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  • OFAC Adds Al-Aqsa Foundation
    Al-Aqsa Foundation has been added to the OFAC list as an SDGT, with numerous aliases. Plus, changes have been made relating to the sanctions on Yugoslavia, and FRYM and Balkans entities. All FRYM and Balkans entries which were previously on the OFAC SDN list have been deleted, but 173 NEW Balkans entries (plus "A.K.A.s") have been substituted. Complete details are on the BOL OFAC summary page. 5/30/03

  • FRB Issues Proposed Rule to Amend Reg K
    The FRB is seeking public comment on a proposal to require Edge and Agreement corporations and U.S. branches, agencies and other offices of foreign banks supervised by the Board to establish and maintain procedures reasonably designed to assure and monitor compliance with the Bank Secrecy Act and the regulations issued thereunder. [This was previously announced on BOL] 68FR32434 (txt) 68FR32434 (pdf) 5/30/03

  • NCUA Issues Final Rule to Amend its Involuntary Liquidation Regulation
    The NCUA is issuing a final rule amending its involuntary liquidation regulation to designate swap agreements (swaps) as qualified financial contracts (QFCs). Treatment of swaps as QFCs will limit swap counterparty exposure when a federally-insured credit union is placed into involuntary liquidation or a conservatorship and thereby encourage entities to engage in swaps with federally-insured credit unions. Treatment of swaps as QFCs will also help preserve market stability. 68FR32355 (txt) 68FR32355 (pdf) 5/30/03

  • FDIC April Enforcement Actions Announced
    The FDIC has released a list of orders of administrative enforcement actions taken against banks and individuals in April. The actions include two cease-and-desist orders, two removal-and-prohibition orders, seven civil money penalty orders, one voluntary termination of insurance order, one termination of a supervisory prompt corrective action directive, one termination of a cease-and-desist order, and one adjudicated decision. FDIC PR-50-2003 5/30/03

  • FRB Announced Written Agreements with Two Institutions
    The FRB has announced it has entered into written agreements with Brickyard Bancorp, Inc., Lincolnwood, Illinois, and NAB Bank, Chicago, Illinois. Brickyard Bancorp, Inc. Agreement NAB Bank Agreement 5/30/03

  • Dual Banking System Serves Customer Needs
    The advantages of the U.S. dual banking system were outlined by Treasury Assistant Secretary Abernathy to the Annual Meeting of the Conference of State Bank Supervisors. He noted over the last several years, State and National banks have made enormous strides in expanding the reach of their services. Millions of people are new customers of mainstream financial institutions. Treasury JS-437 5/30/03

  • BOL User Sounds Counterfeit Cashier's Checks Alert
    A BOL User utilized Bankers' Threads Security Forum to post a warning of attempts to negotiate counterfeit cashier's checks drawn on the Border Trust Company, South China, Maine. The alert has been confirmed by the institution. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/30/03

  • Veil Case Goes to Court
    A case in which a Muslim woman is suing the state of Florida for revoking her driver's license after she refused to unveil for the photo is finally going to court. Experts are lined up on both sides to debate the extent to which freedom of religion must give way to the interests of public safety. For purposes of verifying the identity of veiled customers for your CIP, take a look at an article from the BOL Archive: "Verifying Customer Identity Beyond the Veil". Related News Story 5/29/03

  • Comments Sought on Reg K Amendment
    The FRB is seeking comments on a proposed amendment to Reg K that would require Edge and Agreement corporations and U.S. branches, agencies, and other offices of foreign banks supervised by the Board to establish and maintain procedures reasonably designed to ensure and monitor compliance with the Bank Secrecy Act and related regulations. Comments are due on or before June 30, 2003. FRB Notice 5/29/03

  • FFIEC Reporting Forms Online
    The June 2003 FFIEC 031 and 041 Reporting Forms are available online. Form 031 Form 0415/29/03

  • New Lower Tax Withholding Tables Online
    The Treasury and IRS have placed the new tax withholding table on their websites. The new tables are the result of the Jobs and Growth Tax Relief Reconciliation Act of 2003. Treasury PR    IRS PR    Treasury Tables    IRS Tables 5/29/03

  • Now Online - Charge-Off and Delinquency Rates
    The FRB has placed online the charge-off and delinquency rates on loan and leases for commercial banks compiled from the quarterly FFIEC Consolidated Reports of Condition and Income. FRB Statistical Release 5/29/03

  • Financial Holding Company List Updated
    The FRB has updated the list of the bank holding companies that have elected under the provisions of the Bank holding Company Act to become or treated as financial holding companies. FRB FHC 5/29/03

