - Deputy General Counsel
Steve Scurlock - Executive Vice President
Texas Department of Banking Participants
Bob Bacon - Deputy Commissioner
Wendy Buitron - Director of Strategic Support
Everette Jobe - Senior Counsel
Summary of call:
- Brief legislative history of House Bill 2002
- Bill sponsored by Helen Giddings
- Creates the Closed Account Notification System
- CANS process begins when a customer suffers a violation
of Penal Code §32.51
- Business and Commerce Code §35.595 sets out CANS
system and permits the Finance Commission to adopt rules
- Finance Commission adopted Chapter 35 of Texas Administrative
Code
- Brief discussion of rule
Note: A full transcript is available upon request.
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