Funding Programs

ABG DUE DILIGENCE PROCEDURE

The following are the types of deposits ABG refers as well as the procedure ABG follows when acquiring a new account:

ABG conducts a thorough review of all customers who subscribe to our services. We gather the necessary information and check it against the Office of Foreign Assets Control (OFAC List) available on the FINRA website. If a person or entity turns up on this list, we will report these parties to the appropriate authorities. When ABG develops a new institutional account, we perform a background check on the institution by using industry resources such as IDC, S&P Global, the FDIC website and/or the NCUA website. All FDIC- or NCUA-chartered institutions must comply with CIP and the USA Patriot Act and section 103.121 (b) (2) (ii) (c) which states that domestic financial institutions are considered exempt domestic customers. Therefore, all exempt customers as defined in the USA Patriot Act that we refer to your institution would not have to be rechecked to avoid duplicate reviews. Even though this is stated in the regulation ABG will assist you in obtaining whatever documents your institution may require when opening certificate of deposit accounts. ABG does not clear funds that are referred to your institution. Please feel free to contact us for a full copy of our company’s AML policy.

  • FDIC-member financial institutions are required to comply with CIP regulations since they are regulated by the FDIC.
  • Public funds: ABG furnishes rate opportunities to registered financial advisors that provide investment services to over 5,000 school district and local government entities nationwide. The funds acquired through this program are at no cost and fall under the exempt status outlined in the USA Patriot act. Due diligence is done by the registered financial advisor to meet CIP guidelines. A copy of this procedure can be provided upon request.
  • NCUA-member financial institutions: These are state and federally regulated credit unions. Both are required to comply with CIP regulations since they are regulated by the state they reside in or NCUA.

Why Use ABG Funding Programs?

LOWER COST OF FUNDS + LESS WORK = MORE PROFIT!

  • Why pay fees to rate line services with little or no results?
  • Why pay to display your rates alongside the competition causing you to pay up on your rates when you need funds?
  • This is a very controlled program; you only take what you need.
  • Why tie up your staff with lengthy paperwork and phone calls?
  • We will refer accounts to your institution in increments of $95,000 or greater. This will allow you to open fewer accounts and put less stress on your staff.

PLEASE NOTE: Only well capitalized banking institutions should utilize a referral service to help meet liquidity shortfalls. Special funding such as referred deposits should fit into your institution’s overall AML strategy. There should not be any particular stigma associated with the acceptance of referred deposits. In written correspondence with the FDIC they have indicated that the acceptance and use of these types of deposits should not be discouraged. Please be advised that ABG Services Inc does not advise on whether a particular platform is brokered or non-brokered. It is up to each depository to direct all question regarding this matter to their appropriate regulating body.

FOR MORE INFORMATION PLEASE CONTACT US AT 1.800.807.3447

CHOOSE THE RIGHT FUNDING PROGRAM

Deposit Volume

Since inception, ABG has referred over $60 billion in bank deposits to federally insured institutions for maturity durations ranging from 30 days to 10 years. The majority of the placements have been from domestic financial institutions; however, in the past 3 years domestic public funds represent nearly 65 percent of the overall placements.
UNLIKE OTHER DEPOSIT REFERRAL SERVICES ABG IS THE ONLY ONE THAT OFFERS YOU A FULL SPECTRUM OF FUNDING SOURCES:

  • Direct Placements – These deposits are selected and wired directly to your institution from our clients. The accounts are set up in the referred clients name and tax id number.
    * There is no charge to your depository for this service.
  • Secured Deposits – For banks seeking large deposit placements that are willing to pledge a permitted form of collateral such as Federal Loan Bank Letters of Credit or a portfolio of assets (U.S. Treasuries, Government Agencies) in a third-party custodial account.
  • Total Cost Deposits – These deposits are best suited for well-capitalized banks who are seeking a cost-effective way of attracting funds at rates below the current national market.
  • Agent or Custodial Accounts – For banks looking for single deposits in increments of $75,000 up to $5,000,000. There are no fees involved in attracting these funds. This affords your institution the opportunity to attract larger denomination deposits from multiple deposit agents that rely on ABG Services to provide them with rate offers. This type of deposit eliminates the paperwork associated with opening numerous single deposit accounts.
  • Depository Trust Program (DTC) – For banks who are seeking large deposits through the registered market with minimum placements of $1 million or more. These deposits will be executed thru ICD Securities Inc., our affiliated FINRA Company.

Please note: All depositories are advised to review FDIC regulations regarding the acceptance of deposits for classification purposes. We also urge you to communicate with your regulating agents. ABG Services Inc does not advise on these matters.

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