Top Stories for July 2005

Special Alerts Issued Regarding Counterfeit Official Checks, Cashier's Checks, And International Money Orders

The FDIC has issued three Special Alerts regarding counterfeit cashier's checks drawn on State Bank, La Grange, Texas; counterfeit official checks drawn on Irwin Bank & Trust Company, Irwin, Pennsylvania; and counterfeit TravelersExpress International Money Orders. Information concerning the counterfeit items has been posted on the BOL Alerts & Counterfeits page.   7/29/05

BSA/AML Examination InfoBase Released

The FFIEC has announced the release of its BSA/AML Examination InfoBase, an automated tool for examiners and financial industry. The InfoBase features the entire FFIEC BSA/AML Examination Manual, including background materials, examination procedures, and appendices, as well as FAQs and links to other resources that may be helpful in understanding BSA/AML requirements and examination expectations.
InfoBase   7/29/05

OCC Handbook Revised

The Home Mortgage Disclosure booklet, a part of the Comptroller's Handbook for Consumer Compliance, has been revised to incorporate the FRB changes to Regulation C that require lenders to include additional information on their HMDA LARs.
Handbook   7/29/05

FTC Wins $10 Million Judgment Against Fraudulent Debt Collectors

The FTC has won a $10.2 million judgment against a debt- collection operation and its principals who are also permanently barred from conducting debt-collection activities.
FTC NR; Judgment  7/29/05

Credit Underwriting Standards Survey Results Released

The OCC has released the results of its eleventh annual Survey of Credit Underwriting Practices which indicate a significant easing in both commercial and retail credit underwriting standards over the past year.
Survey Results   7/29/05

Second Quarter A & L Price Tables Published

OTS has published Selected Asset & Liability Price Tables for the Second Quarter 2005.
Tables   7/29/05

Counterfeit Treasury Checks Special Alert

The FDIC has issued a Special Alert regarding two counterfeit scams involving U.S. Treasury checks. Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.   7/28/05

VoIP Guidance Issued

The FDIC has issued a FIL announcing Guidance to financial institutions regarding the security risks associated with voice over Internet protocol (VoIP), the delivery of traditional telephone voice communications over the Internet.
FIL; Guidance   7/28/05

Prescreen Opt-out Notice Rule Takes Effect August 1

Remember beginning August 1, 2005, financial institutions and other companies that send "prescreened" solicitations of credit or insurance to consumers will be required to provide simple and easy-to-understand notices that explain consumers' right to opt out of receiving future offers. The FTC, as required by FACTA, issued a Final Rule on January 31, 2005, which specified the format, type size, and manner for these opt-out notices.
FTC Final Rule FTC Consumer Brochure   7/28/05

New Edition Of Beige Book Released

The FRB has released a new edition of the Beige Book based on information collected on or before July 18, 2005.
Beige Book Summary; Full Report   7/28/05

Community Developments Investments On-Line Newsletter Posted

The OCC has posted online the Summer 2005 edition of the Community Developments Investments newsletter which features discussion of "double bottom line" investments.
Community Developments Investments   7/28/05

FRB And USA Today Join Forces To Teach Students

The FRB and USA Today have launched a new online project to teach middle school and high school students about economics and personal finances by challenging them to construct a newspaper front page. Participating students will be provided a template of the front page of The Fed Today and will utilize a FRB education web site for information needed to complete the project.
FRB Education Site; The FED Today   7/27/05

International Reserve Position Update

An update to the U.S. International Reserve Position has been posted by Treasury and includes data as of July 22, 2005.
Reserve Position   7/27/05

Comptroller and OTS Director Nominees Appear Before Senate

John C. Dugan, Nominee for Comptroller of the Currency, and John M. Reich, Nominee for Director, Office of Thrift Supervision, both appeared before and presented statements to the Senate Committee on Banking, Housing, and Urban Affairs.
Dugan Statement; Reich Statement   7/27/05

Counterfeit Cashier's Checks Special Alert

The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on Ohio Heritage Bank, Coshocton, Ohio. Information concerning the counterfeit checks has been posted on the
BOL Alerts & Counterfeits page.   7/26/05

Merger Report Presented To Congress

The Annual Merger Report required by the Bank Merger Act has been presented to Congress by the FDIC. The report covers the merger applications that were approved by the FDIC during the year 2004.
Merger Report   7/26/05

Spyware Guidance Issued

The FDIC has issued a FIL which contains a Guidance and an informational supplement that discusses the risks associated with spyware from both a bank and consumer perspective and provides recommendations to mitigate these risks.
FIL;
Supplement.  7/25/05

