Top Story Compliance Related

• Treasury Withdraws and Reproposes Bank Deposit Interest Regulations

  The Treasury Department withdrew January 2001 proposed regulations that would have required reporting to the IRS for bank deposit interest paid to all nonresident alien individuals and issued new proposed regulations that will require reporting on a more limited basis. Treasury PO-3301 Bank Deposit Interest Regulations 7/31/02

• OFAC Publishes Interpretative Ruling

  The Office of Foreign Assets Control has published an interpretative ruling on computerized reservation systems (Cuba travel). Interpretative Ruling 7/31/02

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

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in June. No administrative hearings are scheduled for August. FDIC:PR-87-2002 7/31/02

• FDIC Issues Amended Statement of Policy on Bank Merger Act Transactions

  The FDIC has amended its Statement of Policy on Bank Merger Transactions to incorporate a statutory change made by the USA PATRIOT Act. FDIC:FIL-82-2002, Notice 7/31/02

• Hispanic Banking Forum Encourages Banks to Reach Growing Hispanic Population in Chicago Region

  The OCC, FRB of Chicago and the FDIC will co-sponsor a Hispanic Banking Forum in Chicago, Illinois on July 31. OCC:NR 2002-62 7/31/02

• OCC Publishes Bulletin on Customer ID Proposal

  As earlier reported in the Federal Register, this bulletin transmits a notice of proposed rule making jointly published by the U.S. Treasury Department, through the Financial Crimes Enforcement Network (FinCEN), the federal banking agencies, and the National Credit Union Administration on July 23. OCC 2002-34 7/31/02

• Appeals Court Upholds Financial Privacy Regulations

  Trans Union May Not Sell Consumers' Personally Identifiable Financial Information without their Consent. The United States Court of Appeals for the District of Columbia Circuit has affirmed a lower court decision upholding regulations enacted by the Federal Trade Commission and six other federal agencies to implement the privacy provisions of the Gramm-Leach-Bliley Act (GLBA). FTC Press Release 7/30/02

• Written Agreement with Community First Bank and Trust

  The Federal Reserve Board announced the execution of a Written Agreement by and among the Community First Bank and Trust, Celina, Ohio, the Federal Reserve Bank of Cleveland, and the Ohio Division of Financial Institutions. FRB Press Release 7/30/02

• HUD Issues Proposed Rule to RESPA

  HUD is issuing a proposed rule under RESPA, to simplify and improve the process of obtaining home mortgages and reduce settlement costs for consumers. 67FR49133 7/29/02

• OCC is Revising the Expedited Review Procedures for National Banks to Effect Reverse Stock Splits

  This advisory letter updates existing guidance to reflect the repeal of 12 USC 51 on minimal capital requirements. OCC:AL 2002-6 7/29/02

• Regulators Issue Proposed Collection of Data on Subprime Consumer Lending Programs

  As earlier reported in the fderal register, the FDIC, FRB, and the OCC are requesting comment on the addition of a proposed new schedule to the Reports of Condition and Income (Call Report) that would collect data on consumer loans in subprime lending programs. FDIC:FIL-81-2002, FFIEC 7/29/02

• 2002 National Money Laundering Strategy Roll Out

  The release of the 2002 National Money Laundering Strategy into a world that changed dramatically as a result of the villainous terrorist attacks on September 11, 2001. The Strategy directs the government's resources against money launderers and those who finance terrorist activities and individuals. It is a good plan and a critical mission. Press Release 2002 Money Laundering Strategy 7/26/02

• Treasury Requests Comments on Suspicious Activity Report Money Services Businesses

  It is anticipated that the form will be final and available for use on October 1, 2002. Until that time, Money Services Businesses are to continue to use the Bank SAR form, Form TD F 90–22.47. 67FR48704 7/26/02

• Approval of application of Nordea Bank Finland

  The Federal Reserve Board announced the approval of the application of Nordea Bank Finland Plc, Helsinki, Finland, to establish a branch in New York, New York and acquire ownership of a commercial lending company, American Scandinavian Banking Corp., New York, New York. FRB Press Release 7/26/02

• DIT Test Schedule

  Federal Reserves Financial Services publishes the DIT Test Schedule 7/26/02

• FDIC Merger Decisions: Annual Report to Congress

  Approval of bank absorptions when the resulting bank is a state nonmember bank. Report 7/26/02

• The Rise of Risk Management: Basel and Beyond

  FDIC hosts a symposium on risk management and the new Basel Capital Accord. Symposium Description 7/26/02

• FDIC Issues Rule on Corporate Debt Collection

  The regulation sets forth the procedures the FDIC will follow in collecting debts owed to the United States. These procedures include collection of debts through administrative offset, salary offset, administrative wage garnishment and tax refund offset. 67FR48525 (text) 7/25/02

• Enhancing Financial Transparency

  In response to the recent wave of corporate accounting controversies that has shaken investor confidence in U.S. financial markets, the FDIC gathered prominent policymakers, academic experts, and business and accounting professionals on June 4, 2002 to participate in a daylong symposium addressing transparency issues. This issue of FYI and an accompanying Bank Trends report summarize the comments provided by participants in the June FDIC symposium. FYI 7/25/02

• FinCEN Announces it is Rescinding an Exemption

  FinCEN is announcing that it is rescinding an exemption from the provisions of the Bank Secrecy Act regulations granted in 1972 to persons required to register as brokers or dealers in securities (``broker-dealers'') solely to permit the sale of variable annuities contracts issued by life insurance companies. 67FR48388 (text) 7/24/02

• Software Change to the Fedwire Funds Service Message Format

  A number of changes were made to the Fedwire Funds Service message format to facilitate mapping from a SWIFT MT103 to Fedwire . One of these changes was to add a second optional element to Business Function Code field tag {3600} to map to the SWIFT field 26T, Transaction Type Code. This second optional element of the Business Function Code {3600} is intended to be present only when the first element, Business Function Code, is CTR. Software Change and Clarification of Field {3600} 7/24/02

