Top Story Compliance Related

The NCUA will host a free webinar, “NCUA Examination Modernization,” on Wednesday, January 22, 2014, at 2 p.m. ET. The webinar is open to credit unions of all asset sizes.

FinCEN has distributed a news release announcing that it has fined JPMorgan Chase Bank, N.A., $461 million for willfully violating the Bank Secrecy Act (BSA) by failing to report suspicious transactions arising out of Bernard L. Madoff's decades-long, multi-billion dollar fraudulent investment scheme. "In consenting to the assessment of a civil money penalty, JPMorgan admitted to the facts set forth by FinCEN and that its conduct violated the Bank Secrecy Act," said the release. FinCEN said that the bank attempted to protect itself when it became suspicious of Madoff's fraud, but failed to file required Suspicious Activity Reports with FinCEN which might have "saved thousands of other fraud victims untold misery and loss." FinCEN's notice stated that the OCC will collect a $350 million payment under a Civil Money Penalty Order against JPMorgan Chase Bank, N.A., JPMorgan Bank and Trust Company, N.A., and Chase Bank USA, NA. The U.S. Attorney's Office for the Southern District of New York (SDNY) has approved a deferred prosecution agreement under which JPMorgan will forfeit $1.7 billion (which will be contributed to the recovery funds for Madoff victims). FinCEN agreed to consider its penalty satisfied by JPMorgan's payment to the SDNY. The combined payments agreed to by the JPMorgan banks total $2.05 billion.

• FinCEN CMP Order
• Press release by U.S. Attorney's Office for Southern District of New York
• Supporting documents for Deferred Prosecution Agreement
• OCC press release
• OCC CMP Order

The NCUA has announced the release of the Share Insurance Estimator, a new, improved insurance coverage estimator which replaces the NCUA E-Calculator.

An open meeting with the NMLS Ombudsman will be held on Tuesday, February 18, 2014, from 2:00 to 5:00 p.m. ET, prior to the NMLS Annual Conference in Miami, Florida. Conference registration is not required to attend the meeting. The meeting will be in-person only; there will be no dial-in available.

OFAC has announced the designation of a citizen of Afghanistan as a SDGT and the addition of his name to the SDN List. Information regarding the designation has been posted in a BOL OFAC Update.

FinCEN has distributed a news release announcing that it has fined JPMorgan Chase Bank, N.A., $461 million for willfully violating the Bank Secrecy Act (BSA) by failing to report suspicious transactions arising out of Bernard L. Madoff's decades-long, multi-billion dollar fraudulent investment scheme. "In consenting to the assessment of a civil money penalty, JPMorgan admitted to the facts set forth by FinCEN and that its conduct violated the Bank Secrecy Act," said the release. FinCEN said that the bank attempted to protect itself when it became suspicious of Madoff's fraud, but failed to file required Suspicious Activity Reports with FinCEN which might have "saved thousands of other fraud victims untold misery and loss." FinCEN's notice stated that the OCC will collect a $350 million payment under a Civil Money Penalty Order against JPMorgan Chase Bank, N.A., JPMorgan Bank and Trust Company, N.A., and Chase Bank USA, NA. The U.S. Attorney's Office for the Southern District of New York (SDNY) has approved a deferred prosecution agreement under which JPMorgan will forfeit $1.7 billion (which will be contributed to the recovery funds for Madoff victims). FinCEN agreed to consider its penalty satisfied by JPMorgan's payment to the SDNY. The combined payments agreed to by the JPMorgan banks total $2.05 billion.

• FinCEN CMP Order
• Press release by U.S. Attorney's Office for Southern District of New York
• Supporting documents for Deferred Prosecution Agreement
• OCC press release
• OCC CMP Order

The NCUA has announced the release of the Share Insurance Estimator, a new, improved insurance coverage estimator which replaces the NCUA E-Calculator.

An open meeting with the NMLS Ombudsman will be held on Tuesday, February 18, 2014, from 2:00 to 5:00 p.m. ET, prior to the NMLS Annual Conference in Miami, Florida. Conference registration is not required to attend the meeting. The meeting will be in-person only; there will be no dial-in available.