Assets Reports Released

The FRB has released the 3.12 U.S. Reserve Assets and 3.13 Foreign Official Assets Held at Federal Reserve Banks reports for May 2005. Reports   7/25/05

Financial Management Seminars Announced

OTS has announced that three Outreach and Financial Management Seminars will be held later this year in Cleveland, Providence and Newark. Invitation; Registration Form   7/25/05

Hussein's Nephews Added To SDN List

OFAC has announced that six individuals, all nephews of Saddam Hussein, have been added to the SDN List with the designation of IRAQ2. Information regarding the additions has been posted on the BOL OFAC page.  7/22/05

Order Of Prohibition Issued Against Former Bank Employee

The FRB has announced the issuance of an Order of Prohibition against a former employee of Fifth Third Bank in Grand Rapids, Michigan, based on her alleged participation in violations of law and breaches of fiduciary duty in connection with embezzlement of funds at the bank, as well as similar violations and breaches at other banks. Order   7/22/05

FOMC Minutes Released

The FRB and the FOMC have released the minutes of the FOMC meeting held on June 29-30, 2005. Minutes  7/22/05

New Electronic Interpretations And Actions Announced

The OCC has announced the posting online of the June 2005 edition of New Electronic Interpretations and Actions. New  7/22/05

Bank Find Research Tool

FDIC Bank Find makes finding information about a FDIC insured institution easy. A researcher can obtain the answers to questions such as: Is My Bank Insured?; Where are My Bank's Branches Located?; Where is My Bank's Home (Main) Office Located?; What is My Bank's Web Site Address?; What Happened to My Bank (Historical List of Events)?; Does My Bank have a New Name?; and Is My Bank Still Open?. Bank Find  7/22/05

14(a) FACT Sheet Update
The FDIC has updated the 314(a) Fact Sheet by adding data collected as of July 19, 2005. 314(a) Fact Sheet  7/22/05

Counterfeit Cashier's Checks Alert

The OCC has issued an Alert regarding counterfeit cashier's checks bearing the name of Rockport National Bank, Rockport, Massachusetts. Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.  7/21/05

Greenspan Reports To Congress

Chairman Greenspan presented the FRB's semi-annual report to Congress and noted despite the challenges that face the U.S. economy, it has remained on a firm footing, inflation continues to be well contained, and the prospects are favorable for a continuation of those trends. Testimony; Full Report   7/21/05

OCC Releases CRA Ratings

The OCC has released the ratings received by nineteen national banks that were examined for compliance with CRA that became public during the period of June 15, 2004 through July 14, 2005. CRA Ratings  7/21/05

Enforcement Actions Announced

The FDIC has announced nineteen administrative enforcement actions taken against banks and individuals in May, 2005. Enforcement Actions  7/21/05

Military "Active Duty" Alerts

The FTC has issued a Consumer Alert which describes how military personnel can place an "active duty" alert on a credit report that requires creditors to take extra steps to verify a person's identity before granting credit in their name. Consumer Alert   7/21/05

OFAC Announces Changes To SDN List

OFAC has deleted six entries and modified others on the SDN List. Information regarding the changes has been posted on the BOL OFAC page.  7/20/05

Final CRA Rules Approved

The federal banking agencies have approved final CRA rules that are essentially as the agencies proposed them in March 2005. The final rules are intended to reduce regulatory burden on community banks while making CRA evaluations more effective in encouraging banks to meet community development needs. Final Rules; FRB PR; OCC NR; FDIC PR  7/20/05

Insurance For Stored Value Cards Proposed

The FDIC has proposed a new rule on the insurability of funds subject to transfer or withdrawal through the use of stored value cards and other nontraditional access devices, such as computers. Under the new proposed rule, these funds would be insurable "deposits" provided the funds have been placed at an insured depository institution. Proposed Rule  7/20/05

FDIC Amends Annual Audit Reporting Requirements

The FDIC has approved a proposed amendment to the FDIC's annual audit and reporting requirements that raises the asset-size threshold from $500 million to $1 billion for internal control assessments by management and attestations by external auditors and members of the audit committee. Amendment  7/20/05

Fictitious OCC Emails

The OCC has issued an Alert regarding fictitious e-mails that are circulating world-wide and claim to be authored by the OCC. They fraudulently encourage recipients to reply to receive funds owed by the OCC and other agencies. Emails  7/20/05

FTC Settles With Fraudulent Debt Negotiators

A group of defendants promising negotiation services that would "drastically" reduce consumers' debts have settled FTC charges that their deceptive claims violated federal law and harmed consumers who engaged the defendants' services and stopped contacting creditors. The defendants are barred from advertising or participating in any debt negotiation business in the future. Settlement  7/20/05