• FBIIC Policy on Sponsorship of GETS Cards

  In order to provide guidance to financial organizations seeking sponsorship for NCS services, the Financial and Banking Information Infrastructure Committee (FBIIC) is developing a series of policies on the sponsorship of priority telecommunications access for private sector entities through the NCS. OCC 2002-33 FBIIC GETS Process 7/24/02

• Prohibition Against Interstate Deposit Production: Annual Loan-to-Deposit Ratios

  The FRB, OCC and FDIC recently issued updated host-state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (Interstate Act). OCC 2002-32, 2002 Host State Loan-to-Deposit Ratios 7/24/02

• OCC Issues Alert on Unauthorized Banking Entities

  This issuance alerts banks and financial regulators that Trinity Savings Bank and Goldman & Stein are not authorized to conduct banking or financial business in Belize. Neither entity has been authorized by the OCC to conduct banking in the United States. ALERT 2002-8 7/24/02

• 2001 FDIC Program Performance Report

  The Report compares actual performance to the goals established in the FDIC's 2001 Annual Performance Plan. 7/24/02

• OFAC

  The Office of Foreign Assets Control has issued guidance on transshipments to Iran. Guidance7/24/02

• Regulators Draft Guidance on Credit Card Lending

  Under the auspices of the FFIEC, the OCC, FRB, FDIC and OTS have developed account management and loss allowance guidance for credit card lending. FRB Press Release, OCC:NR 2002-61, OTS 02-32, FDIC-PR-86-2002, FFIEC Press Release , Guidance 7/23/02

• FDIC Issues Proposed Rule on State Banks Chartered as Limited Liability Companies

  The FDIC proposes to issue a regulation that would clarify that a bank that is chartered as an LLC under State law would be considered to be ``incorporated'' under State law if it meets certain criteria. 67FR48054 (text) 67FR48054 (pdf) 7/23/02

• Customer ID Proposals Published in Federal Register

  The proposed rules on customer identification and verification have now been published in the Federal Register. Written comments must be submitted within 45 days from today. 67FR48289 (text), 67FR48289 (pdf)7/23/02

• Treasury Issues Guidance on the USA PATRIOT Act, Pending Issuance of Final Rule

  The Department of the Treasury and FinCEN issued an interim rule advising financial institutions on how to comply with the statutory provisions of section 312 of the USA PATRIOT Act, pending issuance of the final rule that will be published by October 25, 2002. PO-3270 7/22/02

• FDIC Issues Alert on Missing Cashiers Checks

  The FDIC has been informed by Bank of America, Dallas, Texas, that 1,000 of the bank's cashier's checks have been stolen while in transit from the check printer to the bank. The bank's routing number is 114000019, and the account number is 001641003748. FDIC:FIL-80-2002 7/22/02

• FDIC Issues Warning on Entities That May Be Conducting Banking Operations Without Authorization
  

  The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 30), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-79-2002 7/22/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-78 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-78-2002 7/22/02

• FTC Testifies on Identity Theft and the Impact on Seniors

  The FTC told the U.S. Senate Special Committee on Aging that about 10 percent of consumers who called the agency to report that they are victims of identity theft are age 60 or older. FTC Press Release 7/19/02

• OCC Unveils New Version of Web-based Manual To Ease Access to Updated Application Requirements

  The OCC announced that the first six booklets in the Comptroller's Licensing Manual are now available on the OCC's Internet site. OCC:NR 2002- 60 Licensing Manual 7/19/02

• Administrative Actions Against PNC Financial Services Group

  The Board of Governors of the Federal Reserve System and the U.S. Securities and Exchange Commission jointly announced the issuance of administrative actions addressing bank supervisory and securities law-related matters against The PNC Financial Services Group, Inc., Pittsburgh, Pennsylvania, a bank holding company. FRB Press Release 7/19/02

• OFAC Comment Deadline Looms

  July 19 is the deadline for submitting comments on OFAC's proposal to make information public on OFAC civil penalty actions Don't miss the opportunity to tell them what you think! OFAC Civil Penalties Proposal How to Write a Comment Letter 7/18/02

• OCC Issues Examination Procedures for COPPA

  Financial institutions are subject to COPPA if they operate a Web site(s) or online service(s) (or portion thereof) directed to children, or have actual knowledge that they are collecting or maintaining personal information from a child online. OCC 2002-31 Examination Procedures 7/18/02

• Treasury Department and Social Security Administration Announce Plans to Develop ID Verification System to Help Fight Identity Fraud

  The Treasury Department and the Social Security Administration (SSA) announced an agreement to develop and implement a system by which financial institutions may access a database to verify the authenticity of Social Security Numbers provided by customers at account opening. PO-3264 7/18/02

• Treasury and Federal Financial Regulators Issue Patriot Act Regulations on Customer Identification

  The Department of the Treasury and seven federal financial regulators issued proposed rules that would require certain financial institutions to establish minimum procedures for identifying and verifying the identity of customers seeking to open new financial accounts. Written comments on the proposed rules may be submitted within 45 days of their publication in the Federal Register. FRB Press Release, FDIC: PR-85-2002, NCUA Press Release, SEC Press Release, OCC:NR 2002-59 , OTS 02-31 7/18/02

• OCC Announces New Electronic Interpretations and Actions

  Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. Electronic Interpretations and Actions 7/18/02

• OCC Releases CRA Evaluations For National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of June 15 through July 14, 2002. The list contains only national banks and insured federal branches of foreign banks that have received ratings. The possible ratings are outstanding, satisfactory, needs to improve, and substantial noncompliance. OCC:NR 2002-58 7/18/02

• THE WAIT IS OVER -- Proposed Rules on Customer ID Just Issued

  The proposed rules on customer identification and verification, required by Section 326 of the USA PATRIOT Act have now been issued by the various regulatory agencies. Proposed Rules on Customer ID Just Issued 7/17/02

• OCC Issues Correction to Previously Issued Rule

  On June 6, 2002, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC published a final rule in the Federal Register that amended each Agency's regulation governing deposit production offices. Today they issued a document that corrects a typographical error in the OCC's regulation. 67FR46842 7/17/02