OFAC has announced the designation of a citizen of Afghanistan as a SDGT and the addition of his name to the SDN List. Information regarding the designation has been posted in a BOL OFAC Update.

• Latest FDIC Consumer News Offers Tips for Safe Shopping Over the Internet

  The latest edition of FDIC Consumer News offers practical guidance on how to become a smarter, safer user of financial services. 8/31/01

• FDIC Makes Public July Enforcement Actions; No Administrative Hearings Scheduled

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in July. No administrative hearings are scheduled for September. FDIC:PR-58-2001 8/31/01

• OCC Summary of Community Development Investments Underscores the Impact of Local Partnership Efforts

  The OCC released a directory summarizing all Part 24 national bank investments made during 2000. Part 24 investments are
  investments that support community development, that are made pursuant to Part 24 of the OCC's regulations. OCC:NR 2001-73 8/31/01

• FRB Issues Final Rule to Decrease the Basic Discount Rate

  The FRB has amended its Regulation A, Extensions of Credit by Federal Reserve Banks to reflect its approval
  of a decrease in the basic discount rate at each Federal Reserve Bank. The Board acted on requests submitted by the Boards of Directors of the twelve Federal Reserve Banks. 66FR45752 (text) 66FR45752 (pdf) 8/30/01

• Donald E. Powell Sworn in as 18th FDIC Chairman

  "I've spent my entire professional career as a banker and look forward to working with the dedicated and
  trusted people of the FDIC," said Chairman Powell. "This is an exciting time in the banking industry, and I
  am honored to be able to have a hand in shaping the issues that lie ahead." FDIC:PR-57-2001 8/30/01

• FDIC Distributes the FFIEC CD-ROM on Financial Privacy and Information

  The CD-ROM, developed by the FFIEC, contains reference and training materials on consumer financial privacy. The CD-ROM may be used to help your staff:

  • understand the Gramm-Leach-Bliley Act privacy provisions,
  • implement effective policies and practices to maintain compliance with the new privacy rule, and
  • protect the security and confidentiality of customer information.
    FDIC:FIL-73-2001 8/29/01

• FDIC Distributes FinCEN SAR Bulletin

  The SAR Bulletin, published by FinCEN is part of a series of overviews of trends and patterns in money laundering derived from the Suspicious Activity Report (SAR) database that can help financial institutions prevent and detect financial crime. FDIC:FIL-72-2001 8/29/01

• FDIC Publishes OSFI Monthly Warning Advisory

  The Office of the Superintendent of Financial Institutions of Canada has published a "Monthly Warning Advisory", which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-71-2001 8/29/01

• FDIC Seeks Comment on Study of Banking Regulations Regarding the Online Delivery of Banking Services

  As previously reported in the Federal Register, the FDIC has issued "Request for Comment on Study of Banking Regulations Regarding the Online Delivery of Banking Services." Section 729 of the Gramm-Leach-Bliley Act requires the FDIC to review its regulations regarding the delivery of financial services and report recommendations to Congress for adapting existing requirements to online banking and lending. FDIC:FIL-70-2001 8/29/01

• FDIC Web Page Allows Users to Search for Unclaimed Funds from Failed Banks

  The FDIC may be holding unclaimed funds in one of two ways: either as unclaimed insured deposits or as undeliverable dividend checks. The new Web page provides depositors of failed institutions who did not claim their funds previously, or whose dividend checks were returned to the FDIC as undeliverable, an opportunity to claim their funds. FDIC:PR-56-2001 8/28/01

• OTS Announces 46 CRA Exams Scheduled for 4th Quarter 2001

  The OTS announced that 46 savings associations are scheduled for Community Reinvestment Act (CRA) examinations during the fourth quarter of 2001. OTS 01-56 8/28/01

• As Growth Trust Activities Increases, OTS Focuses on Risk-Based Exams

  The OTS has released its updated Trust and Asset Management Handbook, designed to assist OTS examiners in planning and conducting examinations of trust and asset management products and services provided by savings associations. OTS 01-54 8/28/01

• OCC Offers Bank Directors Seminar

  This one-day workshop will allow directors to interact with senior OCC staff experienced in the risk assessment process through a
  combination of lectures, discussions and exercises. Banker Education 8/27/01

