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#345198 - 04/09/05 04:23 PM ABA Newbytes - more bankers jailed than terrorists
Princess Romeo Power Poster Joined: Jun 2001 Posts: 8,272 Where the heart is	I just had to share the quote that was in the ABA Daily Newsbytes last week. It was attributed to a bank director speaking to the OCC regarding BSA/USA PATRIOT exams. The banker was quoted as saying that he feared more bankers would be jailed in this effort than terrorists. rest of comment deleted.... Last edited by Bonnie M; 04/13/05 07:08 PM. _________________________ CRCM,CAMS Regulations are a poor substitute for ethics. Just sayin'
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#345199 - 04/09/05 09:31 PM Re: ABA Newbytes - more bankers jailed than terror
Kathleen O. Blanchard 10K Club Joined: Dec 2000 Posts: 21,293	As you know, ditto from here! _________________________ Kathleen O. Blanchard, CRCM "Kaybee" HMDA/CRA Training/Consulting/Mapping The HMDA Academy www.kaybeescomplianceinsights.com
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#345200 - 04/10/05 04:26 PM Re: ABA Newbytes - more bankers jailed than terror
MagicCity Power Poster Joined: Apr 2003 Posts: 3,003 Fort Lauderdale, Florida	God, this is depressing! But I agree!
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#345201 - 04/11/05 12:55 PM Re: ABA Newbytes - more bankers jailed than terror
Retired DQ 10K Club Joined: Dec 2002 Posts: 40,766 Turnpike Exit 10	Bonnie, you hit the nail on the head... _________________________ Get your facts first, then you can distort them as you please. - Mark Twain
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#345202 - 04/11/05 02:04 PM Re: ABA Newbytes - more bankers jailed than terrorists
skinnyminny Gold Star Joined: Mar 2002 Posts: 395 Heaven in comparison to my pri...	I agree that the "heat" from the OCC is ridiculous. Expecially when you consider that the people at the top say one thing and the field examiners say another. Weren't we just told (March 15-16 OCC BSA Webinar) by Dan Stipano that it wasn't necessary to file SARs, or require businesses to register as an MSB if they occasionally cashed checks ($1,000+), and the Bank performed a thorough review to determine if there was suspicious activity? Just last week we contacted our EIC and they said that we had to adhere to their Advisory Letter 2004-7, which says we must file a SAR if we suspect that a customer is an unregistered MSB! They really need to have some dialog among regulators (including FinCEN & IRS), as well as communication from the regulators at the top with the field personnel. If they don't make things clear on the MSB & SAR matters, a bank will not be able to avoid the beartraps along the way.
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#345203 - 04/11/05 04:10 PM Re: ABA Newbytes - more bankers jailed than terrorists
Anonymous Unregistered	Guys… I’m new to this forum (only made two posts prior to this one) but could someone share with me exactly what they fear from the OCC and what all this worry is about. I was an examiner for that agency prior to moving on to better things and I never- not once- saw them light a fire under anyone. I was there during Riggs, Broadway and a few others but those were isolated type incidents. Sure we would criticize stuff and maybe do an MOU or something but it was never anything major. In fact, my old group seemed more than willing to give banks the benefit of the doubt especially if they realized there was a problem and was taking steps to fix it. Besides…they didn’t want work going to DC (where things go when they are really bad) cause then everybody (banks and FO staff) catch hell. As for the quota thing... I never recall a quota but they typically dig until they find something to put in the report... surely you don't think they would tell you that you are doing a really good job and that’s it do you... there’s always an area that "needs improvement" I hope you pick up on the sarcasm! Really though, this is really just strict compliance. Its like a cop writing you for doing 26 in a 25 when he used to give you a 5mph buffer... just going to have to adjust and comply with the letter of the law and reg. Also… as for worrying that more bankers would go to jail than terrorists… that’s totally an over reaction! The OCC doesn’t send anyone to jail… they can make referrals but after that they are out of the loop- its up to fed agents and AUSAs when it comes to sending people to jail…NOT the OCC. And to be totally honest- thanks to the OCC “CYA program” where everything has to go through layers of approval and attorneys at HQ- most investigators/ AUSAs just take the referral and then leave them out of the loop as much as absolutely possible. They really are almost adversarial when dealing with law enforcement. Lets look at this for what it is… if your BSA program is lacking then you may have to worry about a negative ROE and maybe an MOU… things are really bad then you have to worry about C&D orders and CMPs- that’s about it. Now… if you are HELPING a terrorist/ dope dealer etc launder money or engaging in willful blindness to those activities then you do have BIG problems- and you should go to jail! But if the latter is happening then there will be many more agencies involved than the OCC and it will be much more of an in-depth inquiry than any two or three week exam could ever be. The bottom line is do your best to strengthen your BSA programs, report suspicious activities and you won’t have to worry about the OCC or going to jail... As for DQ’s comment on better communication… couldn’t agree more! Definitely needs to happen.
