Customer Due Diligence on the Frontline

Be sure to JOIN US on February 20, 2020, for our webinar, “Customer Due Diligence on the Frontline”. 

The fifth pillar of your BSA program (aka customer due diligence requirements) has been around for a while now.  When we go into banks and do reviews; however, we find that while most of your frontline people understand they need to complete the beneficial ownership form, they aren’t quite as familiar with the equally important, broader concepts such as when to update information, when something is unusual, or when to reevaluate the relationship.  This webinar will focus on what your frontline needs know and what they need to look out for.

Click on the video to listen to Kevin explain more.

Other Upcoming BSA/AML Webinars:

February 18thCustomer Due Diligence Programs & Beneficial Owners

March 10thBSA Officer/Team Responsibilities

March 12thBSA for Tellers and Customer Service Representatives

March 31stBSA: Just for Operations

April 2ndBSA for Lenders

Published
2020/02/15

Want more Free Lending tools? See here – https://store.bankerscompliance.com/link/BSAFreeTools

Proposal to Modernize Community Reinvestment Act (CRA) Rules

In case you missed it, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) recently issued a proposal to modernize CRA rules.  CRA, as you may know, has not seen any substantial updates in nearly 25 years.

When soliciting feedback to determine what improvements could be made to the CRA, the general opinions were that the CRA regulatory framework lacks objectivity, transparency, and fairness.  Further, many feel the existing framework is difficult to understand and is applied inconsistently.  As a result, the proposal seeks changes in the following key areas:

  1. Clarifying and expanding what qualifies for CRA credit;
  2. Expanding where CRA activity counts;
  3. Providing an objective method to measure CRA activity; and,
  4. Revising data collection, record-keeping, and reporting requirements. 

The proposed rule would consider a “small bank” to be defined as assets of $500 million or less in each of the prior four quarters.  The existing “intermediate small bank” designation would go away and everyone else would be a “large bank”.  Data collection and record-keeping would, to some extent, be required of ALL institutions, which is not currently the case for “small banks”.  In addition, there are potentially significant changes as to how a bank would determine its CRA assessment area.  Among other things, the location of a bank’s deposit customers would be a new factor to consider.  It also includes a requirement for banks to conduct an annual CRA self-evaluation to be completed and submitted to regulators for validation.

We typically don’t get too excited about proposals but this is one you may want to take a look at and submit comments, especially if you’re a small bank for CRA.  Our review of the proposal noted some positives, some problems, and some clear contradictions, but perhaps most telling is some conflict among the regulators.  The Federal Reserve Board was notably absent in issuing this proposal and has since been critical of some of the content.  The comment period is set to end March 9, 2020.  We encourage you to review the proposal, submit your feedback, and stay tuned.  If there is one thing that seems to be certain, it is that there will be changes of some kind. 

Published
2020/02/10

Customer Due Diligence & Beneficial Owners

Be sure to JOIN US on February 18, 2020, for our webinar, “Customer Due Diligence & Beneficial Owners”. 

The fifth pillar of your BSA program (aka customer due diligence) is an area that many financial institutions still continue to miss some of the requirements.  Most employees understand that they need to fill out a form to document beneficial owners and get the certification, but what they don’t fully grasp is how that all plays in to customer due diligence.

Listen to the as Kevin explains more.


Upcoming BSA/AML Webinars:

February 20thCustomer Due Diligence on the Frontline

March 10thBSA Officer/Team Responsibilities

March 12thBSA for Tellers and Customer Service Representatives

March 31stBSA: Just for Operations

April 2ndBSA for Lenders

Published
2020/02/05

Want more Free BSA tools? See here – https://store.bankerscompliance.com/link/BSAFreeTools

Tailored BSA Training

Training is one of the most important aspects of your BSA program. In fact, it’s one of the five pillars.  BSA training should be tailored to match the various responsibilities of your Team. In other words, BSA training for your tellers should look a little different than BSA training for your lenders.  Training for your BSA staff should look different than your Board of Directors. 

Listen to the as Kevin explains more.


We have a variety of webinars coming up that will help you tailor your BSA Training.  We also have many available now in our store.  We hope you’ll check them out!!

Upcoming BSA/AML Webinars:

February 18thCustomer Due Diligence & Beneficial Owners

February 20thCustomer Due Diligence on the Frontline

March 10thBSA Officer/Team Responsibilities

March 12thBSA for Tellers and Customer Service Representatives

March 31stBSA: Just for Operations

April 2ndBSA for Lenders

Published
2020/01/30

Want more Free BSA tools? See here – https://store.bankerscompliance.com/link/BSAFreeTools

FDIC Common Deposit Violations

In November, we had the pleasure of attending the 2019 Iowa Bankers Association Compliance Conference.  One of the breakout sessions addressed common errors and findings from the FDIC.  Whether you are FDIC regulated or not, any time you have access to a regulator’s common violations, it’s a great opportunity to review them and ensure you are not making the same mistakes at your financial institution.

  1. Truth In Savings Act

Many of the common violations noted had to do with system updates.  If you customize your software, for example, so that fee terminology on your periodic statements matches your account opening disclosures, make sure when you get a system update that those changes are still in place.  Financial institutions often don’t think to check this and unfortunately, examiners are typically the ones to find the problem.

2. Electronic Fund Transfer Error Resolution

The FDIC continues to see the following violations:

  • Employees not immediately sending error notices to the appropriate department for timely investigation and resolution;
    • Requiring a consumer to provide a written or signed confirmation of the error before initiating an investigation;
    • Requiring a police report or a signed fraud affidavit before initiating an investigation;
    • Requiring the consumer to work with the merchant prior to investigating an EFT error; and,
    • Not notifying consumers when an investigation has been completed and giving them the results of the investigation.

Be sure to check out our webinars that are available On Demand.  We offer webinars on a variety of deposit topics including both the Truth in Savings Act and Regulation E: Errors & Disputes.

Published
2020/01/21