International Reserve Position Update

Treasury has updated the U.S. International Reserve Position report to include data as of July 15, 2005.
International Reserve Position  7/20/05

Agencies Schedule BSA/AML Programs

The Federal banking and thrift agencies along with FinCEN have announced the scheduling of three conference calls and five regional meetings regarding the newly released BSA/AML Examination Manual. The text will be discussed, examination expectations will be provided along with the opportunity to provide feedback, ask questions, and address implementation issues. Conference Call Instructions; Meeting Fact Sheet; FRB NR; OCC NR;
FDIC NR; OTS PR; FinCEN NR  7/19/05

August HOEPA Rates Posted

The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in August 2005 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, you use the yield in effect on the 15th of the month that precedes the month you received the application. H.15  7/19/05

Pharming Guidance Issued

The FDIC has issued a FIL announcing a guidance which describes the practice of "pharming," how it occurs, and potential preventive approaches. "Pharming" is the process of redirecting Internet domain name requests to false Web sites to collect personal information. Information collected from these sites may be used to commit fraud and identity theft. FIL; Guidance  7/19/05

FedLine Advantage Final Step Announced

FRB Financial Services has announced the final step that will be taken by the Federal Reserve Banks to implement FedLine Advantage. Final Step  7/19/05

May TIC Report Issued

The TIC data for May 2005 has been released and posted on the Treasury web site. TIC  7/19/05

OCC Announces Enforcement Actions

The OCC has announced twenty-five Enforcement Actions and one Termination. Enforcement Actions  7/18/05

June Call Report Filing Information Available

Filing information for the June 15, 2005 Call Report is available online. Filing Information  7/18/05

FinCEN Administrative Rulings Released

Five Administrative Ruling issued by FinCEN on the following topics have been released: Currency Transaction Reporting: Aggregation by Casinos at Slot Machines; Difficulties Encountered by Money Services Businesses in Obtaining Banking Services; Ceasing to be a Money Services Business; "Doing Business" as a Money Services Business; and Casinos as Money Services Businesses. CTR; Difficulties; Ceasing; Doing Business; Casinos  7/18/05

OTS Cost Of Funds Reports Issued

The OTS has issued the National Average Cost of Funds Ratio to OTS Regulated, SAIF - Insured Institutions historical and current reports. Historical Current  7/18/05

CUs Look To Ways To Protect Tax Exemption

In a presentation before the NAFCU Annual Conference in Las Vegas, NCUA Board Member Matz suggested ways CUs can protect their tax exemption and invest in their communities. Tax Exemption  7/18/05

Industrial Production Report Released

The FRB has released the G.17 Industrial Production and Capacity Utilization report for June 2005. G.17  7/18/05

FHC List Updated

The list of BHCs that have elected as of July 15, 2005, to be treated as FHCs has been published by the FRB. FHC List  7/18/05

FedFlash July 2005 Issue Published

The July 15, 2005 edition of FedFlash has been published and features article on cash intrastructure changes, FedACH Mexico Services, Operating Circular 12 and how to subscribe to FedLine Advantage. FedFlash  7/18/05

Proposal to change the Federal Credit Union (FCU) Bylaws

NCUA proposes to change, clarify and simplify the federal credit union by laws because of the numerous amendments approved in the last five years that have become obsolete. 70FR13312 (txt) 70FR12212 (pdf)  7/15/05

Two Special Alerts Issued Regarding Counterfeit Checks

The FDIC has issued two Special Alerts regarding counterfeit official checks drawn on City National Bank, Beverly Hills, California, and counterfeit cashier's checks drawn on Peoples Bank & Trust Company of Hazard, Hazard, Kentucky. Information concerning the counterfeits checks has been posted on the BOL Alerts & Counterfeits page.  7/15/05

Unauthorized Banking Special Alert

A Special Alert has been issued by the FDIC regarding an entity, Maritime Financial & Security Co., of Toronto, Ontario, Canada, that may be conducting banking activities without authorization in Canada and the United States. Special Alert page.  7/15/05

Organization Supporting al Qaida Added To OFAC List

Treasury has designated a U.K.-based Saudi oppositionist organization which provides material support to al Qaida as a SDGT and added it to the SND List. Information regarding the organization has been posted on the BOL OFAC page page.  7/15/05

FRB Announces Written Agreement With Montana Bank

The FRB has announced the execution of a Written Agreement by and among the First Citizens Bank of Butte, Butte, Montana; the Montana Division of Banking and Financial Institutions; and the Federal Reserve Bank of Minneapolis. Written Agreement page.  7/15/05