• OCC Announces New Enforcement Actions and Terminations

  The OCC announced 11 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 3 terminations of an existing enforcement action. OCC:NR 2002- 57 7/17/02

• NCUA Submits Comment to SEC Supporting Credit Union Ability to Offer Sweep Accounts

  The NCUA announced that it has issued a letter to the SEC in response to the SEC's request for comment on the Notice of Application of Evangelical Christian Credit Union (ECCU) for Exemptive Relief (SEC File No. S7-12-01). In the letter, NCUA Chairman Dennis Dollar stated, We support exemptive relief for ECCU and for all federally-insured credit unions to permit them to offer sweep account services without registration to all their members on the same terms and conditions as banks and thrifts.” NCUA Press Release 7/17/02

• FBI Studying SSN Misusage for Terrorist Links

  The FBI has reported to Congress that it is undertaking a multi-phase data mining project that seeks to identify potential terrorist related individuals through Social Security Number misusage analysis. The report was in connection with a Congressional hearing on identity theft. FBI Statement to Congress on ID Theft 7/16/02

• Regulators are Hosting an Inter-agency Information Technology Security Conference

  The Regulators are hosting an inter-agency information technology security conference October 15 – 17, 2002 at the Hilton DFW Lakes Executive Center in Grapevine, Texas. OTS Press Release 7/16/02

• RESPA Proposed Rule to Simplify and Improve the Process Of Obtaining Mortgages to Reduce Settlement Costs to Consumers

  HUD submitted to Congress a draft of its proposed rule to reform the Real Estate Settlement Procedures Act ("RESPA"). Congress has 15 days from the date of submission to review this draft proposal before HUD can publish it in the Federal Register for public comment. The draft proposed rule has three major parts. First, the proposal clarifies disclosure rules applicable to transactions involving mortgage brokers. Second, the proposed rule amends the good faith estimate disclosure ("GFE") to increase clarity and make it more useful to consumers. Third, the draft proposal creates a system of guaranteed cost disclosures pursuant to a safe harbor under Section 8 of RESPA. Press Release (Word doc) 7/15/02

• FRB's Financial Services Publishes Operating Circular #7

  The Operating Circular sets forth the terms under which the Federal Reserve Bank of (City) maintains Securities Accounts and effects Transfers of Book-Entry Securities for Participants. By maintaining a Securities Account, a Participant agrees to all theprovisions of this Circular, as amended from time to time. Operating Circular #7 7/15/02

• Service Charge Information via FedLine for the Web

  FedLine for the Web provides Internet access to many of the Federal Reserve's financial services. These services can be accessed from most Internet-connected PCs within your institution, eliminating the need for a dedicated FedLine terminal with proprietary Federal Reserve software. Initially, only select services will be available on FedLine for the Web, but the Federal Reserve will continue to develop and introduce new Web-based services to support your business environment. Service Charge Information 7/15/02

• Account Management Information via FedLine for the Web

  FedLine for the Web provides Internet access to many of the Federal Reserve's financial services. These services can be accessed from most Internet-connected PCs within your institution, eliminating the need for a dedicated FedLine terminal with proprietary Federal Reserve software. Initially, only select services will be available on FedLine for the Web, but the Federal Reserve will continue to develop and introduce new Web-based services to support your business environment. Account Management Information 7/15/02

• Agenices Request Comment on Changes to the Call Report

  The FFIEC, of which the agencies are members, has approved the agencies' publication for public comment of proposed revisions to the Consolidated Reports of Condition and Income (Call Report) for banks and the Thrift Financial Report (TFR) for savings associations, which are currently approved collections of information. 67FR46250 7/12/02

• FedACH File Edit Change

  A change to FedACH edit procedures will align the stale date and duplicate file parameters. Beginning July 29, 2002, the stale date edit will check for file creation dates that are older than four days. Previously the stale date edit looked for files that were over five days old. FRB Financial Services 7/12/02

• New Quarterly Letter to FDIC Stakeholders to Communicate Significant Agency Activities

  The Letter to Stakeholders will be published at the end of each calendar quarter. It will appear in both electronic and hard-copy forms. This is just one of many tools we are using to communicate significant activities at the FDIC. FDIC:FIL-77-2002, Letter to Stakeholders FYI 7/11/02

• Minutes of Board discount rate meetings, April 1, 2002, to May 6, 2002

  The Federal Reserve Board released the minutes of its discount rate meetings from April 1 to May 6, 2002. FRB Press Release 7/11/02

• Written Agreement with Rurban Financial and State Bank and Trust

  The Federal Reserve Board announced the execution of a Written Agreement by and among Rurban Financial Corp., Defiance, Ohio; The State Bank and Trust Company, Defiance, Ohio; the Federal Reserve Bank of Cleveland; and the Ohio Division of Financial Institutions. FRB Press Release 7/11/02

• U.S. Lifts Financial Advisories on Israel, Lebanon and St. Kitts & Nevis

  FinCEN notified U.S. financial institutions that, based on the improvements in their anti-money laundering regimes and on the FATF action, the U.S. is withdrawing the FinCEN Advisories on Israel, Lebanon, and St. Kitts & Nevis. Treasury Press Release FinCEN Advisory #26A FinCEN Advisory #18A, FinCEN Advisory #17A, Financial Action Task Force (FATF) 7/10/02

• FTC Calls for Stiffer Penalties for Identity Thieves

  The Federal Trade Commission testified that it supports a Senate bill to increase penalties for identity thieves who use stolen identities to commit certain federal crimes. FTC Press Release 7/10/02

• FDIC Issues Warning on Entities That May Be Conducting Banking Operations Without Authorization

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 29), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-74-20027/10/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on four separate financial institutions are in circulation. FDIC:FIL-75-2002 7/10/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-76 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-76-2002 7/10/02

• Federal Reserves Financial Services Publishes the Summary of Billing Service Changes

  The survey results identified a need to improve the Summary Statement of Service Charges. Specifically, customers indicated they had trouble interpreting the Billing statement and reconciling their monthly charges. Summary of Billing Service Changes 7/9/02