  • Most Iraqi Sanctions Lifted
    Treasury Secretary Snow announced that OFAC has issued a general license that lifts most of the sanctions previously imposed against Iraq. The license permits all activities except trade in arms, certain cultural artifacts and transactions with certain Iraqi officials. Information regarding the OFAC action has been posted on the BOL OFAC page and the BOL OFAC Sanctions Matrix has been updated. 5/28/03

  • FRB Issues Final Rule to Update Routing Numbers
    The FRB is publishing a final amendment to appendix A of Regulation CC that updates the routing numbers for Federal Reserve Banks and Federal Home Loan Banks. 68FR31592 (txt) 68FR31592 (pdf) 5/28/03

  • FRB Issues Final Transition Rules for Reg C
    The FRB is publishing final amendments to the official staff commentary to Regulation C (Home Mortgage Disclosure). The amendments provide transition rules for applications received before January 1, 2004, on which final action is taken on or after January 1, 2004. 68FR31589 (txt) 68FR31589 (pdf) [This was previously announced on BOL] 5/28/03

  • Casino Gambled and Lost
    FinCEN announced the assessment of a $350,000 civil money penalty against the Greenville Riverboat, LLC d/b/a Lighthouse Point Casino for the willful failure to file 142 Currency Transaction Reports by Casino (CTRC) forms. The casino had a BSA program, but no CRTCs were filed for almost two years. FinCEN CMP 5/28/03

  • Regulators Place Basel II Discussion Documents Online
    Documents developed by the FDIC, OCC, and FRB regarding the proposed revisions to the Basel Accord are available online. For the next several months, the agencies will be discussing U.S. implementation plans with bankers and other interested parties and soliciting comments on draft documents relating to implementation. FRB Basel II Accord 5/28/03

  • FDIC Schedules Cyber Security Symposium
    The FDIC has announced that on June 13, 2003, it will host in partnership with the George Mason University School of Law a free day-long symposium regarding senior management's role in cyber security. The sessions will be held at the FDIC's L. William Seidman Center, Arlington, Virginia. FDIC PR    Agenda    Registration Form 5/28/03

  • Credit Unions Post 5% Growth
    NCUA announced that federally insured credit unions posted a 5% growth in assets during the first three months of 2003. NCUA PR 5/28/03

  • Reg C Transition Rules Released
    The FRB has published an amendment to the official staff commentary to Reg C that provide lenders with guidance on collecting and reporting information when an application for a home mortgage loan is received before and final action is taken after the effective date of revised Reg C, January 1, 2004. The revision requires lenders to report new data items, including information about loan pricing. FRB PR Official Staff Commentary 5/27/03

  • FRB Interpretative Letters Online
    The FRB has made available online Interpretative Letters addressing regulatory capital status of a bank's indemnified agency securities lending program, exemption from quantitative limits of section 23A of the Federal Reserve Act, and title abstracting activities for aircraft as closely related to banking. Capital status Section 23A exemption Aircraft title abstracts 5/27/03

  • OCC FAs With Failed Bank's Attorneys
    The OCC has announced that it has entered into formal agreements with the law firm Kutak Rock, LLP and the firm partner, Michael T. Lambert, who represented the failed First National Bank of Keystone, Keystone, West Virginia. The firm agreed to take certain actions with respect to representation of insured depository institutions, and Mr.Lambert agreed not to provide legal services to insured depository institutions. OCC NR 2003-40 Kutak Rock Agreement Lambert Agreement 5/27/03

  • Counterfeit Cashier's Checks Alert
    The FDIC has issued an alert regarding counterfeit cashier's checks drawn on Bank of the West, San Francisco, California. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/27/03

  • Comments Requested on FRB Proposal
    The FRB has requested comment by July 14, 2003 on a proposal to modify the method for imputing priced-service income from clearing balance investments. FRB PR Proposal 5/27/03

  • War Risks and the Economy
    The FRB has placed online a working paper, "The Effects of War Risk on U.S. Financial Markets" which measures the effects of the risks associated with the war in Iraq on various U.S. financial variables. Working Paper 5/27/03

  • OFAC Issues Interim Final Rule to Amend Iraqi Sanctions Regulations
    The general licenses authorize the following activities involving Iraq: non-commercial funds transfers (including family remittances) and related transactions, activities by the U.S. Government and its contractors or grantees, privately financed humanitarian transactions, and certain exports and reexports to Iraq. 68FR28753 (txt) 68FR28753 (pdf)5/27/03

  • FFIEC HMDA 2003 Guide Now Online
    The FFIEC has placed the Guide to HMDA Reporting: Getting It Right online. The Guide provides a summary of responsibilities and requirements, directions for assembling the necessary tools, and step-by-step instructions for reporting HMDA data. The current 2003 version should be used for guidance on collection and reporting of calendar year 2003, and the 1998 version should be used for guidance on collection and reporting of calendar year 1998 through 2002. 2003 Guide 1998 Guide 5/23/03