New York CU Closed

NCUA and the New York State Banking Department have announced that NCUA has accepted appointment as receiver/liquidator of Jamaica Postal Credit Union, located in Queens, New York, following the New York State Banking Department's decision to close the credit union. Closing page.  7/15/05

FEDS Working Paper Published

A Working Paper in the FEDS series entitled "Using Federal Funds Futures Contracts for Monetary Policy Analysis" has been published by the FRB. Abstract; Full Paper page.  7/15/05

Acting Comptroller Williams Comments On Issues

In a presentation before a meeting of the New York Bankers Association in Washington, D.C., Acting OCC Comptroller Williams discussed the history and characteristics of national banks and the bank supervisory process in light of current issues facing the industy. Speech page.  7/15/05

The FDIC has issued a FIL

The FIL announces the issuance of the regulator's quarterly Letter to Stakeholders containing reports on the FDIC's priorities and activities for the second quarter of 2005. FIL; Letter page.  7/15/05

Hurricane Relief FIL Issued

The FDIC has issued a FIL which announces a series of supervisory practices intended to facilitate the rebuilding process in areas damaged by Hurricane Dennis and severe storms. FIL; Supervisory Practices  7/14/05

Fraudulent Check Special Alert

The FDIC has issued a Special Alert regarding fraudulent checks issued via Qchex.com, an online service that enables users to print checks or send checks by e-mail to recipients who could then print them. Information concerning the fraudulent checks has been posted on the BOL Alerts & Counterfeits page.  7/13/05

International Reserve Position Update

Treasury has updated the U.S. International Reserve Position report to include data as of July 8, 2005. International Reserve Position  7/13/05

July 2005 FedFocus Published

Issue 3 of Volume 3 of FedFocus has been published by FR Financial Services and contains articles on the following topics: new account statement enhancements, solutions for web-based access, changes in the cash infrastructure analysis, full service solutions, and a Check 21 case study.
July FedFocus  7/13/05

Four Counterfeit Checks Special Alerts Issued

The FDIC has issued four Special Alerts regarding counterfeit cashier's checks drawn on Pacific Continental Bank, Eugene, Oregon; counterfeit trust checks drawn on Fiserv Trust Company, Denver, Colorado; counterfeit treasurer's checks drawn on Cambridge Savings Bank, Cambridge, Massachusetts; and counterfeit official checks drawn on Rhinebeck Savings Bank, Rhinebeck, New York. Information regarding the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.  7/12/05

ACH Availability Time To Improve

The Federal Reserve Banks and Banco de Mexico have announced that beginning July 25, 2005, the funds availability for ACH transactions will be reduced from two days to one day. ACH Availability  7/12/05

Banks Encouraged To Work With Hurricane Victims

The OCC has issued a statement encouraging national banks to assist victims of Hurricane Dennis by extending the terms of loan repayments; restructuring a borrower's debt obligations; and, easing credit terms for new loans to certain borrowers, consistent with prudent banking practice. Statement  7/12/05

Bank Closings Authorized

The Acting Comptroller Williams has issued a Proclamation that allows national bank offices affected by Hurricane Dennis to close. Proclamation   7/11/05

FinCEN Assesses $700,000 CMP

A CMP in the amount of $700,000 has been assessed by FinCEN against Gulf Corporation for willful violations of BSA involving the failure to timely file 2,434 CTRs and 47 SARs. CMP  7/11/05

May Consumer Credit Report Released

The FRB has released the G.19 Consumer Credit Report for May 2005. G.19  7/11/05

Host State Loans-To-Deposits Ratios Issued

The Federal banking regulators have issued the host state loan-to-deposit ratios that the agencies will use to determine compliance with section 109 of Riegle-Neal.
Ratios;
FRB PR;
FDIC PR;
OCC NR 7/8/05

CRA Rating Released

OTS has released the ratings for savings associations examined for CRA compliance that became publicly available in June 2005.
CRA Ratings 7/8/05

Banks Assessed CMPs

The FRB has assessed CMPs against Security Bank, Ralls, Texas, and Frontier Bank, Everett, Washington, for violations of Reg H and the National Flood Insurance Act.
Security Bank
Frontier Bank 7/7/05

OTS Releases Third Quarter 2005 CRA Exam Schedule

OTS has announced that thirty-six savings associations will be examined during the Third Quarter 2005 for compliance with CRA.
Exam Schedule 7/7/05

International Reserve Position Update

Treasury has updated the U.S. International Reserve Position Report to include data as of July 1, 2005.
Reserve Position 7/7/05

