Compliance Briefing for Friday, September 19, 2014

To access specific issuances, go to our Top Stories section, where you'll find links to all the relevant documents.
Risk Scoring — The Essential Element of BSA/AML Compliance

PATRIOT OFFICER automatically calculates risk scores for each customer to identify higher-risk customers and monitors them more closely as the regulations mandate. The solution automatically detects check fraud, check kiting, deposit fraud, ACH fraud, wire fraud, Internet banking fraud, credit/debit card fraud, ATM fraud, employee fraud, and financial fraud to prevent losses. PATRIOT OFFICER is the only BSA/AML/FRAUD solution endorsed by American Bankers Association.
— GlobalVision Systems, Inc.

South Sudan-related OFAC designations
Treasury has announced the designation of two individuals and the addition of their names to the SDN List with the SOUTH SUDAN identifier. Details have been posted in a BOL OFAC Update.

Case Study
How Verafin Helped Prevent $547,000 in Losses
This case study highlights how Community Financial Services Bank (CFSB) in Kentucky prevented potential fraud losses of more than $500,000 in just one year with the help of Verafin's FRAML (FRaud detection + AML) software. Before Verafin, CFSB logged everything manually. Now they have a fraud center with Verafin at its core.
— Verafin

Residential construction
HUD and the Census Bureau have released the August 2014 new residential construction activity report. Building permits for privately owned housing, single-family housing, and single housing starts were down from the revised July numbers. Completions of privately owned housing were up from the July revised numbers.

AML RightSource
When It Matters

AML RightSource [a Gabriel Partners company] is the leading provider of outsourced AML/BSA compliance services. Our state of the art team of compliance professionals assist clients with Lookbacks and Backlog Remediation, Enhanced Due Diligence Reviews, BSA staffing enhancement / Case Overflow Management, and Total BSA Work Flow Outsourcing. When compliance matters, think AML RightSource.
— AML RightSource

Santander Written Agreement
The Federal Reserve Board has announced the execution of a Written Agreement with Santander Holdings, USA, Inc., of Boston, Massachusetts.

UDAAP Compliance Made Easy
The best way to navigate UDAAP compliance is understand your risk. TRUPOINT's UDAAP RiskCheck™ is an easy to use web based tool that makes UDAAP compliance easy. It will provide the answers you need quickly and at a price that makes sense.
— TRUPOINT Partners

Yellen on asset building
In a presenetation at the 2014 Assets Learning Conference of the Corporation for Enterprise Development, Federal Reserve Board Chair Yellen discussed the importance of asset building for low- and middle-income households. She noted the recently released Federal Reserve 2013 Survey of Consumer Finance revealed the 2013 median net worth reported by the bottom fifth of households by income was only $6,400 and the next fifth of households by income had median net worth of just $27,900. She indicated one of the lessons learned from the financial crisis is the importance of diversification and especially of possessing savings and other liquid financial assets to fall back on in times of economic distress.

OCC & CFPB New Third-Party Oversight Requirements:
Using Multiple AMCs?
If you're using multiple AMCs, compliance with new oversight requirements can be difficult or impossible without this framework. Download this free white paper with fourteen recommendations and step-by-step guidelines.
— a la mode

2013 debit card transactions data
A report has been published by the Federal Reserve with summary information on the volume and value, interchange fee revenue, certain issuer costs, and fraud losses related to debit card transactions in 2013. The report is the third in a series published every two years under the Electronic Fund Transfer Act. The Fed estimated debit-card fraud losses to all parties (merchants, cardholders, and issuers) to be $1.57 billion in 2013, with an average loss of approximately 8 basis points as a share of transaction value, up slightly from 2011. The median covered issuer's average fraud loss as a share of transaction value was 5 basis points, up slightly from 4.7 basis points in 2011. The median covered issuer had average fraud prevention and data security costs of slightly more than 1.4 cents per transaction.

NCUA Board action
The NCUA has issued a Board Action Bulletin reporting the actions taken at the September 18, 2014, meeting. The Board unanimously approved two items:
  • Expansion of the community charter of First Service Federal Credit Union to serve eight counties around Columbus, Ohio.
  • A final rule repealing NCUA's regulation on unfair or deceptive advertising or practices in response to changes made by the Dodd-Frank Act and making other non-substantive changes to the rules to modify terminology and reflect changes in the agency's operations.
In addition, it was reported to the Board that, as of June 30, 2014, the Stabilization Fund reported for the first time a positive net position of $51.2 million, improving by $91.6 million from a $40.4 million deficit at the end of the first quarter.

CFPB auto finance hearing
A field hearing on auto financing was held in Indianapolis yesterday by the CFPB. Director Cordray issued prepared remarks, which were followed by testimony from consumer groups, industry representatives, and members of the public. A video of the hearing will be posted on the Bureau's Blog in the next several days.

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