  • Host State Loan-to-Deposit Ratios Issued
    The FRB, FDIC, and OCC have issued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. FRB Release    OCC    FDIC    FIL-41-2003    Ratios 5/23/03

  • 37 OCC CRA Evaluations Online
    The OCC has released and placed online the results of CRA performance evaluations for the period April 15, 2003 to May 14, 2003. Of the 37 national banks reviewed, 8 were rated outstanding and 29 were satisfactory. None were needs to improve or substantial noncompliance. CRA Evaluations 5/23/03

  • U.S. Financial Institutions Allowed in Iraq
    OFAC has published an Interpretative Guidance that authorizes U.S. financial institutions to establish a presence in Iraq for the limited purpose of facilitating the transfers of non-commercial humanitarian funds, Information regarding the Guidance has been placed on the BOL OFAC page. 5/23/03

  • Weekly Bill Auctions Announcements Delayed
    The Treasury Department has postponed the announcement of its weekly 13-week and 26-week bill auctions and its monthly 2-year note auction, scheduled to be announced May 22, 2003, until further notice. This postponement is due to the statutory debt limit. Treasury JS389 5/23/03

  • FRB Requests Comments
    The FRB has issued a request for comments on proposals to approve the extension for three years, without revision, of the following reports: FR 2064, FR H-4, and the RFP and RFPQ. Request for Comment 5/23/03

  • Prospects for Economic Growth
    Learn the why FRB Governor Olson thinks the stage has been set for an improvement in the economic climate from his remarks to Minnesota Chamber of Commerce members. He indicated the recent news from oil and financial markets and consumer confidence clearly suggests that the reduction in risks associated with the situation in Iraq has had a number of favorable effects. Speech 5/23/03

  • New Money Smart Alliance Partner
    The FDIC announced that National Image, Inc. has joined its Money Smart Alliance Program. National Image, Inc. is a network of professionals dedicated to assisting the U.S. Hispanic community in the areas of employment, education and civil rights. Headquartered in Denver, CO, National Image has local chapters throughout the United States. FDIC MSPR 1003 5/23/03

  • OCC Issues Proposed Rule to Modify the Securities Offering Disclosure Rules

  • The amendments to the Exchange Act give the OCC the authority to administer and enforce a number of the Sarbanes-Oxley Act's new reporting, disclosure, and corporate governance requirements with respect to national banks that have a class of securities registered under the Exchange Act. They are also proposing to make conforming revisions to the rules which prescribe securities offering disclosure rules for national banks that issue securities that are not subject to the registration requirements of Securities Act of 1933. 68FR27753 (txt) 68FR27753 (pdf) 5/22/03

  • Counterfeit Cashier's Checks Alert
    The Federal Reserve Bank of San Francisco has issued an alert regarding counterfeit cashier's checks drawn on the Community Bank of Arizona, N.A., Wickenburg, Arizona. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/22/03

  • Protection of Critical Financial Infrastructure
    Learn what actions the government and private industry are taking to protect the critical financial infrastructure. Read the comments of Treasury Deputy Assistant Secretary Dawson at a meeting of Protecting the Financial Sector, a Chicago public and private partnership. He noted the actions of Treasury are guided by the following three principles: 1) the safety of the tellers, loan officers, and technicians that make up the financial infrastructure; 2) ensuring that our financial institutions continue to function even during - especially during - times of stress; and 3) the promotion of decentralized decision-making and problem-solving, both as financial institutions prepare for disruptions and as they weather them. Treasury JS-397 5/22/03

  • Fedwire Online Operating Hours to be Expanded
    The FRB has announced that the Fedwire Online Funds Service will open three and one-half hours earlier than the current opening time of 12:30 a.m. ET. The closing time for the service will remain 6:30 p.m. ET. The scheduled timeframe for full implementation of the expanded operating hours is the second quarter of 2004. Fedwire participants will be notified at least sixty days before the specific effective date of the new hours. FRB Notice 5/22/03

  • Greenspan -The Economy Outlook
    In testimony before the Joint Economic Committee of Congress, Chairman Greenspan noted that one reassuring development that has been sustained through this extended period of economic weakness has been the performance of productivity. He indicated the economic fundamentals--including the improved conditions in financial markets and the continued growth in productivity--augur well for the future. Testimony 5/22/03

  • Thrift First Quarter Interest Rate Measures
    OTS has released the Preliminary Thrift Industry First Quarter Interest Rate Measures. OTS Release 5/22/03

