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#488206 - 01/24/06 07:15 PM Sudan Certification Form
Tricia Offline
Gold Star
Joined: May 2004
Posts: 458
Smack dab in the middle of IL
I just received a fax from Illinois State Treasurer regarding the Sudan Certification Form and the Act to End Atrocities and Terrrorism in the Sudan (Public Act 94-0079). I was not aware this would effect our loan applicants. From what the fax stated (and the PA) that if we hold funds for the State we must have policies and practices in place that require loan applicants to certify that they do not have prohibited ties to Sudan. Does anyone have any idea how we are to certify that our loan applicants do not have prohibited ties to Sudan? A piece of paper stating that they are not tied to Sudan?

I work at a very small community bank in central Illinois, and I can just imagine what our customers will say when we ask them to sign a piece of paper stating that they do not have any prohibited ties to Sudan!

Has anyone else established policies and practices to cover this?
_________________________
Life is the willingness to be yourself and live in harmony with others. - Dr. Cherie Carter-Scott

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#488207 - 01/27/06 03:00 PM Re: Sudan Certification Form
Tricia Offline
Gold Star
Joined: May 2004
Posts: 458
Smack dab in the middle of IL
I received a fax from CBAI (Community Bankers Association of Illinois) regarding the Sudan Certification form. They are to have a sample certification form for the loan applicant to sign in order to comply with this act available to their members on their website today. However, I have not been able to locate it on their site yet.

I am still concerned with how to implement this into our procedures. Lenders already have enough paperwork to go through with customers. They will just love to have one more to worry about (especially since it is a separate document from those automatically printed from the loan program).
_________________________
Life is the willingness to be yourself and live in harmony with others. - Dr. Cherie Carter-Scott

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#488208 - 01/27/06 06:06 PM Re: Sudan Certification Form
W. Alison Huszar Offline
New Poster
Joined: Jan 2006
Posts: 2
Certifications to the State Treasurer Concerning Sudan

Many Illinois banks recently received a letter from the Illinois State Treasurer’s office regarding a law entitled the “Act to End Atrocities and Terrorism in the Sudan” (i.e., the “Act to EAT Sudan”), which becomes effective today (January 27, 2006). This letter was accompanied by a form entitled “Certification for Financial Institutions,” and many Illinois bankers are wondering whether they must return this certification today. The answer is no.

In essence, the Act to EAT Sudan prohibits the State Treasurer from depositing funds or otherwise transacting business with any financial institution unless an authorized officer of that institution certifies that it has not at any time following the effective date of the law loaned to or invested in the Republic of Sudan or any entities doing business with or in the Republic of Sudan (the “forbidden entities” referenced in the certification form). The certification form requires financial institutions to certify that their loan customers have certified to them that they are not “forbidden entities.”

The Act also amends the Illinois Pension Code to provide that a fiduciary of a retirement system or pension fund established under the Pension Code may not directly or through a fund manager transact any business with any company unless an authorized officer of that company certifies that it has not transacted business with any “forbidden entities.”

The certification requirements in the Act to EAT Sudan do not apply to the Treasurer’s “linked deposit programs,” nor do they apply to “the purchase of depository, custodial, processing, and advisory services that are necessary to fulfill the Treasurer’s obligations and responsibilities.” We have been advised by the Treasurer’s office that this latter exception applies to all banking service contracts that the Treasurer has with Illinois banks. What is subject to certification, then?

The Treasurer maintains “market rate deposits” of state funds in over 200 Illinois banks throughout the state for liquidity purposes and to provide capital to local communities. The Treasurer’s office has informed us that these are the only deposits that will be subject to the Act to EAT Sudan’s certification requirement. However, your bank does not need to provide certification for existing “market rate deposits.” As the Treasurer’s letter states, “you must complete a new certification form before a new deposit is made or an existing deposit is renewed.” In other words, you only need to return the certification form today if you are accepting a new non-linked state deposit or renewing a non-linked state deposit today.

Keep in mind that if and when you do sign and return the certification form, you are certifying in good faith that your organization has implemented policies and practices that require all of your loan applicants to certify to you that they are not “forbidden entities.” If you have not implemented these policies and practices and you are not obtaining such certifications from your loan customers, you should neither sign nor return this form, and you may not accept new non-linked state deposits or renew non-linked state deposits.

