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How to add predictive analytics into your risk program. Risk reports are often limited to historical insights and issues and do not provide guidance and insights into the future of the organization. Adding predictive analytics can allow your organization to detect emerging risks and create mitigation plans. This can be achieved by combining internal and external key risk indicators (KRIs) and key performance indicators (KPIs) with regulatory intelligence. This ensures that risk reports can detect more issues and highlight areas of concern. Click here to learn more.

Top Story Compliance Related


FTC asking if Negative Option Rule needs update

The Federal Trade Commission has published an advance notice of proposed rulemaking [84 FR 52393] seeking comment on the need for amendments to the Commission's “Rule Concerning the Use of Prenotification Negative Option Plans” (also known as the “Negative Option Rule”), 16 CFR part 425, to help consumers avoid recurring payments for products and services they did not intend to order and to allow them to cancel such payments without unwarranted obstacles. Comments will be accepted by December 2, 2019.


Former Regions Bank employee banned from banking

The Federal Reserve Board has announced it has issued a consent order of prohibition against Timothy McMillian, former employee of Regions Bank, Birmingham, Alabama, for using confidential customer account information for personal gain.

The order states that while he was employed as a Financial Relationship Counselor at Regions Bank, "McMillian accessed the Bank’s customer account profiles of at least four Regions customers, without authorization, and obtained confidential Regions customer account information, which he provided to co-conspirators, who impersonated the affected customers and unlawfully withdrew funds from their accounts," causing Regions Bank to suffer a financial loss.


GE settles potential OFAC civil liability

OFAC has announced a $2,718,581 settlement with The General Electric Company (“GE”) of Boston, Massachusetts. GE, on behalf of three GE subsidiaries -- Getsco Technical Services Inc., Bentley Nevada, and GE Betz -- has agreed to settle its potential civil liability for 289 alleged violations of the Cuban Assets Control Regulations.

Between December 2010 and February 2014, the GE Companies appear to have accepted payment from The Cobalt Refinery Company, an entity identified on the List of Specially Designated Nationals and Blocked Persons since June 1995, for goods and services provided to a Canadian customer of GE. OFAC determined that GE voluntarily disclosed the apparent violations, and that the apparent violations constitute a non-egregious case. Additional details.


IRS relief for farmers and ranchers

The IRS has announced that farmers and ranchers who were forced to sell livestock due to drought may have an additional year to replace the livestock and defer tax on any gains from the forced sales. The farmer or rancher must be in an applicable region (a county designated as eligible for federal assistance plus counties contiguous to that county). The relief generally applies to capital gains realized by eligible farmers and ranchers on sales of livestock held for draft, dairy or breeding purposes.


OCC updates Handbook booklets

OCC Bulletin 2019-44, issued yesterday, announces updates to the "Bank Supervision Process," "Community Bank Supervision," "Federal Branches and Agencies Supervision," and "Large Bank Supervision" booklets of the Comptroller’s Handbook.

The updated booklets reflect —

  • The interim final rule for the expanded supervisory cycle.
  • An updated OCC report of examination policy based on the revised Federal Financial Institutions Examination Council report of examination policy.
  • Information about the OCC’s authority to access banks’ books and records.
  • Revision of the OCC’s enforcement action policies.
  • The revised "Capital and Dividends" booklet of the Comptroller’s Handbook.
  • Updates to the OCC’s credit underwriting assessment.
  • Changes to references to include new issuances and to reflect rescissions of OCC issuances since June 28, 2018.


Venezuela-related General Licenses amended


NCUA issues rules for PALs II

The NCUA Board published [84 FR 51942] a final rule (referred to as the PALs II rule) to allow federal credit unions to offer additional payday alternative loans (PALs) to their members. The final rule does not replace the NCUA's current PALs rule (referred to as the PALs I rule). Rather, the PALs II rule grants FCUs additional flexibility to offer their members meaningful alternatives to traditional payday loans while maintaining many of the key structural safeguards of the PALs I rule. The PALs II rule will be effective December 2, 2019.


OFAC targets Russian financier for election meddling attempt

The Treasury Department announced yesterday that OFAC had taken action against Russian actors that attempted to influence the 2018 U.S. midterm elections, though there was no indication that foreign actors were able to compromise election infrastructure that would have prevented voting, changed vote counts, or disrupted the tallying of votes. Yesterday’s action also increases pressure on previously designated the Russian financier Yevgeniy Prigozhin by targeting his physical assets, including three aircraft and a yacht, as well as employees of the Internet Research Agency, which Prigozhin finances.

The action targets four entities, seven individuals, three aircraft, and a yacht that are all associated with the Internet Research Agency and Prigozhin. For identification information on the designees, see BankersOnline's OFAC Update.


FDIC August enforcement actions

The FDIC has released a list of administrative enforcement actions taken against banks and individuals in August (and one issued in July).

  • A Burnet, Texas, bank was ordered to pay $21,700 for a pattern or practice of flood insurance-related violations
  • A former chief financial officer of The Bank of Oswego, Lake Oswego, Oregon, was issued an adjudicated order to pay a civil money penalty of $175,000 and an order of prohibition for having approved the use of $675,000 in bank funds to pay for a customer's wire transfer and facilitating a $1.7 million loan to cover the transfer, aiding an abetting an improper straw buyer transaction involving bank-foreclosed property and failing to protect the bank's collateral position ion that property, following repeated appeals and delays caused by the former banker
  • The former president and CEO of AztecAmerica Bank, Berwyn, Illinois, consented to an order to cease and desist and and order to pay a civil money penalty of $25,000, for causing the bank to inject money into its holding company by approving payments by the bank to two of its employees for the purpose of enabling them to purchase stock in the holding company, resulting in a loss to the bank.
  • The former chief financial officer of Crown Bank, Edina Minnesota, was issued an order to cease and desist and an order to pay a $10,000 civil money penalty for assisting the former CEO of the bank in conducting and obscuring transactions in violation of Regulation O, and failing to stop or report the CEO's theft of funds from a third party's bank deposit account.
  • The former president and cashier of Commercial Bank of Oak Grove, Oak Grove, Missouri, was issued an adjudicated order to cease and desist and to pay a $15,000 civil money penalty for altering account statements of the bank's correspondent account at another bank, overstating the balance in that account, resulting in losses exceeding $500,000.


NY landlord faces discrimination charges

HUD has announced it has charged a Hamburg, New York, landlord with violating the Fair Housing Act by refusing to rent to and making discriminatory statements about families with children. According to HUD’s charge, the owner of a mixed-use property, which contains two apartments, allegedly refused to rent a one-bedroom unit to an applicant because he has a son who would stay with him three times a week. HUD’s charge further alleged that the owner stated that he did not want any children living at the property, citing parking concerns.


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