  • Some Non-Local Checks to Become Local
    Effective July 22, 2003, the FRB has announced the deletion of obsolete numbers from and the addition of new numbers to the list of routing numbers in Appendix A to Reg CC for checks drawn on Federal Reserve Banks and Federal Home Loan Banks. In addition, the FRB gave notice of plans to reduce the number of check processing regions from 44 to 32. As a result, some checks that are currently designated non-local items will become local checks and be subject to faster availability schedules. Implementation of the reductions will occur in phases beginning the last half of 2003 and will be completed by the end of 2004. In order to give the affected financial institutions time to make processing changes and, if necessary, make adjustment to availability schedules and notify customers, the notice of each phase will published in the Federal Register at least 60 days before the effective date. FRB PR Final Rule and Amendments 5/21/03

  • CTR Revisions May Be in the Works
    FinCEN has published a notice and request for comment on proposed revisions to the Currency Transaction Report and editorial changes to the instructions. Several editorial changes would be made in this revision, and two data collection blocks would be added to Part II for Foreign cash in and Foreign cash out. A new item 37a would be added in Part III for listing a foreign country code. 68FR27143 (txt) 68FR27143 (pdf) 5/21/03

  • OCC Issues BSA/AML Bulletin
    The OCC has issued a bulletin that gives notice of the revocation of the designation of Ukraine as a primary money-laundering concern and a proposed rule to impose "special measures" against Nauru. OCC Bulletin    Revocation Notice    Proposed Rule 5/21/03

  • Seychelles Advisory Withdrawn
    FinCEN has withdrawn its Advisory 2 regarding the Republic of Seychelles. The enhanced scrutiny of transactions involving the Republic of Seychelles is no longer necessary. FinCEN 5/21/03

  • FedACH NOC Information Online
    The online services offered by FedACH e now include derived returns and notifications of change. Operating Circular 4 was amended to reflect the new services. FRB Ser Operating Circular 4 5/21/03

  • Thrifts Set Income Records
    OTS announced that in the first quarter of 2003 the nation's thrift industry set records for net income, profitability, equity capital and mortgage refinancing volume. The industry earned a record $3.33 billion for the quarter, nine percent higher than the previous record. OTS 03-17    Selected Indicators    Charts    Highlights    Charge-Off Rates 5/21/03

  • Online FFIEC Guidance Booklets
    The FFIEC has made available online two revised guidance booklets, one for institutions and examiners regarding business continuity planning and the other for examiners regarding the supervision of technology service providers. Business Continuity Planning Booklet    Supervision of Technology Service Providers Booklet OCC Bulletin ASCII WORD OTS 03-18 5/21/03

  • FCRA and the FTC
    In testimony before the Senate Committee on Banking, Housing and Urban Affairs, the Director of the FTC Bureau of Consumer Protection gave an overview of the FCRA and noted that the FTC regards consumer education as vital to the FCRA because the statute contains self-enforcing elements, such as the right to dispute inaccurate or incomplete information. Testimony 5/21/03

  • Nine Enforcement Actions Announced
    The OCC announced nine new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks located in Maryland, Illinois, North Carolina, Florida, Oregon and Alabama. OCC NR 2003-37 5/20/03

  • Stolen Cashier's Checks Alert
    The FDIC had issued an alert regarding outdated cashier's checks that have been stolen from The Bank of Abbeville, Abbeville, South Carolina. The stolen checks are in circulation. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/20/03

  • Financial Education Initiative Announced
    The FRB announced a broad initiative to provide consumers with more resources for making smart financial decisions. The program includes the introduction of public service messages, a new brochure, enhancements to the System's financial education web site, and the announcement of upcoming System-sponsored programs and events. FRB PR 5/20/03

  • FinCEN Extends Exception to Travel Rule
    FinCEN is giving notice that it is extending, until December 1, 2003, a conditional exception to the Travel Rule that is due to expire on May 31, 2003. The exception permits financial institutions to substitute coded information for the true name and address of a customer in a funds transmittal order. The purpose of the extension is to permit FinCEN to perform a study of the alternatives to continuing the conditional exception. 68FR26996 (txt) 68FR26996 (pdf) 5/19/03

  • HOEPA APR Reference Rates for April Released
    The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in April will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, use the yield in effect on the 15th of the month that precedes the month you received the application. FRB Daily Rate    FRB Weekly Rates 5/19/03

  • AML Non-cooperative Countries List Updated
    The OCC has updated an Advisory Letter which lists the countries identified by the FFIEC as non-cooperative in the fight against money laundering. OCC AL 2003-4 5/19/03

  • FinCEN Issues Final Rule to Amend the Foreign Bank Account Report Requirements
    FinCEN is amending the regulations implementing the Bank Secrecy Act to reflect that enforcement authority with respect to the foreign bank account report requirements of 31 CFR part 103 has been delegated from FinCEN to the Commissioner of the Internal Revenue Service. 68FR26489 (txt) 68FR26489 (pdf) 5/16/03

