Compliance Briefing for Monday, July 28, 2014

To access specific issuances, go to our Top Stories section, where you'll find links to all the relevant documents.

FDIC enforcement orders released
The FDIC has released a list of 37 orders of administrative enforcement actions taken against banks and individuals in June, 2014. Included were five removal and prohibition orders, eight section 19 orders, five civil money penalties (CMPs), one voluntary termination of insurance and several orders terminating earlier actions.

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.

Miami bank to pay for loan ads
One of the CMP orders announced by the FDIC (see above) was for $70,000, assessed against International Finance Bank, Miami, Florida, which was found to have violated section 1026.24(a) of Regulation Z and to have engaged in deceptive and unfair acts and practices in violation of section 5 of the FTC Act, by understating available interest rates on the bank's deposit-secured loans in advertising materials, website ads and brochures.

For Dummies eBook Download
Debit Card Fraud Detection
This handy booklet reveals the increasingly sophisticated methods criminals use to commit debit card fraud and shares tips on how to prevent card fraud using advanced technologies such as Common Point of Compromise detection.
— Verafin

$40K CMP for add-on UDAP violations
Also among the clutch of FDIC CMP orders was one for $40,000 imposed on First United Security Bank, Thomasville, Alabama, for deceptive and unfair acts and practices related to deposit account "add-on" ID theft insurance.

AML RightSource
The Smart Solution

AML RightSource provides an outsource solution for transaction monitoring. We offer not only the technology, but certified professionals to monitor your transactions and report back to you. Partnering with AML RightSource potentially allows you to reduce the cost of your BSA compliance department while saving time and resources.
— AML RightSource

Flood violation CMP
The FDIC has imposed an $11,165 civil money penalty against a Honolulu, Hawaii institution under the Flood Disaster Protection Act. Details can be found on the BOL Flood Penalties Watch page.

National HMDA Benchmarks for Fair Lending
In today's data centric regulatory world, you need to understand what your loan data indicates about your institution's approach to fair lending. The full story cannot be told without benchmarking against the industry. How do your application rates compare? Are you higher or lower than the national averages?
Click here to get a free National HMDA Benchmark report.
— TRUPOINT Partners

Electronics firm pays $4 million for OFAC violations
OFAC has announced that Epsilon Electronics, Inc., a California company, was assessed a $4,073,000 penalty for violations of the Iranian Transactions and Sanctions Regulations in connection with sales of car audio and video equipment to a company it knew or had reason to know distributed most of its products to Iran.

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

Sun Trust $160M settlement order
The Federal Reserve Board has released the order related to the previously announced monetary sanctions against SunTrust Banks, Inc., and certain of its subsidiaries for unsafe and unsound practices in residential mortgage loan servicing and processing. The Board reached an agreement in principle with SunTrust for monetary sanctions totaling $160 million on October 10, 2013 and reported in the October 11, 2013, BOL Top Stories.

Are Institutions Keeping Up With the Ever-Changing
Electronic Payments Environment?

Changes and updates are the norm when it comes to the world of ACH. Listen to Wipfli experts explain the 2014 and already approved 2015 NACHA rule changes, by clicking here to register for our free webinar.
— Wipfli

Chicago bank closed
The FDIC has announced the OCC's closing of GreenChoice Bank,fsb, Chicago, Illinois, and an agreement with Providence Bank, LLC, South Holland, Illinois, to assume all of the deposits of the failed bank. GreenChoice Bank, fsb is the fourteenth FDIC-insured institution to fail in 2014, and the fourth in Illinois.

Enhanced Customer Due Diligence and KYC Compliance
The FIS Prime™ Compliance Suite employs a newer, model-driven approach to collect customer information for automated OFAC checks, ID verification and risk-ranking. FIS Prime facilitates enhanced customer due diligence as part of a comprehensive Know Your Customer (KYC) program.

Communities to be suspended from Flood program
FEMA has published a final rule in this morning's Federal Register to identify communities in California, Florida, Montana, Texas and Virginia where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension on August 18, 2014, because of noncompliance with the floodplain management requirements of the program.

Preventing employee dishonesty and fraud
The NCUA has released the first three episodes of "Deterring, Preventing and Detecting Employee Dishonesty," a new seven-part online YouTube series on fraud prevention. The first three episodes provide an overview of the series and outline the importance of maintaining a policy on employee fraud and conducting surprise cash counts. In the coming weeks, the remaining four episodes, addressing separation of duties, employee and family member accounts, file maintenance transactions and vault cash, will be released.

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