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Top Story Compliance Related


CFPB statement on Reg Z disclosures during pandemic

The CFPB has issued a statement to help consumers receive relief during the pandemic more quickly from their credit card issuer. Regulation Z requires that creditors provide written disclosures to consumers for account-opening and temporary rate or fee reduction. During the pandemic, consumers may seek to open a new account or request a temporary reduction in APR or fees for an existing account or a low-rate balance transfer. The Bureau is providing temporary and targeted flexibility for credit card issuers regarding electronic provision of certain disclosures normally required to be in writing during this pandemic.

Specifically, the Bureau's statement pertains to oral telephone interactions where a card issuer may seek to open a new credit card account for a consumer, to provide certain temporary reductions in APRs or fees applicable to an existing account, or to offer a low-rate balance transfer. In these instances, the Bureau does not intend to cite a violation in an examination or bring an enforcement action against an issuer that during a phone call does not obtain a consumer’s E-Sign demonstrative consent to electronic provision of the written disclosures required by Regulation Z, so long as the issuer during the phone call obtains both the consumer’s oral consent to electronic delivery of the written disclosures and oral affirmation of his or her ability to access and review the electronic written disclosures.

The Bureau has also issued FAQs focusing on existing regulatory flexibilities for open-end credit (that is not home-secured) that may be useful for assisting customers.


Get ready for the 2020 Summary of Deposits survey

The FDIC has issued FIL-59-2020 announcing its annual survey of branch office deposits as of June 30, 2020. All FDIC-insured institutions, including insured U.S. branches of foreign banks, other than institutions with no branch offices, are required to complete and submit the survey by July 31, and no filing extensions will be granted.


Electronic filing of CMIR now allowed

FinCEN has posted a link to an electronic filing version of the Currency and Monetary Instrument Report (CMIR). FinCEN and U.S. Customs and Border Protection developed the electronic filing version, which is available via FinCEN's Filing Information webpage (together with FinCEN's fillable PDF version) or directly on the Department of Homeland Security website.

The CMIR is used by persons entering or exiting the United States, and physically transporting $10,000 or more in currency or other monetary instruments at one time. It's also used by each person who receives currency or other monetary instruments in the United States which have been transported, mailed, or shipped from any place outside the United States and each person who transports, mails or ships currency or other monetary instruments from within the U.S. to locations outside the U.S.

The paper version remains available for use, especially by travelers transporting currency or monetary instruments.


FDIC updates exam-related manuals

The FDIC has posted its May 2020 updates to the agency's Consumer Compliance Examination Manual, with changes to the following sections:

  • II-14.1 - SOURCE Violation Codes were modernized and streamlined
  • III-2.1 - Bank of Anytown (ZIP file of Word Documents). Updated to conform to the new SOURCE Violation Codes and remove the CRA Performance Evaluation example
  • XII - All CRA Performance Evaluation templates were updated to conform to updated writing procedures

The FDIC also updated its Risk Management Manual of Examination Policies as of June 1, 2020, with changes to Section 21.1 (Emergency Planning), including additions to the Examination Profile Script to promote the availability of options for off-site loan review and examiner connectivity, and to address modifications related to the COVID-19 pandemic.


OCC CRA evaluation ratings

Yesterday the OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public in May. Of the 17 evaluations listed, 14 were rated Satisfactory and the following three were rated Outstanding as Intermediate Small banks (links are to evaluation reports):


OFAC targets companies in Venezuela oil trade

On Tuesday, the Treasury Department reported that OFAC designated four companies and four crude oil tankers for operating in the oil sector of the Venezuelan economy.

As a result of Tuesday’s action, all property and interests in property of these entities that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by the designated entities are also blocked. For identity information on the designated entities and vessels, see BankersOnline's OFAC Update.


FDIC issues July–December CRA exam schedule

The FDIC has issued its lists of institutions scheduled for a Community Reinvestment Act (CRA) examination during the third and fourth quarter 2020.

CRA examinations are scheduled based on an institution's asset size and CRA rating. Without reasonable cause, an institution with $250 million or less in assets and a CRA rating of Satisfactory can be subject to a CRA examination no more frequently than once every 48 months, and an institution with $250 million or less in assets and a CRA rating of Outstanding can be subject to a CRA examination no more frequently than once every 60 months.


Aggregate consolidated liabilities report released

The Federal Reserve has released its annual determination of the aggregate consolidated liabilities of financial companies as required by the Dodd-Frank Act. The act prohibits a financial company from combining with another company if the resulting company's liabilities would exceed 10 percent of the aggregate consolidated liabilities of all financial companies. Effective July 1, 2020, aggregate consolidated liabilities equal $21,229,884,414,000. This number, which is the average of the year-end financial sector liabilities of the preceding two years, will be the measure of aggregate consolidated liabilities from July 1, 2020 through June 30, 2021.


OCC enforcement actions

The OCC has released enforcement orders issued by the agency in April.

  • Mission National Bank, San Francisco, California, consented to the issuance of a Cease and Desist Order following findings by the OCC that the bank engaged in unsafe or unsound practices and violations of law, rule, or regulation relating to the bank's failure to establish and maintain an acceptable Bank Secrecy Act/Anti-Money Laundering compliance program.
  • A former vice president for human resources and chief operations officer for First National Bank, Bagley, Minnesota, consented to the issuance of an order of prohibition and for the payment of a civil money penalty of $15,000, following an OCC finding that she misappropriated $72,700 in bank funds by causing the bank to pay her annual bonuses greater than those approved by the bank due to her unilateral control of the bank's payroll process.
  • a former teller at PNC Bank, N.A., Wilmington, Delaware, was issued a Prohibition Order after failing to appear for a hearing on charges that he had misappropriated bank funds from his teller drawer and an ATM under his sole control, resulting in a bank loss of nearly $12,000.


NCUA BSA webinar

The NCUA has announced its “Bank Secrecy Act: Review and Reminders” webinar is scheduled for June 17, 2020. The webinar will provide credit unions information on best practices in Bank Secrecy Act programs and avoiding pitfalls from non-compliance. The 90-minute presentation is scheduled to begin at 3 p.m. Eastern. Online registration is available.


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