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#345204 - 04/11/05 04:36 PM Re: ABA Newbytes - more bankers jailed than terrorists
Lestie G Power Poster Joined: May 2002 Posts: 3,608 Near the Land of Enchantment	Anon - are you now in banking? If so, you'll understand shortly. By and large, I think the OCC is tough, but fair. I've always said I'd rather be working for a national bank than a state bank - because the OCC has historically been consistent in their supervision. A 3 rating means increased supervision costs to the bottom line immediately. MOU's and Letters, etc. just add to that cost. If your bank's strategic plan is growth through acquisitions or opening branches - that all comes to a screeching halt, and/or moves at the pace of molasses in January if you don't get good ratings on BSA. The letter of the law isn't all that difficult - it's all that stuff between the lines. What constitutes an "adequate" program, what's the proper amount of monitoring, how do you determine when to file an SAR? The questions go on and on. What was perfectly fine and complimented in last year's exam is cause for major discussions and Board action in this years. That's what we fear. We also fear the disconnect between what we hear from Washington in teleconferences, and what we hear from examiners in our banks. I think examiners are frustrated with that as well! _________________________ Opinions my own.
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#345205 - 04/11/05 05:49 PM Re: ABA Newbytes - more bankers jailed than terrorists
Kathleen O. Blanchard 10K Club Joined: Dec 2000 Posts: 21,293	Anon, if you would like to register and PM me, feel free to do so and I will tell you what this is about. _________________________ Kathleen O. Blanchard, CRCM "Kaybee" HMDA/CRA Training/Consulting/Mapping The HMDA Academy www.kaybeescomplianceinsights.com
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#345206 - 04/11/05 06:03 PM Re: ABA Newbytes - more bankers jailed than terrorists
Anonymous Unregistered	Leslie, I’m not in banking now but I do see your point… those ratings can mean problems in other areas and increased costs- which is definitely not something to blow off. I should have thought of that. I also see your point regarding what the “grey area” of the law. You guys can definitely be put in tight spots. I think communication is really the key though, hopefully things will loosen up in the future. I hate to see anyone forced out of a job the like because of technicalities… Kbee, I'll PM you
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#345207 - 04/14/05 03:14 AM Re: ABA Newbytes - more bankers jailed than terrorists
Princess Romeo Power Poster Joined: Jun 2001 Posts: 8,272 Where the heart is	Quote: Guys… I’m new to this forum (only made two posts prior to this one) but could someone share with me exactly what they fear from the OCC and what all this worry is about. I was an examiner for that agency prior to moving on to better things and I never- not once- saw them light a fire under anyone. I was there during Riggs, Broadway and a few others but those were isolated type incidents. Sure we would criticize stuff and maybe do an MOU or something but it was never anything major. In fact, my old group seemed more than willing to give banks the benefit of the doubt especially if they realized there was a problem and was taking steps to fix it. Besides…they didn’t want work going to DC (where things go when they are really bad) cause then everybody (banks and FO staff) catch hell. As for the quota thing... I never recall a quota but they typically dig until they find something to put in the report... surely you don't think they would tell you that you are doing a really good job and that’s it do you... there’s always an area that "needs improvement" I hope you pick up on the sarcasm! Really though, this is really just strict compliance. Its like a cop writing you for doing 26 in a 25 when he used to give you a 5mph buffer... just going to have to adjust and comply with the letter of the law and reg. Also… as for worrying that more bankers would go to jail than terrorists… that’s totally an over reaction! The OCC doesn’t send anyone to jail… they can make referrals but after that they are out of the loop- its up to fed agents and AUSAs when it comes to sending people to jail…NOT the OCC. And to be totally honest- thanks to the OCC “CYA program” where everything has to go through layers of approval and attorneys at HQ- most investigators/ AUSAs just take the referral and then leave them out of the loop as much as absolutely possible. They really are almost adversarial when dealing with law enforcement. Lets look at this for what it is… if your BSA program is lacking then you may have to worry about a negative ROE and maybe an MOU… things are really bad then you have to worry about C&D orders and CMPs- that’s about it. Now… if you are HELPING a terrorist/ dope dealer etc launder money or engaging in willful blindness to those activities then you do have BIG problems- and you should go to jail! But if the latter is happening then there will be many more agencies involved than the OCC and it will be much more of an in-depth inquiry than any two or three week exam could ever be. The bottom line is do your best to strengthen your BSA programs, report suspicious activities and you won’t have to worry about the OCC or going to jail... As for DQ’s comment on better communication… couldn’t agree more! Definitely needs to happen. A while back, I was naive enough to believe that. But not anymore. I really do not appreciate being lied to and lied about by examiners, nor do I appreciate being misquoted in an official report. It doesn't appear I can do anything about it. My faith in the regulatory system has been deeply shaken. _________________________ CRCM,CAMS Regulations are a poor substitute for ethics. Just sayin'
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