  • FFIEC UBPR User's Guide Online
    The FFIEC has placed the User's Guide for the Uniform Bank Performance Report online. The guide contains basic guidelines for using the UBPR, including methods of analyzing the report, technical information and ratio definitions. Total Report Table of Contents 5/16/03

  • T Bill Auction Announcement Delayed
    The Treasury Department has postponed the May 15, 2003 announcement of its weekly 13-week and 26-week bill auctions until further notice. Treasury JS376 5/16/03

  • OTS Cost of Funds Reports Released
    The OTS has released a current and a historical National Monthly Median Cost of Funds Ratio to SAIF - Insured Institutions report. Current Report Historical Report 5/16/03

  • Tracking Saddam's Money
    The successful joint efforts of government agencies to track down, freeze, and repatriate to the people of Iraq assets that have been systematically looted by Saddam Hussein, his family, and his cronies was described to a House subcommittee by Treasury General Counsel Aufhauser. On March 20, $1.7 billion in Iraqi assets frozen by the 19990 economic sanctions were deposit in a special FRB account. Since March 20, over 1.2 billion addition funds have been identified. Testimony 5/15/03

  • Counterfeit Cashier's Checks Special Alerts
    The FDIC has announced that counterfeit cashier's checks drawn on The Jacksonville Bank, Jacksonville, Florida; California National Bank, Century City, California; and Firstbank - West Branch, West Branch, Michigan are currently in circulation. The information has been added to the BOL Alerts & Counterfeits page. 5/15/03

  • History Provides Answers to Current Questions
    The answers to many current banking questions including: what activities are incidental to the "business of banking", when do State laws effect a national bank, and if the State law applies who enforces it, are found in the history of the origination of the banking system according to a presentation by OCC General Counsel Williams to the OCC Alumni Association. Speech 5/15/03

  • Your Institution Could Be Eligible
    The Community Development Financial Institutions (CDFI) Fund will award $18 million this year in financial incentives through its Bank Enterprise Award (BEA) Program to certain eligible FDIC-insured institutions that comply with the program's requirements and submit an application for consideration. The average award last year was $284,248. FDIC NR Application Information 5/15/03

  • NCUA Disaster Relief Policy Activated
    The NCUA has activated its disaster relief policy to assist credit unions and members in counties eligible for aid in Alabama, Kansas, Missouri, Oklahoma and Tennessee, where offices and homes were destroyed by multiple tornadoes in the last two weeks. NCUA NR03-0514-2 5/15/03

  • OFAC Rulings Online
    OFAC has made available online two Interpretative Ruling entitled "Equipment to manufacture goods which may be sold to Iran" and "Export/aircraft safety (Iran)". OFAC Interpretative Rulings    Equipment Ruling    Export Ruling 5/14/03

  • What Is The Color Of Your Money?
    Soon it will be a combination of copper, blue, peach and green. The new $20 bill has been revealed and it contains all those colors, but some are hard to spot on purpose to foil counterfeiters. Read all about the changes and see what the new bill looks like in a BOL Exclusive Article, "All About the New $20." 5/14/03

  • Fraud Alert - Internet Payments With Fraudulent Checks
    The OCC has issued a fraud alert regarding fraudulent cashier's and official checks used to make payments to defraud consumers in connection with legitimate sales of goods, primarily over the Internet. If one of the instruments is presented to a financial institution, it is directed to hold the item and call the local FBI office. OCC Alert 2003-8 WORD ASCII 5/14/03

  • Administration's International Economic Agenda
    Treasury Secretary Snow outlined the Administration's international economic agenda in a presentation before the House Committee on Financial Services. He noted that rebuilding Iraq and Afghanistan is clearly a key priority for the United States and the international community. Speech 5/14/03

  • BB&T/First Virginia Merger Approved
    The Federal Reserve Board has announced its approval of the application and notice by BB&T Corporation, Winston-Salem, North Carolina, to merge with First Virginia Banks, Inc., Falls Church, Virginia, and thereby acquire its banking and non-banking subsidiaries. Order of Approval 5/14/03

  • New FRB Working Papers Online
    The FRB has made available online the latest working papers in the Finance and Economic Discussion Series. Topics include, "The Long-Run Relationship between House Prices and Income: Evidence from Local Housing Markets"; "Foreclosing on Opportunity: State Laws and Mortgage Credit"; and "Monetary Policy and the Yield Curve". FRB Working Papers    5/14/03

  • Deposit Insurance Reform
    The Treasury Department, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Office of Thrift Supervision have submitted draft legislative language on deposit insurance reform to the U.S. Senate Banking Committee. Summary    Draft Legislation    Joint Agency Letter 5/13/03

  • Online Call Report Validation Report Criteria
    The March 2003 Call Report validation criteria has been posted by FFIEC on its Web site. FFIEC 5/13/03