• Written Agreement with First American Bank

  The Federal Reserve Board announced the execution of a Written Agreement by and among First American Bancorp, Inc., Stonewall, Oklahoma, the First American Bank, Stonewall, Oklahoma, the Federal Reserve Bank of Kansas City, and the Oklahoma State Banking Department. FRB Press Release 7/9/02

• Orders of Restitution against former directors of Great Eastern Bank

  The Federal Reserve Board announced the issuance of Orders of Restitution against William Chiang, Paul Lee, Joseph C.C. Kuo, Lih Yuh Kuo, and Ching-Tseh Yao, all former directors of the Great Eastern Bank, Flushing, New York. FRB Press Release 7/9/02

• FOMC Announces 2003 Schedule

  The Federal Open Market Committee announced its tentative meeting schedule for 2003 FRB Press Release 7/8/02

• FDIC Issues July List of Banks Examined for CRA Compliance

  The FDIC 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 April 2002. FDIC:PR-84-2002 7/8/02

• Opportunities for Former FDIC Employees

  The FDIC is collecting the names of former employees who may be interested in working on projects, including foreign technical assistance projects, when needed by federal government agencies, international organizations, or private organizations seeking persons knowledgeable about banking and financial issues. These projects vary in nature, scope and duration. Employment Opportunity 7/5/02

• OCC Issues Bulletin on OFAC Proposed Rulemaking

  The OCC bulletin transmits a notice of proposed rulemaking published by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) on June 19 concerning the availability of information. This notice was previously announced on BOL. OCC 2002-30 7/5/02

• FFIEC Publishes Call Report Validation Criteria

  Added March 31, 2002 Call Report Validation Criteria Edits Expressed in Boolean Logic: PDF | Excel - FINAL, revised July 1, 2002 7/5/02

• OCC Issues Alert on Fictitious Regulatory Agency Issuances

  This issuance alerts banks and financial regulators to the distribution from an unknown source by e-mail, fax, or regular mail of fictitious regulatory agency issuances that contain proposals involving claims to certain international payments reportedly held by the OCC. The names and signatures on these documents are not those of real OCC officials. OCC:Alert 2002-7 7/3/02

• FDIC Sells Nextbank Owned Credit Card Portfolio

  The FDIC has announced the sale of the owned credit card portfolio from the former NextBank, National Association, Phoenix, Arizona (NextBank). NextBank was closed on February 7, 2002, by the Office of the Comptroller of the Currency and the FDIC was named receiver. FDIC:PR-83-2002 7/3/02

• FFIEC Publishes Statistical Release

  March 31, 2002 E16 Country Exposure Statistical Release 7/3/02

• Suspicious Activity Reporting Rule for Broker-Dealers Finalized

  In a continuing effort to expand the coverage of suspicious activity reporting to all potentially vulnerable sectors of the financial services industry, the Financial Crimes Enforcement Network announced a new rule requiring brokers and dealers in securities to report suspicious activity. FinCEN Press Release7/2/02

• FTC Charges of Violating Debt Collection and Credit Reporting Laws

  Canoga Park, California-based D.C. Credit Services, Inc. and company co-owner, David Cohen, have agreed to pay a $300,000 civil penalty as part of a settlement of Federal Trade Commission charges that they violated the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). In addition to requiring the civil penalty, the consent decree to settle the charges would permanently ban defendant David Cohen from engaging in debt collection activity. FTC Press Release 7/2/02

• FDIC Issues Final Rule on an Agency Reorganization

  On June 30, 2002, the FDIC, through an internal organizational order, merged the Division of Supervision and the Division of
  Compliance and Consumer Affairs and as a result of the merger, changed the name of the ``Division of Supervision'' and ``Division of Compliance and Consumer Affairs'' to the ``Division of Supervision and Consumer Protection'' (DSC). 67FR44351 (text) 7/2/02

• FDIC To Market Connecticut Bank of Commerce Assets

  The FDIC announced that it will market a $248 million loan portfolio from the failed Connecticut Bank of Commerce, Stamford, Connecticut, whose offices were located in several Connecticut cities and New York, New York, within the next 45 days. FDIC:PR-82-2002 7/2/02

• Testing, Testing

  Is it a subliminal message from the regulators emphasizing the importance of testing your compliance program and testing your information security measures, or is it simply a reflection of the fact that some Internet technology simply isn't ready for prime time? Start your day with a chuckle by viewing an FDIC Webcast on "Enhancing Financial Transparency". You'll see that even the regulators can get befuddled by technology. (And once you get past the humorous opening part, the Webcast really is excellent.) 7/1/02

• FRB of Philly Enters into Written Agreement with PA Bank

  The latest bank to bite the BSA dust is a Pennsylvania bank which entered into a written agreement with the Federal Reserve Bank of Philadelphia June 20, 2002. The Agreement requires the bank to conduct a comprehensive review of BSA compliance controls and procedures and identification and reporting of suspicious activity and make a written report of what it finds to the reserve bank, plus a lot more. You'll want to read the order. FRB Press Release 7/1/02

• Money Smart, a training program from the FDIC

  The FDIC recognizes the importance of financial education, particularly for people with little or no banking experience. That 's why they created Money Smart, a training program to help adults outside the financial mainstream enhance their money skills and create positive banking relationships. Money Smart 7/1/02

• FDIC Approves Assumption of the Insured Deposits and Certain Assets of the Universal Federal Savings Bank, Chicago, Illinois

  The FDIC has approved the assumption of the insured deposits of Universal Federal Savings Bank, Chicago, Illinois by Chicago Community Bank, Chicago, Illinois. FDIC:PR-81-2002, Spanish Version 7/1/02

• FDIC Approves Assumption of The Insured Deposits and Certain Assets of The Connecticut Bank of Commerce, Stamford, Connecticut

  The FDIC has approved the assumption of the insured deposits of The Connecticut Bank Of Commerce, Stamford, Connecticut, by Hudson United Bank, Mahwah, New Jersey. FDIC:PR-80-2002 7/1/02