Treasury Checks Scams Identified

Two counterfeit scams have been identified by Treasury involving Treasury Checks. Information regarding the scams and the counterfeit checks has been posted on the BOL Alerts & Counterfeits page. 7/6/05

OFAC Issues $17,831 CMP

OFAC has released its Enforcement Information for July 2005 and assessed one bank a CMP of $17,831 for a funds transfer violation under the Iran Sanctions Program.
CMP 7/6/05

FDIC Releases CRA Ratings

The list of banks examined for CRA compliance and assigned evaluation ratings in April 2005 has been released by the FDIC.
CRA Ratings 7/6/05

FDIC Revises "Purposes And Functions"

A revised edition of "Purposes And Functions" has been published by the FDIC. The volume contains seven chapters on various topics including an overview of the Federal Reserve System; monetary policy and the economy; and supervision and regulation.
Purposes And Functions 7/6/05

Payroll Cards Subject Of Insights Paper

The OCC has issued a Community Development Insights Paper entitled "Payroll Cards: An Innovative Product for Reaching the Unbanked and Underbanked" which examines the growth of payroll cards and their potential to attract the nearly 10 million unbanked households into the financial mainstream.
Payroll Cards 7/6/05

Five Counterfeit Cashier's Checks Special Alerts Issued

The FDIC has issued five Special Alerts regarding counterfeit cashier's checks drawn on Ebank, Atlanta, Georgia; Commercial Bank of Texas, National Association, Nacogdoches, Texas; Presidential Bank, FSB, Bethesda, Maryland; Parish National Bank, Covington, Louisiana; and First Federal Savings Bank of Twin Falls, Twin Falls, Idaho. Information regarding the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page. 7/5/05

Special Alert Regarding Unauthorized Banking

A Special Alert has been issued by the FDIC regarding unauthorized banking activities that may be conducted in the U.S. and/or Canada by three entities representing themselves as financial institutions.
Special Alert 7/5/05

Supervision Of Weakened Banks Study Released

The FRB has released a paper which describes and compares the state insurance and banking supervisory frameworks for identifying and supervising companies in weakened financial condition.
Study 7/5/05

Web-Site Spoofing Response Guidance Issued

The OCC has issued a Bulletin which contains guidance on how a bank should respond to incidents of Web-site spoofing including recommended procedures to mitigate the risks and identification of the types of information that can be provided to law enforcement authorities.
Bulletin 7/5/05

FDIC Announced New Online Business Applications

The FDIC has announced that online business applications for consent to exercise trust powers, applications for a brokered deposit waiver, and applications pursuant to prompt corrective actions are now available through FDICconnect.
Applications 7/5/05

314a Facts And Figures Updated

FinCEN has updated the 314a Facts and Figures Report to include data as of July 5, 2005.
314a 7/5/05

March 2005 Quarterly Journal Online

The OCC has posted online the March 2005 issue of the Quarterly Journal which contains organizational charts, 4thQ 2004 condition of banks, household debt study, special supervision and enforcement, licensing decisions, appeals, speeches, interpretations, and corporate structure data.
Quarterly Journal 7/5/05

June Foreign Exchange Rate Report Issued

The FRB has issued the G.5 Foreign Exchange Rate Report for June 2005.
G.5 7/1/05

BSA/AML Examination Manual Published

The manual was published by Federal financial regulatory agencies on June 30, 2005, along with the announcement of plans for a series of nationwide conference calls, regional outreach meetings and a simulcast to brief bankers and examiners. For more information read the BOL Special Briefing.
FinCEN PR 7/1/05

Syrian SDNs Added To OFAC List

OFAC has announced the addition of two individuals to the SDN List who have directed the Syrian Arab Republic Government's (SARG) military and security presence in Lebanon and/or contributed to the SARG's support for terrorism. Information regarding the additions has been posted on the BOL OFAC page. 7/1/05

HMDA Data Collection Procedure Changes

The FFIEC has announced that effective January 1, 2006, for 2005 HMDA data collection, a complete resubmission is required for all changes to the loan application register following an institution's initial HMDA submission.
HMDA Changes 7/1/05

Paperless Legal Transfer Program To Updated

The Securities Transfer Association and DTC have announced five updates to the Paperless Legal Transfer Program which will be effective July 5, 2005.
Updates;
Paperless Legal Program 7/1/05

G.20 Finance Companies Report Released

The FRB has released the April 2005 G.20 Finance Companies Owned and Managed Receivable Outstanding and Auto Loans: Terms of Credit Report.
G.20 7/1/05

Fed Funds Rate Raised

The FOMC has announced that the target for the federal funds rate has been raised by 25 basis points to 3-1/4 percent.
Rate 7/1/05