  • USA PATRIOT Act Preparedness Checklist
    OTS has issued a checklist for institutions to use for CIP compliance and updating established BSA anti-money laundering requirements. A series of questions aid in the analysis of current BSA/AML programs and assist in the development of new CIP programs. Checklist    CIP Q & A    CEO Memorandum    OTS Release 03-16 5/12/03

  • Senior Officers Respond To Survey
    The FRB has released the results of the April 2003 Senior Officer Opinion Survey on Bank Lending Practices. The survey focused on the changes regarding the supply of and demand for bank loans over the last three months. Full Report    Charts pdf    ASCII    Table 1    Table 2 5/12/03

  • OCC Closes Wisconsin Bank
    The First National Bank of Blanchardville, Blanchardville, Wisconsin, was closed by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation was appointed receiver. OCC NR2003-35    FDIC PR-47-2003 5/12/03

  • Iraq Sanctions Relaxed and UNITA Sanctions Terminated
    Four General Licenses regarding transactions with Iraq have been granted and the President has issued an Executive Order terminating the emergency with respect to the actions and policies of UNITA. For more information, see the summary on the BOL OFAC page. 5/9/03

  • Assets Blocked, Entities Added and Removed
    All property and interests in property of four entities, wherever located, have been blocked by OFAC pending a narcotics trafficking investigation. The names have been integrated into OFAC's SDN list with the descriptor, BPI-SDNT. In addition, many entities have been removed from the SDN list as a result of the Executive Order regarding UNITA. For more information, see the summary on the BOL OFAC page. 5/9/03

  • CIP Rules Hit Federal Register
    The final rules on Customer Identification Program requirements were published in the Federal Register today. 68FR25089 (txt) 68FR25089 (pdf)5/9/03

  • Greenspan On Corporate Governance
    Chairman Greenspan noted that a reputation for honest dealings within a corporation is critical for effective corporate governance, but even more important is the reputation of the corporation itself as seen through the eyes of outsiders. His remarks were made at the 2003 Conference on Bank Structure and Competition, Chicago, Illinois. He also discussed the benefits and risks associated with derivatives plus incentives for effective risk management. Speech 5/9/03

  • FCRA Information Sharing Provisions Before Congress
    Congress is evaluating the FCRA provisions regarding the uniform national standards for financial information sharing which are scheduled to sunset at year end. In testimony before the House Committee on Financial Services, Assistant Treasury Secretary Abernathy explained the important role the standards play in the fight against identity theft. Testimony 5/9/03

  • FRB Bulletin Articles Online
    Articles from the 2003 FRB Bulletin are available online. The most recent addition, "U.S. International Transactions in 2002", covers the widening of the U.S. trade deficit. May 2003 Bulletin 5/9/03

  • First Quarter BIF & SAIF Financials
    The FDIC has released the First Quarter 2003 Executive Management Report regarding the financial results of the BIB and SAIF insurance funds. Executive Management Report 5/9/03

  • Ruling Online and SDGT Entries Changed
    OFAC announced that a new Interpretative Ruling is available online and that changes to three former SDGT entries have resulted in new entries being added to the OFAC list. Information regarding the Interpretative Ruling and the OFAC changes can be found on the BOL OFAC page. 5/8/03

  • Agencies Seek Comments
    The OCC and the FRB are seeking comments on a proposal to extend for three years without revision a current information collection form, FFIEC 030. Comments are due on or before July 7, 2003. Joint Agency Notice 5/8/03

  • Credit Report Shows Gains
    The G.19 Consumer Credit Report for March 2003 had been released by the FRB. FRB G.19 5/8/03

  • BIF Year-End Status Projected
    Chairman Powell stated the need for deposit insurance reform while reporting on the projected year-end status of BIF following a meeting of the FDIC Board of Directors. FDIC PR 46-2003 FDIC First Quarter Funds Report PR 45-2003 5/8/03

  • Fed Funds Rate Unchanged

  • The Federal Open Market Committee left its target for the federal funds rate unchanged at 1-1/4 percent. FRB Press Release 5/7/03

  • New Money Unveiled May 13th

  • Previously, officials had indicated the new $20 bill would be unveiled March 27th. That date came and went with no unveiling and no explanation, but the new date, May 13th, appears to be a certainty. The new design for the $20 notes will be revealed on that date, and the bills will be in circulation later in the year. The new design will retain current security features, including watermarks similar to the portrait and visible when held up to a light, enhanced security threads that glow under ultraviolet light, microprinting, and color-shifting ink that changes color when the note is tilted. New Money Announcement 5/7/03

  • Credit Cards, Cash Payments, and Consent Orders

  • Saks Incorporated and an Illinois bank have entered into consent orders with the OCC which require numerous actions be taken to bolster the Bank Secrecy Act compliance of the entities. The actions appear to stem from the way certain credit card transactions were handled, including the receipt of cash payments. Consent Order - National Bank of the Great Lakes; Consent Order - Saks Incorporated 5/7/03

