--- title: What is FDIC source_page: https://www.sardine.ai/learn/fdic canonical: https://www.sardine.ai/learn/fdic format: text/markdown description: BSA/AML gaps trigger enforcement actions and capital restrictions. Close program weaknesses, document controls, and pass the next examination cycle. --- **Quick links:** [Human page](https://www.sardine.ai/learn/fdic) · [Home](https://www.sardine.ai) · [Customers](https://www.sardine.ai/customers) · [Blog](https://www.sardine.ai/blog) · [Demo](https://www.sardine.ai/demo) --- # What is FDIC **Read time:** 4 BSA/AML gaps trigger enforcement actions and capital restrictions. Close program weaknesses, document controls, and pass the next examination cycle. The FDIC is the US Federal Deposit Insurance Corporation, which insures bank deposits and serves as the primary federal supervisor for many state-chartered banks. In that supervisory role, it examines those banks for BSA and AML compliance using the shared FFIEC standards. What is the FDIC? Most people know the FDIC for the sticker on the bank door: it insures deposits, so that if an insured bank fails, depositors are protected up to the coverage limit. That deposit insurance is its most famous job, and it is why bank runs are far rarer than they once were. But the FDIC also wears a supervisory hat. It is the primary federal supervisor for many state-chartered banks that are not members of the Federal Reserve System. In that role, it examines those banks for a wide range of requirements, including their BSA and AML programs. So for a large slice of the banking sector, the FDIC is the agency that shows up to run the exam. When it examines for AML, the FDIC does not use its own separate playbook. It applies the shared FFIEC standards, the same interagency manual the other federal banking agencies use, so a bank is tested to a common standard regardless of which of the three supervises it. The three federal banking supervisors Who does the FDIC supervise? What it looks like in practice A mid-sized state-chartered bank that is not a Federal Reserve member is due for its periodic exam. The compliance officer knows the FDIC will lead it, and that the reviewers will work from the FFIEC BSA/AML manual rather than any FDIC-only checklist. She maps the bank's monitoring, customer due diligence, and reporting controls to the manual's procedures ahead of time, and reviews recent FDIC enforcement actions to see which issues are drawing attention. When the examiners arrive, there are no surprises, because she prepared to the same standard they test against. Why it matters to operators If you work at an FDIC-supervised bank, the FDIC is the agency whose exam you will face and whose enforcement actions signal what it expects. Knowing that your primary regulator is the FDIC tells you whose guidance to read first and whose enforcement patterns to study when preparing your program. The reassuring part is that the AML exam itself runs on the shared FFIEC standards, the same playbook the OCC and Federal Reserve use. So while the FDIC is your examiner, the substance of what it tests, monitoring, customer due diligence, reporting, and program governance, is common across the banking agencies. Prepare to the FFIEC manual and you are preparing for the FDIC exam. Operator notes Insurer and supervisor. The FDIC both insures deposits and examines many state non-member banks for BSA/AML. Know your primary regulator. Whether the FDIC, Fed, or OCC supervises you determines whose signals to weight most. Common exam standard. FDIC AML exams use the shared FFIEC manual, not a separate FDIC-only playbook. Watch its enforcement. FDIC actions and guidance reveal the expectations for the banks it oversees. Charter drives supervisor. A bank's charter and Fed-membership status determine which of the three agencies leads. Quick questions ### Does the FDIC only insure deposits? No. Deposit insurance is its best-known role, but it is also the primary federal supervisor for many state-chartered banks that are not Federal Reserve members, and it examines them for BSA/AML. ### Which banks does the FDIC supervise? Primarily state-chartered banks that are not members of the Federal Reserve System. Nationally chartered banks fall to the OCC, and state member banks and holding companies to the Fed. ### Does the FDIC use its own AML exam manual? No. It examines using the shared FFIEC BSA/AML standards, the same playbook the other federal banking agencies apply, so banks are tested to a common standard. ### How is the FDIC different from the Federal Reserve? They supervise different types of banks. The FDIC covers many state non-member banks; the Fed covers bank holding companies, state member banks, and many foreign bank operations. Both use FFIEC standards for AML. ### Why does knowing my primary regulator matter? Because it tells you whose exam you will face and whose enforcement actions and guidance to study first. The AML substance is shared, but the examiner and its priorities are specific. ### What should an FDIC-supervised bank study before an exam? The FFIEC BSA/AML Examination Manual, which the exam is based on, plus recent FDIC enforcement actions and guidance that signal current supervisory focus. Go deeper FATF ↗ — The global standard-setter for AML, counter-terrorist-financing, and counter-proliferation. Recommendations, guidance, and jurisdiction lists. FinCEN ↗ — The US financial intelligence unit. Bank Secrecy Act rules, advisories, and SAR and CTR guidance.