What is the risk of failing to make program documents available upon request?

Failing to provide program documents upon request poses significant compliance risks for financial institutions. When documentation is not readily available, it could lead to suspension or inactivation from programs due to non-compliance with regulatory requirements. Regulatory authorities often expect banks and financial institutions to maintain transparency and accountability. If a bank cannot supply necessary program documents, it raises questions about their adherence to regulations, potentially leading to negative consequences such as suspension from programs designed to ensure fair lending, anti-money laundering, or consumer protection.

This is particularly crucial in the context of regulatory compliance, where institutions must demonstrate their adherence to laws and guidelines set forth by governing bodies such as the Office of the Comptroller of the Currency (OCC) or the Consumer Financial Protection Bureau (CFPB). Thus, not having the required documents available can directly impact a bank's operational status in these programs, illustrating the importance of proper documentation management in maintaining compliance and operational integrity.