OCC Semiannual Risk Perspective Report

The Office of the Comptroller of the Currency (OCC) released its Semiannual Risk Perspective Report providing OCC supervisory concerns.  Leading concerns are strategic, underwriting, cybersecurity, compliance and interest rate risks. Highlights included in the report are: Many national banks and federal savings associations continue to face strategic challenges to growing revenues to meet target rates of return in a slow-growth, … Read More

IRS Criminal Investigation Releases Fiscal Year 2015 Annual Report

The Internal Revenue Service released its IRS Criminal Investigation (CI) annual report, reflecting significant accomplishments and enforcement actions taken in fiscal year 2015.  Focusing on tax-related identity theft, money laundering, public corruption, cybercrime and terrorist financing, IRS CI initiated 3,853 cases in FY 2015. The report includes a section on the IRS Illegal Source Financial Crimes Program, which includes all, … Read More

Amendments to the Telemarketing Sales Rule

The amendments include prohibiting four specific payments methods used by telemarketers and changes related to the National Do Not Call Registry. The prohibited payment methods include: Cash-to-Cash money transfers – where cash is received from one person and transferred to another person in a different location and received in cash. This includes services like Moneygram or Western Union. Cash reload … Read More

Annual Privacy Notice Requirement

Disclosure of Nonpublic Personal Information 15 USC 94 On December 4, 2015, President Obama signed the “Fixing America’s Surface Transportation Act” (“FAST Act”) which provides relief to financial institutions regarding providing an annual privacy notice. The Gramm-Leach-Bliley Act (GLB Act or GLBA) is a statute that, among other things, governs the privacy and sharing of nonpublic personal information.  Regulation P … Read More

Final Rule on the Frequency of Asset Assessment Fees (RCW 34.05.325(6))

Starting January 1, 2016, Washington State asset assessment fees will be collected on a semi-annual basis, rather than the current quarterly basis.  This will bring the collection of State assessment fees closer to the Federal assessment fees practice.  The annual aggregate amount will not change. http://www.dfi.wa.gov/sites/default/files/credit-unions/bulletins/B-15-15.pdf

Update to OFAC FAQs Regarding Cuba Travel-Related Transactions

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has updated its Frequently Asked Questions regarding Cuba travel-related transactions by U.S. financial institutions.  Question #52 has been added: Is a financial institution required to independently verify that an individual’s travel is authorized when processing Cuba travel-related transactions? No. A financial institution may rely on U.S. travelers to provide their certifications … Read More

Requirements for Consumer Authorizations for Preauthorized Electronic Fund Transfers

The CFPB has posted an article and announced its issuance of Bulletin 2015-06 on automatic debits. The article explains to consumers the way an auto debit to a financial institution account works and the protections for the account owner, and provides links to action letter templates consumers can use to invoke those protections. The Bulletin alerts companies that they must … Read More

FDIC Cybersecurity Resources

The FDIC provides cybersecurity awareness resources for financial institutions that credit unions can use to assess their risks and responses to threats. Within these, is a Community Bank Cyber Exercise that includes videos depicting unique security scenarios. The videos provide discussion topics on operational risk issues and the potential impact of information technology disruptions on common banking functions. The series … Read More

Reserve Requirement Adjustment for Depository Institutions – Regulation D

>The Federal Reserve amended Regulation D to reflect the annual indexing of reserve requirements for 2016. Reserve Liability Reserve Requirement Net Transaction Accounts:   $0 to $15.2 million (from $14.5 million) 0% of amount   $15.2 million to $110.2 million (from $103.6 million) 3% of amount   Over $110.2 million $2,850,000 + 10% of the amount over $110.2 million Nonpersonal … Read More

ACH Unauthorized Entry Fee

The Rule is intended to improve ACH Network quality by reducing the incidence of ACH debits that are returned as unauthorized. Under this Rule, an ODFI will pay a fee to the RDFI for each ACH debit that is returned as unauthorized (return reason codes R05 reserved, R07 authorization revoked by customer, R10 customer advises not authorized; ineligible, notice not … Read More