  • FDIC Encourages Help to Tornado Areas

  • The FDIC is encouraging banks to work constructively with borrowers in affected areas who, because of the tornadoes, are experiencing difficulties beyond their control. The FDIC has prepared guidelines which state that extending repayment terms, restructuring existing loans or easing terms for new loans, if done in a manner consistent with sound banking practices, can contribute to the health of the community and serve the long-term interests of the lending institution. FDIC Guidelines 5/7/03

  • May CRA Exams from FDIC

  • The FDIC has published its list of banks that will be undergoing CRA exams in May. May 2003 CRA Exam Schedule 5/7/03

  • Commercial RE Loan Problems Result in Penalty

  • An Illinois banker has been assessed a $20,000 civil money penalty by the FDIC amid allegations he failed to ensure that the bank obtained appraisals before underwriting, approving and funding large commercial real estate loans. Numerous loans were found to have been booked, between September 1999 and January 2001, without timely written appraisals. FDIC PR-43-2003; Order FDIC-03-031k. 5/7/03

  • Falsified Docs Lead to Removal and Penalty

  • The FDIC issued a removal and prohibition order and imposed a civil money penalty against Daniel J. Schmitt, a director of the Hartford-Carlisle Savings Bank, Carlisle, IA, which was closed by the Iowa Superintendent of Banking on January 14, 2000. The order and penalty stem from allegations that Schmitt falsified documents for two loans disguising the true purpose for which the loan proceeds were ultimately used. FDIC PR-44-2003; Order FDIC-02-089e; Order FDIC-02-088k. 5/7/03

  • Freddie and Fannie Release New Form

  • A new joint Uniform Residential Loan Application form has been released by Freddie Mac and Fannie Mae. NOTE: The new form is not to be used for applications received prior to January 1, 2004. The Fannie Mae announcement states the new form is the result of changes to Reg C and the USA PATRIOT Act. In recent amendments to Regulation B, the FRB noted that the model loan application form contained in Reg B's Appendix B is issued by Fannie Mae and Freddie Mac. The current Appendix B form should still be followed until the FRB publishes a revised form reflecting ethnicity and racial designations to dovetail with the new Freddie Mac/Fannie Mae form. Revised Application Form Fannie Mae Guide Recent Reg B Amendments 5/6/03

  • Corporate Governance and Non-Public Financial Institutions

  • The FRB, OCC and OTS have issued a joint statement regarding whether or not the agencies expect small, non-public banking organizations to comply with Sarbanes-Oxley and the corporate governance proposals from the NYSE and NASDAG. FRB Statement    FRB SR 03-08 OCC release 5/6/03

  • FinCEN Provides More AML Help to MSBs

  • Three guides are available on FinCEN's sight to help the anti-money laundering efforts of Money Services Businesses. The three guides cover Bank Secrecy Act Requirements,Reporting Suspicious Activity, and Money Laundering Prevention. MSB Guides 5/6/03

  • Online Consumer Vehicle Leasing Guide

  • The FRB has made available on its Web site a quick consumer guide regarding closed-in leases. The guide is designed to help consumers compare offers and negotiate leases that best fit their needs. A sample lease form is included, along with a glossary of common leasing terms. Leasing Guide 5/6/03

  • FedLine Web Services Enhanced

  • Starting May 12, 2003, several new FedLine services will be available online. They include automated branch set-up, cash orders armored carrier selection and validity edits for currency amounts. FRB Services 5/6/03

  • Fake Instruments Alert

  • The OCC has issued a Fictitious Financial Instruments Alert regarding worthless sight drafts, bills of exchange, due bills and redemption certificates. Included in the alert are instructions for handling such instruments if they are presented. OCC Alert 5/6/03

  • Securities and Commodities AML Proposed Rules Published in Federal Register

  • Treasury and FinCEN have published in the Federal Register three separate proposed rules under the USA Patriot Act that would expand anti-money laundering regulation to commodity trading advisors and securities investment advisers, as well as require suspicious activity reporting by futures commission merchants. [This was previously announced on BOL]. Commodities    Futures Commission Merchants    Investment Advisers 5/5/03

  • All Assets of Firm Blocked

  • All property and interests in property of TRANSPORTING, LLC, wherever located, have been blocked by OFAC pending a narcotics trafficking investigation. Although the company is not now an SDNT, its name has been integrated into OFAC's SDN list. For more information, see the summary on the BOL OFAC page. Summary 5/5/03

  • Additional OFAC CMP Information Revealed

  • The weekly release of information regarding civil money penalties issued by OFAC now includes the year the violation occurred and more detail on the type of violation. The current report lists two violations by Deutsche Bank A.G. that occurred in 1999 and 2000. OFAC CMP 5/5/03