• FDIC Makes Public May Enforcement Actions; One Administrative Hearing Scheduled

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in May. One administrative hearing is scheduled for July. FDIC:PR-79-2002 7/1/02

• FDIC Chairman Appoints Cottrell L. Webster As Agency's Ombudsman

  FDIC Chairman Don Powell today announced the appointment of Cottrell L. Webster to the post of Ombudsman. Webster replaces Ronald F. Bieker, who will become the agency's Regional Director in Kansas City. Webster now serves as Director of the Division of Supervision's Memphis Regional Office. FDIC:PR-78-2002 7/1/02

• FDIC is Centralizing the Consumer Affairs Function

  The FDIC is pleased to announce that it is centralizing its consumer affairs function with the establishment of the National Consumer Response Center (CRC) within the Division of Supervision and Consumer Protection. This move will improve efficiency and enhance service to consumers needing assistance. The CRC will become operational on July 1, 2002. FDIC:FIL-73-2002 7/1/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on Guaranty Bank of California, Los Angeles, California, are in circulation. The routing number is 122235902. It appears the checks may be circulating nationwide. FDIC:FIL-72-2002 7/1/02

• FDIC Issues Alert on Missing Cashier's Checks

  The FDIC has been informed by Bank West of Nevada, Las Vegas, Nevada, that 284 of the bank's cashier's checks are missing and may have been stolen. The bank's routing number is 122401778. FDIC:FIL-71-2002 7/1/02

The Federal Emergency Management Agency (FEMA) has published a final rule [79 FR 7087] identifying communities in Indiana, Kentucky , New York and Pennsylvania where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension on March 3, 2014, because of noncompliance with the floodplain management requirements of the program.

Treasury has targeted the financial and support networks of the Haqqani Network leadership by designating Saidullah Jan, Yahya Haqqani, and Muhammad Omar Zadran as Specially Designated Global Terrorists (SDGTs) under Executive Order (E.O.) 13224. All three are being designated for acting for or on behalf of the Haqqani Network while Muhammad Omar Zadran is also being designated for acting for or on behalf of the Taliban. Information regarding the designations has been posted in a BOL OFAC Update.

A news release from the Financial Industry Regulatory Authority (FINRA) has announced the assessment of an $8 million fine against New York-based Brown Brothers Harriman & Co. (BBH) for substantial anti-money laundering (AML) compliance failures and other related violations. The fine, the largest levied by FINRA for AML violations, resulted from a failure to have an adequate anti-money laundering program in place to monitor and detect suspicious penny stock transactions; failing to sufficiently investigate potentially suspicious penny stock activity brought to the firm's attention; the failure to file SARs; and the lack of an adequate supervisory system to prevent the distribution of unregistered securities. As part of the FINRA action, BBH's former Global AML Compliance Officer Harold Crawford was also fined $25,000 and suspended for a month.

The Federal Emergency Management Agency (FEMA) has published a final rule [79 FR 7087] identifying communities in Indiana, Kentucky , New York and Pennsylvania where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension on March 3, 2014, because of noncompliance with the floodplain management requirements of the program.

Treasury has targeted the financial and support networks of the Haqqani Network leadership by designating Saidullah Jan, Yahya Haqqani, and Muhammad Omar Zadran as Specially Designated Global Terrorists (SDGTs) under Executive Order (E.O.) 13224. All three are being designated for acting for or on behalf of the Haqqani Network while Muhammad Omar Zadran is also being designated for acting for or on behalf of the Taliban. Information regarding the designations has been posted in a BOL OFAC Update.

A news release from the Financial Industry Regulatory Authority (FINRA) has announced the assessment of an $8 million fine against New York-based Brown Brothers Harriman & Co. (BBH) for substantial anti-money laundering (AML) compliance failures and other related violations. The fine, the largest levied by FINRA for AML violations, resulted from a failure to have an adequate anti-money laundering program in place to monitor and detect suspicious penny stock transactions; failing to sufficiently investigate potentially suspicious penny stock activity brought to the firm's attention; the failure to file SARs; and the lack of an adequate supervisory system to prevent the distribution of unregistered securities. As part of the FINRA action, BBH's former Global AML Compliance Officer Harold Crawford was also fined $25,000 and suspended for a month.

• Statement by FTC Chairman Muris Regarding Proposed RESPA Rule Revisions by Housing and Urban Development

  Speaking at the National Press Club in Washington, D.C. , Department of Housing and Urban Development (HUD) Secretary Mel Martinez announced a proposal that would reform the regulatory requirements under the Real Estate Settlement Procedures Act (RESPA) that govern settlement fees paid by home buyers. FTC Press Release 6/28/02

• OCC Survey Shows Measured Response By Banks to Slowing Economy

  The OCC's eighth annual Survey of Credit Underwriting Practices found that underwriting standards for commercial and retail loans tightened for the second consecutive year in a measured response to a slowing economy and pockets of deteriorating product performance. OCC:NR 2002-56 6/28/02

• OCC Announces New Electronic Interpretations and Actions

  Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. Electronic Interpretations and Actions 6/28/02

• FDIC Expands Money Smart Alliance Program

  The FDIC announced that the U.S. Department of Housing and Urban Development, the U.S. Small Business Administration, the United Way of Greater Los Angeles and the CHARO Business Center have joined the FDIC in an effort to raise financial literacy in underserved communities and bring the unbanked into healthy banking relationships through the FDIC's Money Smart financial education program. The announcement was made at a news conference in Los Angeles. FDIC:PR-75-2002 6/28/02

• FDIC Announces Receivership of Universal Federal Savings Bank, Chicago, Illinois

  Universal Federal Savings Bank, Chicago, Illinois, was closed by the Office of Thrift Supervision (OTS), and the Federal Deposit Insurance Corporation (FDIC) was named receiver. FDIC:PR-76-2002 Statement 6/28/02

• Fed Leaves Interest Rates Unchanged

  The Federal Open Market Committee decided to keep its target for the federal funds rate unchanged at 1 3/4 percent. FRB Press Release 6/27/02

