Compliance Briefing for Thursday, July 24, 2014

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

Kingpin Act designations
Treasury has announced that it has designated 17 leaders and criminal associates of the violent Colombian drug trafficking organization Los Urabenos as specially designated narcotics traffickers (SDNTs) pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). Treasury also designated six businesses in Colombia associated with members of Los Urabenos. As a result of these action, all assets of those designated that are based in the United States or in control by U.S. persons are frozen, and U.S. persons are generally prohibited from engaging in transactions with them. Information regarding the designations has been posted in a BOL OFAC Update.

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.

Agencies take action to halt mortgage schemes
The Federal Trade Commission, the Consumer Financial Protection Bureau and various state agencies have announced actions taken against six mortgage relief operations, charging that defendants preyed on distressed homeowners by misrepresenting that they typically could lower homeowners' mortgage payments and interest rates or prevent foreclosure, and illegally charging advance fees. The actions were part of "Operation Mis-Modification," a joint federal and state enforcement sweep conducted with the CFPB. The defendants were charged with violating the Federal Trade Commission Act and the Mortgage Assistance Relief Services (MARS) Rule (CFPB Regulation O, 12 CFR Part 1015), which bans mortgage foreclosure rescue and loan modification services from collecting fees until homeowners have a written offer from their lender or servicer that they deem acceptable. The CFPB also issued a Consumer Advisory about foreclosure relief scams and bogus legal help.

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

OFAC releases additional formats for SSI List
OFAC has released additional file formats for the Sectoral Sanctions Identification (SSI) List. The SSI List will be available in the same file formats as the SDN and FSE Lists, and the layout of names on the SSI List will be identical to the layout of names on the SDN List. In addition, SSI List data files will follow existing SDN List data standards. Information regarding the SSI List has been added to the OFAC Frequently Asked Questions (FAQs).

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

NCUA plans regulatory relief actions
In a presentation at the National Association of Federal Credit Union's Annual Conference, Chairman Matz indicated credit unions will have greater flexibility and be able to offer better services to members under a series of planned regulatory relief changes. New relief proposals include eliminating the fixed-assets cap, modernizing member business lending and updating appraisal provisions. Changes to current regulations previously announced include facilitating associational fields of membership, expanding investment authorities and removing redundancy in appraisals.

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

Treasury Fiscal Service updates its ACH rules
Treasury's Bureau of the Fiscal Service has published a final rule to amend its regulation governing the use of the Automated Clearing House (ACH) network by Federal agencies ("Federal Government Participation in the Automated Clearing House," 12 CFR Part 210). The changes include amendments set forth in NACHA's 2010, 2011, 2012, and 2013 Operating Rules books. The changes made by the Fiscal Service, which will become effective August 25, 2014, are routine updates, with minimal impact on financial institutions receiving ACH entries from Treasury.

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

FinCEN e-filing challenges
A number of BOL Bankers' Threads users have been discussing on-going problems they've experienced in attempting to upload reports using the FinCEN e-filing system. The problem could be an incompatibility between systems caused by a Windows update. FinCEN has reportedly posted a notice on its e-filing site concerning the cause of the problem, with a list of possible workarounds. To catch up on the discussion or add information on your experience dealing with the problem, join the conversation in the Threads BSA/AML/CIP/OFAC Forum.

Are Your ACH Policy and Procedures Current With Today's Requirements?
With ever-changing NACHA rules and other related laws and regulations, it can be a challenge to stay ahead of the curve. Click here to for helpful information to ensure you don't strike out when it comes to NACHA compliance.
— Wipfli

Enhanced Customer Due Diligence and KYC Compliance
The FIS Primeā„¢ 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.

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