  • Deposit Insurance Premiums May Increase

  • Chairman Powell, in a presentation before the Nebraska Bankers Association, noted that the Bank Insurance Fund is very close to the 1.25 premium trigger. He indicated that the FDIC can never rule out surprises that would force the FDIC to charge high premiums on the industry at the worst possible time. FDIC PR-40-2003 5/5/03

  • Open Meeting Scheduled

  • The FDIC has announced that an open meeting of the Board will be held in Washington, D.C. on May 7, 2003. Agenda items include: BIF assessment rates, SAIF assessment rates and a resolution regarding deposit insurance coverage of Living Trust accounts. FDIC Notice 050703 5/5/03

  • Online Report Form Instructions

  • The instructions for completing the March 030 Form, Foreign Branch Report of Condition, are now available online at the FFIEC website. FFIEC 030 5/2/03

  • Small CU Working Group Formed

  • NCUA has announce the creation of an internal working group that will identify problems peculiar to small credit unions and suggest possible options to increase their competitiveness and financial stability. NCUA NR03-0502 5/5/03

  • New SAR Form

  • FinCEN has released a new SAR Form and new Specifications for the Magnetic Media Filing of SARs. Please note the new SAR form is NOT to be used until July 1, 2003. The new forms have added two categories of suspicious activity, Terrorist Financing and Identity Theft, in box 35. The current SAR form will not be accepted after December 31, 2003. SAR Form    Magnetic Media Specifications 5/2/03

  • FRB Written Agreement With Ohio Bank

  • The Federal Reserve Board on Thursday announced the execution of a Written Agreement by and among The First State Bank of West Manchester, West Manchester, Ohio, the Federal Reserve Bank of Cleveland, and the Ohio Division of Financial Institutions regarding the management and lending policies of the bank. Written Agreement 5/2/03

  • $3 Billion Visa/MC Debit Card Settlement

  • Just hour before a class action lawsuit was scheduled to go to trial, Visa reached a $2 billion settlement with Wal-Mart and thousands of other retailers who claimed they had been damaged by the forced acceptance of Visa and MasterCard branded debit cards. The retailers also contended were forced to pay "'unjustifiably high fees" on the cards. MasterCard had reached a $1 billion settlement with the retailers earlier in the week. Read more about the case in the "Cases In The News" section of BOL Court Watch where BOL has been monitoring the progress of the case. Cases In The News 5/2/03

  • G.5 Foreign Exchange Rates Released

  • The FRB has released the May I, 2002 G.5 table which shows the average foreign rates of exchange in April 2003 with comparable figures for other months. FRB G.5 5/2/03

  • Comments Make Difference: Altered CIP Rules Released

  • The regulators have issued the long awaited final rules implementing section 326 of the USA PATRIOT Act that require financial institutions to establish procedures to verify the identity of new customers. Numerous changes were made to the initial proposal, in part due to the comments received from financial institutions. For an analysis, read the BOL article, "CIP FINAL RULES: 10 Quick Changes" on the USA PATRIOT Act page. Section 326 Final Rules 5/1/03

  • HSBC Bank USA Written Agreement

  • The Federal Reserve Board has announced the execution of a Written Agreement by and among the HSBC Bank USA, Buffalo, New York, the Federal Reserve Bank of New York, and the New York State Banking Department regarding the bank's compliance with the provisions of the Bank Secrecy Act and Reg H. Written Agreement 5/1/03

  • Basel Accord Comments Sought

  • The Basel Committee on Banking Supervision has released for comment its third consultative paper on the new Basel Capital Accord. The OCC, FRB and FDIC plan to issue an Advance Notice of Proposed Rulemaking (ANPR) in the next few months. The ANPR will be based on the Committee's paper and will focus on how the U.S. agencies intend to implement domestic changes that reflect the specific nature of U.S. banks and banking. Comments must be submitted by July 31, 2003. Basel Committee    OCC    FRB    FDIC    FDIC FIL-31-2003 5/1/03

  • Treasury Issues May 2003 Quarterly Refunding Statement

  • The May 2003 Quarterly Refunding Statement was announced by Assistant Secretary Roseboro along with future auction schedule changes regarding the auction of 5-year notes on a mid-monthly basis and the reopening of 10-year notes on an intra-quarterly basis. Treasury JS-223 5/1/03

  • Optimism Exists Despite Weak Economy

  • Weakness in the economy exists, but there are reasons for optimism according to a report issued by Treasury Borrowing Advisory Committee to the Secretary of the Treasury. Weakness in the key sectors of consumption, investment, and government spending resulted in economic growth nearly three quarter of a point below expectations, but consumer confidence has begun to improve. Treasury JS-224 5/1/03




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