• Scam Artists Use Do Not Call Registry to Commit Fraud

  Scam artists capitalizing on the popularity of existing state "Do Not Call" lists and the proposed FTC "Do Not Call" registry have devised yet another method to trick consumers into giving up personal information, such as their Social Security number, bank account number, credit card number or telephone calling card number. FTC Press Release 6/27/02

• FFIEC Adds June Forms

  The FFIEC added the June 2002 FFIEC 002 Reporting Form and instructions and the June 2002 Instructions for Preparation of the FFIEC 031 and 041 Reporting Forms. 6/27/02

• Financial Institution Guidelines for Making Same-day Federal Tax payments in EFTPS

  The guidelines provide consolidated information to financial institutions regarding same-day payment methods to remit Federal tax payments for business taxpayers. FRB Financial Services 6/27/02

• Reg C Changes Published in the Federal Register

  The FRB has published in the Federal Register, its amendments to Regulation C (the HMDA reg) and staff interpretations. There is also a new technical amendment which requires lenders to ask telephone applicants for monitoring information. The technical amendment on telephone applicants is effective for applications taken beginning January 1, 2003. 67FR43217 (text), 67FR43218 (text) 6/27/02

• FDIC Announces Receivership Of The Connecticut Bank Of Commerce, Stamford, Connecticut

  The Connecticut Bank of Commerce, Stamford, Connecticut, was closed by the Banking Commissioner, Connecticut Department of Banking, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. FDIC:PR-74-2002 Closing Information 6/27/02

• New Money Smart Initiatives Announced at San Antonio Event

  As part of the national rollout of the Federal Deposit Insurance Corporation's (FDIC) Spanish-language version of its highly successful Money Smart financial education program, several new initiatives were announced at a news conference in San Antonio, Texas. FDIC:PR-73-2002 6/27/02

• FDIC Announces Release of Spanish Language Version of Money Smart Program

  Calling financial education "key to building assets and achieving long-held dreams," FDIC Chairman Don Powell launched the Spanish language version of the FDIC's adult financial education curriculum, Money Smart, at a news conference in Pilsen, a Latino neighborhood in Chicago. FDIC:PR-71-2002 , Speech 6/26/02

• FDIC Issues Removal and Prohibition Order and a Civil Money Penalty Against a Texas Banker

  The FDIC has issued a removal and prohibition order and a civil money penalty of $2,500 against Vernon Beryl Murdock, Jr., formerly with the Kent County State Bank, Jayton, Texas. FDIC:PR-72-2002 6/26/02

• Banking agencies issue host state loan-to-deposit ratios

  The FRB, OCC and FDIC iissued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These ratios update data released in June 2001. Ratios, FRB Press Release, OCC:NR 2002-55 FDIC:FIL-70-2002, FDIC-PR-70-2002 6/25/02

• OCC Issues Booklet on Insurance Activities

  The OCC issued a booklet that provides information to national banks and OCC examiners on the risks, controls and supervision of national bank insurance activities. OCC:NR 2002- 54, Booklet 6/25/02

• Regulation C Changes Become Official

  The FRB has published its amendments to Regulation C (the HMDA reg) and staff interpretations reported on earlier in BOL Top Stories. There is also a new technical amendment which requires lenders to ask telephone applicants for monitoring information.. The technical amendment on telephone applicants is effective for applications taken beginning January 1, 2003. FRB Press Release 6/24/02

• Regulators Distribute Call Report for Second Quarter 2002

  Banks should complete your second quarter Call Report, review it for accuracy, and submit the report electronically as soon as possible. Except for certain banks with foreign offices, your completed report must be received by July 30, 2002. FDIC:FIL-69-2002 6/24/02

• OTS Announces 81 CRA Exams Secheduled for 3rd Quarter 2002

  The OTS announced that 81 savings associations are scheduled for Community Reinvestment Act (CRA) examinations during the third quarter of 2002. OTS 02-30, Exam Schedule 6/24/02

• FATF Annual Report for 2001-2002 released

  The Financial Action Task Force on Money Laundering (FATF) issued its thirteenth annual report. The report outlines the main achievements of the FATF in 2001-2002 under the Presidency of Hong Kong, China, including the significant progress that has been made in combating terrorist financing and in the work on non-cooperative countries and territories (NCCTs). FATF Press Release 6/24/02

• OCC Issues Bulletin on Previously Issued Proposed Rule to Implement a Provision of the USA PATRIOT Act

  Section 312 of the act furthers this goal by requiring U.S. financial institutions to establish due-diligence policies,
  procedures, and controls reasonably designed to detect and report money laundering through correspondent accounts and private banking accounts of non-U.S. persons. Private banking accounts involve accounts of $1 million or more for individuals that are administered by an officer, employee, or agent of a financial institution acting as a liaison between the financial institution and the direct or beneficial owner of the account. OCC 2002-29 6/24/02

• Bill McPherson Named Deputy Comptroller for Large Banks; Michael Brosnan Appointed Examiner-in-Charge

  The Office of the Comptroller of the Currency announced that James W. (Bill) McPherson has been named Deputy Comptroller for Large Banks. Mr. McPherson, who has served as the Examiner-in-Charge for Bank of America, NA, since January, 1998, will report to Douglas W. Roeder, Senior Deputy Comptroller for Large Banks. OCC:NR 2002-53 6/24/02

• Federal Reserve Financial Services Issues Memo on Unilateral Repo Adjustments

  As previously announced in Clearing Memorandum #236, Fedwire ® Securities Service participants will be permitted on payment date to unilaterally cancel a preauthorized debit associated with a Repo Claim Adjustment to another Fedwire participant. This will be done by submitting a Unilateral Adjustment Request to the Federal Reserve, with the understanding that the Fedwire participant sending the request has not notified the Fedwire participant counterparty and has no agreement from that counterparty. Clearing Memo #238 6/21/02

• Fedwire Securities Service Enhanced Functionality

  Under the category of Book-Entry Securities, the Federal Reserve Financial Services has just posted information on repo tracking and interim accounting cash adjustments. Federal Reserve Financial Services 6/21/02

