Friday, January 19, 2018

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

OCC semiannual risk perspective
The OCC has issued its Semiannual Risk Perspective for Fall 2017, which covers risks facing national banks and federal savings associations based on data as of June 30, 2017. The report presents data in four main areas: the operating environment, bank performance, trends in key risks, and supervisory actions. It focuses on issues that pose threats to those financial institutions regulated by the OCC and is intended as a resource to the industry, examiners, and the public. Highlights include:
  • The credit environment continues to be influenced by aggressive competition, tighter spreads, and slowing loan growth. These factors are driving incremental easing in underwriting practices and increasing concentrations in select loan portfolios, leading to heightened risk if the economy weakens or markets tighten quickly.
  • Operational risk continues to challenge banks because of increasing complexity of cybersecurity threats, use of third-party service providers, and increasing concentrations in third-party service providers for some critical operations.
  • Compliance risk remains elevated as banks continue to manage money laundering risks, as well as consumer compliance risks, particularly due to the increasing complexity in consumer compliance regulations.

Complimentary Fraud Detection and AML Seminars
5 CAMS, 6.5 CAFP, 6.5 CRCM, 5 CPE Credits
Register today for a complimentary industry-accredited seminar near you, as industry experts discuss BSA/AML and fraud hot topics including: best practices for human trafficking investigations; crime ring detection; emerging fraud trends and prevention strategies; and enhanced due diligence for high-risk customer groups.
— Verafin

Bureau to forgo Fed funding for Q2
In a marked departure from earlier practice, the CFPB will not seek funding from the Federal Reserve for its second quarter of FY 2018 operations. In a letter to Federal Reserve Board Chair Janet Yellen, Acting CFPB Director Mick Mulvaney notified the Board that the Bureau is "requesting $0." Under the Dodd-Frank Act, the Fed is required to transfer to the Bureau each quarter "the amount determined by the [CFPB] Director to be reasonably necessary to carry out the authorities of the Bureau under Federal consumer financial law, taking into account such other sums made available to the Bureau from the preceding year (or quarter of such year.)" Mulvaney states in his letter that he has been assured that the Bureau has sufficient funds to carry out its statutory mandates for the quarter.

Free Webinar: Delivering Relevant and Engaging BSA Program Training
As a manager, it is your duty to help your team stay up-to-date on the latest BSA and fraud industry trends, schemes, and sanctions. In this webinar, we will provide best practices for BSA/AML program building and succession planning, including the most effective ways for delivering content, creating training materials, and conveying new procedures.
— Banker's Toolbox

Interagency statement on implications of new tax law
The OCC and FDIC have distributed an Interagency Statement on Accounting and Reporting Implications of the New Tax Law, issued by the OCC, Federal Reserve Board, and the FDIC. Changes required as a result of the new law, which was enacted on December 22, 2017, are relevant to December 31, 2017, financial statements and regulatory reports, including Call Reports. Among other things, the guidance clarifies
  • that changes in deferred tax assets and deferred tax liabilities resulting from the lower corporate income tax rate and other applicable provisions of the new tax law should be reflected in an institution's income tax expense in the period of enactment.
  • how to resolve the disproportionate tax effects in accumulated other comprehensive income as a result of the remeasurement of deferred tax assets and liabilities.
  • the impact of the new tax law on regulatory capital.

Disclosure Compliance Automation
Does your bank struggle with its lending disclosures? Looking for a way to automate the distribution and tracking of disclosures? Learn how to put your disclosure management process on autopilot with loan approval software from AccuSystems.
— AccuSystems

December residential construction activity
HUD and the Census Bureau have jointly released statistics on new residential construction for December 2017. Details can be found in our Top Story article.

A reminder - Updated Banker Tools
Now that we are all firmly settled into 2018, here's a reminder of some Banker Tools that have recently been updated.When we update these tools, we will update these pages, so add them to your bookmarks or favorites. And if you've created a helpful tool to make your work easier, and would like to share it with other BOL users, email Andy Zavoina at

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