• FDIC Publishes FFIEC Guidance on Authenticating Identity of Online Customers

  This guidance focuses on the risk-management controls necessary to authenticate the identity of customers accessing electronic financial services. It also addresses the verification of new customers and the authentication of existing customers. The guidance applies to both retail and commercial customers. FDIC:FIL-69-2001 8/27/01

• FDIC Issues InfoSec Exam Procedures

  The FDIC's examination procedures for customer information security are now available to help both examiners and financial institutions understand compliance expectations in this area. FDIC:FIL-68-2001 8/27/01

• FRB Publishes List of Foreign Margin Stocks

  The List of Foreign Margin Stocks is composed of certain foreign equity securities that qualify as margin securities
  under Regulation T. The Foreign List is published twice a year by the Board. 66FR44525 8/24/01

• OTS Publishes Thrift Industry Interest Rate Risk Measures Newsletter

  First Quarter 2001 Newsletter contains the most recent industry statistics for several measures of interest rate risk (IRR): the Post-Shock Net Portfolio Value (NPV) Ratio, the Interest Rate Sensitivity Measure, the Pre-Shock NPV Ratio, and the Change in NPV Ratio. 8/24/01

• FFIEC Financial Privacy InfoBase Available on Web

  It is now possible to access the FFIEC Financial Privacy InfoBase online. This interactive training resource allows you to customize your view of the information, looking at it in alphabetical order, by agency, by document type, or in chronological order. Download the Flash plug-in and hook up your speakers, because in addition to documents, there are multimedia presentations. 8/24/01

• OTS Distributes Financial Privacy Infobase CD-ROM

  This CD contains a variety of both print materials and audio-visual training segments on the Privacy of Consumer Financial Information (“the privacy rule”), section 305 of the Gramm-Leach-Bliley Act. OTS CEO Ltr 144 8/23/01

• OTS Announces July CRA Ratings

  The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in July 2001. OTS 01-55 8/23/01

• HUD Issues Final Rule to Govern payments on Ginnie Mae

  The rule requires that payments on Ginnie Mae MBS due to Depositories be made in immediately available funds and supersedes any current provisions allowing those payments to be made by check. Payments to other security holders may be made by check or other means provided the check is received by the security holder not later than the applicable payment date specified in the Ginnie Mae Mortgage-Backed Securities Guide. 66FR44257 (text) 66FR44257 (pdf) 8/22/01

• Regulators Respond to Insurance Consumer Protection Rules Questions

  Regulators responded to questions submitted by ABA and ABIA relating to the insurance consumer protection rules implementing section 305 of the Gramm-Leach-Bliley Act. Letter 8/22/01

• FRB Lowers Interest Rate

  The FOMC decided to lower its target for the federal funds rate by 25 basis points to 3-1/2 percent. In a related action, the Board of Governors approved a 25 basis point reduction in the discount rate to 3 percent. FRB Press Release FRB Press Release, FRB Press Release 8/22/01

• FDIC Appoints CEO and Selects Financial Advisor for Superior Federal, FSB, Hinsdale, Illinois

  The Board of Directors of the FDIC announced that John D. Broderick has been appointed president and chief executive officer of Superior Federal, FSB, Hinsdale, Illinois (New Superior). FDIC: PR-55-2001 8/21/01

• FRB to purchase office building in Washington, DC

  The FRB announced it has contracted to purchase from Mack-Cali Realty Corporation of Cranford, N.J., an eight-story, 173,390 square-foot* office building located at 1709 New York Avenue, N.W., Washington, D.C., for $67 million. FRB Press Release 8/21/01

• OCC Releases CRA Evaluations For 20 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of July 15 through August 14. OCC:NR 2001-71 8/17/01

• Gale Cincotta a "National Treasure," Says Comptroller Hawke

  Comptroller of the Currency John D. Hawke, Jr. issued a statement regarding community activist Gale Cincotta, who passed away on August 15. OCC:NR 2001-72 8/17/01