• Treasury and FRB Announce Plans for Redesigned Notes

  In keeping with their strategy of maintaining the security of Federal Reserve notes by enhancing the design of U.S. currency every seven to ten years, the Department of the Treasury's Bureau of Engraving and Printing (Bureau) and the Federal Reserve Board announced plans to release the next generation of redesigned notes, with improved security features to deter counterfeiting. FRB Press Release 6/21/02

• FFIEC Updates the June 2002 Validation Criteria for the FFIEC031 and FFIEC041 Call Reports

  Validity Edits: PDF | Word - FINAL, revised June 11, 2002
  Quality & Intraseries Edits: PDF | Word - FINAL, revised June 7, 2002 6/21/02

• FDIC Money Smart Curriculum Adopted By South Carolina Adult Education Program

  The FDIC and the South Carolina Department of Education's Workplace Resource Center (WRC) today announced the adoption of the FDIC's Money Smart financial education program as the financial literacy curriculum for use in South Carolina's statewide adult education system. FDIC:PR-69-2002 6/21/02

• OTS Announces 81 CRA Exams Secheduled for 3rd Quarter 2002

  The schedule reflects OTS's implementation of Section 712 of the Gramm-Leach-Bliley Act, which extends the CRA examination cycle from approximately every two years to four or five years for institutions with aggregate assets of not more than $250 million and CRA examination ratings of “Satisfactory” or “Outstanding” respectively. OTS 02-30 6/21/02

• FDIC Issues Warning on Entities That May Be Conducting Banking Operations Without Authorization

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 28), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-67-2002 6/20/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on eight separate financial institutions are in circulation. It appears these checks may be circulating nationwide. FDIC:FIL-68-2002 6/20/02

• OCC Issues Final Rule on Capital Equivalency Deposits

  The OCC is revising certain requirements regarding CED deposit arrangements to increase flexibility for, and reduce burden on, certain Federal branches and agencies, based on a supervisory assessment of the risks presented by the particular institution.
  67FR41619 (text) 6/19/02

• FRB Seeking Nominations for Consumer Advisory Council

  The Council advises the Board on the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters on which the Board seeks advice. The group meets in Washington, D.C., three times a year. FRB Press Release 6/19/02

• FRB Financial Services Makes Holiday District Announcement

  The Federal Reserve Banks will be closed on Thursday, July 4, for the Fourth of July holiday. Please refer to the instructions for information on your local office. Unless it is listed separately, all of the particular District's offices and branches will follow the same Cash schedule. Holiday District Announcement 6/19/02

• Banking Industry Performance Remains Strong Despite Lingering Economic Weaknesses

  A report released in the FDIC's Regional Outlook describes recent signs of a consumer-led recovery in the U.S. economy, but cautions that banks remain exposed to lingering economic risks, notably in the area of subprime consumer lending. FDIC:PR-68-2002 6/19/02

• FDIC Appoints 43 Executives as Part of Upcoming Reorganization

  The reorganization and the appointments, which were made through a competitive selection process, become effective June 30.
  "My vision for a reorganized, refocused, accountable and more proficient FDIC is taking shape," Chairman Powell said today. "With these selections, the FDIC now has in place the management structure and team to put a greater percentage of our resources on the line, where our most critical work gets done." FDIC:PR-67-2002 6/18/02

• EFT Newsclips

  The Treasury Department's Financial mangement Service has published its Summer 2002 edition of EFT Newsclips. Among the articles we think are noteworthy are a report on the number of banks (nearly 600) who are participating in the Electronic Transfer Account ("ETA") program; beginning 1/1/04, Treasury checks will no longer have personal identification numbers (such as SSNs) on them; more than 100,000 businesses and individuals have signed up for the online EFTPS program; free marketing materials are available to promote EFTPS; the policy for government ACH reclamations has been clarified; and new SSA procedures are being implemented to quickly resolve erroneous reports from financial institutions of the death of Direct Deposit benefit recipients. EFT Newsclips6/18/02

• OCC Issues Bulletin on Homeownership Counseling: Notice of Statutory Requirement

  This bulletin announces the renewal of a statute requiring all creditors to provide notice of the availability of homeownership counseling to certain first-time mortgage loan applicants and to certain homeowners who are delinquent on their home loans. OCC 2002-27 6/18/02

• OCC Issues Bulletion on Prohibition Against Use of Interstate Branches Primarily for Deposit Production

  As reported earlier in the Federal Register, the OCC has issued a final rule regarding the prohibition against using interstate
  branches for purposes of "deposit production" found in section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act (Riegle-Neal Act). OCC 2002-28 6/18/02

• OCC Releases CRA Evaluations For 38 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of May 15 through June 14, 2002. OCC:NR 2002- 51 6/17/02

• FDIC Issues Several Alerts on Fictitious Checks

  The FDIC has learned that several fictitious cashier's checks are in circulation. The following alerts have been issued: FDIC:FIL-60-2002, FDIC:FIL-61-2002, FDIC:FIL-65-2002 6/17/02

• FDIC Issues Alert on Stolen Bank Note Security Paper

  The FBI has asked the FDIC to alert all FDIC-supervised banks to the theft of bank note security paper from the Denver County (Colorado) Vital Statistics Office. FDIC:FIL-62-2002 6/17/02

• FDIC Issues Warning on Entities That May Be Conducting Banking Operations Without Authorization

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 27), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-63-2002 6/17/02

• FDIC Issues FIL on FinCEN Advisory

  The Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) published issues 28 through 32 of its FinCEN Advisory in April 2002. FDIC:FIL-64-2002 6/17/02

• OCC Announces 2 New Enforcement Actions and 1 Termination

  The OCC announced 2 new enforcement actions taken against national banks and 1 termination of an existing enforcement action. OCC:NR 2002-52 6/17/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-66 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-66-2002 6/17/02

• Settlement Agent Information

  Under the category of Net Settlement, the Federal Reserve Financial Services has just posted information for settlement agents, with operating hours, contacts and forms. Federal Reserve Financial Services 6/14/02