We will continue to keep you posted as issues relating to this new law develop. Meanwhile, if you are an IBA member and have any questions, please feel free to call us at 1-800-GO-TO-IBA, or you may call Dan Wabut at the Treasurer’s office at (312)814-1700.
_________________________
W. Alison Huszar Vice President and Senior Compliance Counsel Illinois Bankers Association

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#488209 - 02/10/06 02:15 PM Re: Sudan Certification Form
HelenT Offline
New Poster
Joined: Aug 2005
Posts: 16
Illinois
Can you provide a clarification regarding "loan applicant" does this REALLY mean all consumer and commercial loan applicants? Also what do you do for indirect lending--are thte car dealerships expected to give this to all applicants that will apply for loans with banks?

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#488210 - 06/16/06 04:32 PM Re: Sudan Certification Form
Dave M_TCA Online
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Dave M_TCA
Joined: Oct 2000
Posts: 682
Wherever my most benevolent em...
Wondering if anyone had a disclosure document they were willing to share? Also, would we need this on deposit accounts as well, or just loans? I understand the letter specifies "loaned to or invested in".
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David J Mulkerin, CRCM
All opinions expressed are mine and not those of my employer and are not to be taken as legal advice.

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#488211 - 06/21/06 03:03 PM Re: Sudan Certification Form
Oursisnottoreasonwhy Offline
Gold Star
Oursisnottoreasonwhy
Joined: Nov 2004
Posts: 489
Central Illinois
http://www.ilbanker.com/Adobe/Sudan_Loan_Applicant_Certification.pdf

Link to sample form on IBA Website. Everything I have read indicates loan customers only.

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#488212 - 06/21/06 04:33 PM Re: Sudan Certification Form
arb Offline
100 Club
Joined: Jan 2005
Posts: 102
Illinois
What if we did not receive the notice from the State?

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#488213 - 06/21/06 04:43 PM Re: Sudan Certification Form
Dave M_TCA Online
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Dave M_TCA
Joined: Oct 2000
Posts: 682
Wherever my most benevolent em...
Thanks Ours! That's perfect. When I looked up the cite noted on the form, it does specify "loan applicants".

arb, if you didn't get the form, maybe you don't have any of the deposits? (just my guess, FWIW)
_________________________
David J Mulkerin, CRCM
All opinions expressed are mine and not those of my employer and are not to be taken as legal advice.

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#488214 - 08/01/06 09:07 PM Re: Sudan Certification Form
Dave M_TCA Online
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Dave M_TCA
Joined: Oct 2000
Posts: 682
Wherever my most benevolent em...
We are purchasing mortgages from a third party and the question has come up, do we require that third party (located in a different state, but the loan applicants are here in Illinois) to serve up our Sudan form to the applicants that will become our customers? The law says "loan applicants" but I'm thinking that would be a technicality since they aren't our applicants. Spirit of the law and all that. Anyone have any experience with this?
_________________________
David J Mulkerin, CRCM
All opinions expressed are mine and not those of my employer and are not to be taken as legal advice.

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#488215 - 09/06/06 06:46 PM Re: Sudan Certification Form
Dave M_TCA Online
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Dave M_TCA
Joined: Oct 2000
Posts: 682
Wherever my most benevolent em...
...bump...
_________________________
David J Mulkerin, CRCM
All opinions expressed are mine and not those of my employer and are not to be taken as legal advice.

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#709751 - 04/02/07 01:35 PM Re: Sudan Certification Form Dave M_TCA
Dave M_TCA Online
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Dave M_TCA
Joined: Oct 2000
Posts: 682
Wherever my most benevolent em...
Good News!

Pursuant to a recent court decision regarding the Illinois Sudan Act and pending remedial legislation, the Treasurer’s Office is no longer enforcing the Sudan Act and therefore is no longer requiring financial institutions to submit the certification forms previously required under the Act. In addition, the fiduciary of pension funds under the Illinois Pension Code are no longer required to provide certifications previously required under the Act.

http://www.state.il.us/treas/SudanActCert.aspx
_________________________
David J Mulkerin, CRCM
All opinions expressed are mine and not those of my employer and are not to be taken as legal advice.

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