• FRB Final Rule on Subs Published in Federal Register

  The final rule of the Federal Reserve Board implementing the financial subsidiary provisions of the Gramm-Leach-Bliley Act for state member banks has now been published in the Federal Register. GLBA authorizes state member banks that comply with the requirements of the rule to control, or hold an
  interest in, a financial subsidiary which may conduct certain financial activities that are not permissible for the parent bank to conduct directly. The final rule is substantially similar to the interim rule that the Board adopted in March 2000. The effective date of the final rule is September 17, 2001. 66 FR 42929 [text] 66 FR 42929 [PDF] 8/16/01

• NCUA Mid-year Statistics - Assets, deposits and investments surge at midyear 2001

  Expanding rapidly, federally insured credit union assets grew 8.9 percent, while savings grew nearly 10 percent and the amount of money placed in investments grew 11.4 percent in the first six months of 2001, according to midyear call report data. NCUA Press Release 8/16/01

• Dollar AIMs For Minimum 4% NCUA Staff Reduction As Agency Begins Work On 2002 Budget

  NCUA Acting Chairman Dennis Dollar told a group of agency department directors today that he will propose a minimum four percent (4%) NCUA staff reduction to be accomplished in the 2002 and 2003 budget cycles. NCUA Press Release 8/16/01

• OCC Distributes CRA: Income Level, Median Family Income

  OCC Distributes 1990 U.S. Census and 2001 Department of Housing and Urban Development (HUD) estimated median
  family incomes for metropolitan statistical areas (MSA) and non-MSA portions of each state. OCC 2001-40 8/16/01

• FRB Publishes FFIEC Guidance on Authentication

  The federal banking agencies recently issued guidance for examiners and banking organizations. The guidance addresses authentication in an electronic banking environment. FRB:SR 01-20 8/16/01

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on Atlantic Bank, New York, New York, are in circulation. The counterfeit items bear no resemblance to the legitimate checks. The address of 211 W. 53rd Street, New York, New York, does not match any Atlantic Bank branch location. FDIC:FIL-67-2001
  8/15/01

• OCC Announces New Enforcement Actions and Termination

  The OCC announced 6 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 1 termination of an existing enforcement action. OCC:NR 2001- 70 8/15/01

• FDIC Publishes FRB Notice on Lifting Mandatory Compliance Date for Interim Rules Amending Regulations B, E, M, Z, and DD

  As earlier reported in Federal Register, the FRB announced it had lifted the October 1, 2001, mandatory compliance date for interim rules governing the electronic delivery of certain consumer disclosures. FDIC:FIL-66-2001 8/14/01

• OCC Publishes Alert on Fraud Prevention Regarding the Issuance of Tax Relief Treasury Checks

  OCC:Alert 2001-7 8/14/01

• FRB adopts final rule implementing the financial subsidiary provisions of the GLB Act for state member banks

  The final rule is substantially similar to the interim rule that the Board adopted last year and issued for comment. The rule continues to allow qualifying state member banks to use a streamlined notice procedure to establish a financial subsidiary.
  FRB Press Release 8/14/01

• FRB Revises Reports of Examination of Community Banking Organizations

  Developments in technology, the expansion of financial services, and a risk-focused approach to examinations necessitate increased flexibility in structuring and organizing the content of reports of examination. The FRB has collaborated on the development of guidance on the format of reports of examination for community banking organizations. FRB:SR 01-19 8/14/01

• OCC Releases First Quarter Edition of Quarterly Journal

  The June 2001 issue of the Quarterly Journal, Vol. 20, No. 2 (for first quarter 2001), is now available on-line. 8/13/01

• FFIEC Guidance on Authenticating Identity of Online Customers

  The FFIEC has released a guidance document, "Authentication in an Electronic Banking Environment", to address the verification of new customers and the authentication of existing customers in electronic banking. It provides guidance on the risks and risk management controls which are necessary for proper identity authentication, and applies to both retail and commercial customers. FFIEC Press Release     Guidance Document 8/9/01

• Comptroller Highlights Opportunities in Ethnically-Diverse Market

  In the lead article of OCC’s summer 2001 community affairs newsletter, Comptroller of the Currency John D. Hawke, Jr. underscores the opportunities for national banks to meet the fast-growing needs of an ethnically-diverse financial services market. OCC 2001-69 8/9/01

• Federal Register Publication of E-Regs Delay

  The previously announced push back of the compliance deadline for the e-regs has now been made official with publication in the Federal Register. 66 FR 41439 [text] 66 FR 41439 [PDF] 8/8/01

• OCC Integrates Canary Early Warning Process into Community Bank Supervision Booklet

  The Office of the Comptroller has revised its 1998 "Community Bank Supervision" booklet in the
  Comptroller's Handbook, to integrate the Canary early warning process (a risk level assessment) into community bank supervision and makes the assessment of a community bank's information technology part
  of its safety and soundness examination. Community Bank Supervision Booklet 8/7/01

• FRB Publishes Spanish Version of Complaint Brochure

  The Federal Reserve Board has published a Spanish version of its brochure for consumers, "How to File a Consumer Complaint About a Bank". The brochure covers the kinds of complaints the Federal Reserve System investigates and information needed from consumers in order to assist in an investigation. The brochure also provides information about major consumer protection laws and lists the other federal regulatory agencies and the types of financial institutions they supervise. FRB PR 8/7/01

• FDIC Issues August List of Banks Examined For CRA Compliance

  The Federal Deposit Insurance Corporation (FDIC) today issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in May 2001. 8/6/01

• FRB Lifts Compliance Deadline on E-regs

  The Federal Reserve has issued a press release announcing the lifting of the October 1, 2001 mandatory compliance date for interim rules governing the electronic delivery of certain consumer disclosures that amended Regs B, E, M, Z and DD.
  Based on the comments received, the Board is considering adjustments to the rules
  to provide additional flexibility. The Board is, therefore, lifting the
  October 1, 2001 compliance date for the interim rules. Once permanent
  final rules are issued, the Board expects to afford institutions a reasonable
  period of time to comply with those rules.
  FRB Notice 8/3/01

• Regulators Issue Advance Notice of Proposed Rulemaking Regarding CRA

  As earlier reported in the Federal Register, this advance notice of proposed rulemaking (ANPR) seeks public comment on a wide range of questions as part of the review. The regulators also welcome comments discussing other aspects of the CRA regulations and suggesting ways to improve the efficacy of the regulations. FDIC:FIL-65-2001 8/3/01

• OTS Issued Five Enforcement Orders In June

  The OTS reported that it issued five enforcement orders to three individuals and one institution during June. OTS 01-53 8/3/01

• FDIC & OCC Publish FFIEC CRA Q & A s

  As earlier reported in the Federal Register, the FFIEC sent out an update of "Interagency Questions and Answers
  Regarding Community Reinvestment", which is a comprehensive interpretation of the Community Reinvestment Act
  regulations. OCC 2001-39 FDIC:FIL-64-2001 8/3/01

• Statement of Ellen Broadman Before The Subcommittee On Capital Markets, Insurance And Government Sponsored Enterprises

  OCC discusses the Securities and Exchange Commission’s Interim Final Rules
  Testimony OCC:NR 2001- 68 8/3/01

• OTS Approves AIG Acquisition of American General Bank

  The OTS announced the approval of the application from American International Group, Inc. (AIG), New York, N.Y., the savings and loan holding company of AIG Federal Savings Bank (AIG Bank), Wilmington, Del., to acquire control of American General Corporation (American General), Houston, Texas, and American General Finance, Inc. (AGFI), a wholly-owned subsidiary of American General
  and parent savings and loan holding company of American General Bank, FSB (American General Bank), Midvale, Utah, and to merge American General Bank into AIG Bank. OTS 01-52 8/2/01

• OCC Distributes New Form for National Bank Community Development Investments

  The new form provides a convenient method for national banks to self-certify or to request prior approval of a community development investment. OCC 2001-38 8/2/01

• OCC Releases the FFIEC Guidance "Authentication in an Electronic Banking Environment"

  This interagency guidance reviews the risks and risk management features of a number of existing and emerging authentication
  tools. These tools are necessary to initially verify the identity of new customers and to authenticate existing customers that access electronic banking services. OCC:AL 2001-8 8/1/01