• FDIC Chairman Announces Money Smart Alliance Program to Promote Financial Education in Underserved Communities

  Speaking before a meeting of the National Association of Affordable Housing Lenders, Powell stressed that financial education — particularly of those who are outside the financial mainstream — is a matter of critical importance both to regulators and the American people as a whole. FDIC:PR-66-2002 6/14/02

• FFIEC Adds Forms and Call Report Edits

  The FFIEC has added the June 2002 FFIEC 031 Reporting Form and FFIEC 041 Reporting Form , updated the UBPR order form, and posted validation criteria for the FFIEC031 and FFIEC041 Call Reports. FFIEC 6/13/02

• FDIC Publishes Quarterly Banking Profile - First Quarter 2002

  The Quarterly Banking Profile is a quarterly publication that provides the earliest comprehensive summary of financial results for all FDIC-insured commercial banks and savings institutions. This report card on industry status and performance includes written analyses, graphs, and statistical tables. 6/13/02

• FDIC Minority Depository Institutions Program

  The FDIC Board adopted a new Policy Statement Regarding Minority Depository Institutions. The new Policy Statement has been updated to reflect changes in certain regulations and to expand the FDIC's Minority Depository Institutions Program. Enhancements to the program include increased communication with Minority Depository Institutions, better coordination with trade associations that represent Minority Depository Institutions, defined roles of a national program coordinator and regional coordinators, and more opportunities for institutions to request technical assistance. 6/13/02

• FFIEC Updates Reporting Forms

  The FFIEC has updated two Reporting Forms for June 2002 -- FFIEC 031(Consolidated Reports of Condition and Income for A Bank With Domestic and Foreign Offices) and FFIEC 041 (Consolidated Reports of Condition and Income for A Bank With Domestic Offices. FFIEC 031, FFIEC 041 6/12/02

• FFIEC Reports that the March 31, 2002 Uniform Bank Performance Report are Online

  The online version of the UBPR includes 5 years of continuous financial history that is restated quarterly to reflect call report amendments and new analytical tools. FFIEC Press Release 6/12/02

• FATF to Publish Annual Report and Report on Non-Cooperative Countries and Territories

  The Financial Action Task Force on Money Laundering (FATF), will issue its thirteenth annual report on its anti-money laundering and anti-terrorist financing activities as well as a new report updating its findings on the non-cooperative countries and territories in the international fight against money laundering. FATF Press Release 6/12/02

• Chairman Details Progress Made in Implementing The Federal Trade Commission's New Privacy Agenda

  Remarks Presented at the Networked Economy Summit in Reston, Virginia
  Presenting remarks titled "Protecting Consumers' Privacy: Goals and Accomplishments" at the Networked Economy Summit in Reston, Virginia, Federal Trade Commission Chairman Timothy J. Muris said that the FTC has made significant strides in implementing the Privacy Agenda announced last October, and pledged continued diligence to ensure that consumers are protected as the "information economy" grows more complex. FTC Press Release 6/12/02

• OCC Issues Bulletin on Reg Z Final Rule

  As earlier announced by the Federal Reserve, the revisions clarify how creditors that place Truth in Lending Act disclosures on the same document with the credit contract may satisfy the requirement for providing the disclosures, in a form the consumer may keep, before consummation. OCC 2002-26, Final Rule 6/11/02

• OFAC

  Yesterdays OFAC change should not affect banks. It has simply issued License Application Guidelines for specific licenses for travel to Cuba to engage in educational exchanges not pursuant to a degree program. OFAC 6/11/02

• OTS Issues Proposed Rule for Recordkeeping and Confirmation Requirements that Effect Securities Transactions

  The proposal affords savings association customers the same protections and disclosures provided to bank customers; ensures that examiners will be able to evaluate a savings association's compliance with securities laws and to assess whether savings associations effect securities transactions safely and soundly; and provides savings associations with formal guidance for effecting securities transactions. 67FR39886 (text) 6/11/02

• OTS Proposes Standards for Thrift Broker-Dealer Activities Without SEC Registration

  The OTS is proposing standards for federal savings associations that may now perform certain broker-dealer activities, just like banks, without registering with the Securities and Exchange Commission. OTS 02-29 6/11/02

• OCC Notes FinCEN's Country Updates

  The OCC has issued AL 2002-5 to advise banks of a revision in the list of countries detailed in a previous OCC Advisory Letter (AL 2002-2). These deal with identification of countries with serious deficiencies in their counter-money-launder systems, as previously identified by FinCEN advisories. OCC: AL 2002-5 6/10/02

• FR-FMS Account Management Guide Revised

  The Federal Reserve Financial Management Service has revised its account management guide. It is designed as a practical reference to make it easier for financial institutions to manage reserve accounts. Account Management Guide 6/10/02

• FDIC Points to FATF Guidance

  The FDIC has published FIL-59-2002 to alert banks to guidance on detecting terrorist financing recently published by the Financial Action Task Force on Money Laundering (and previously noted on BOL). FDIC:FIL-59-2002 6/10/02

• Exception Fax Forms

  The Federal Reserves Financial Services publishes ACH Return Item Exception Fax Form. 6/10/02

• Virginia Woman Indicted in Scheme to Steal Keystone Assets

  FDIC Inspector General Gaston L. Gianni, Jr., has announced that Norma Faye Canipe of Virginia was indicted on June 5 in the Southern District of West Virginia, Charleston, West Virginia, in connection with a scheme to obtain property and other assets owned by Terry L. Church and her family. Church is the former Vice President of the failed First National Bank of Keystone, Keystone, West Virginia. FDIC:PR-65-2002 6/10/02

• FedWire Security Services Enchanced Functionality

  The implementation of Repo Tracking and Interim Accounting cash adjustments will not begin in June 2002, as previously announced. However, participants may continue to test Interim Accounting and Repo Tracking in the Depository Institution Testing (DIT) environment. FedLine 6/10/02

• Fed Announces FedImage Services

  The Federal Reserve announced FedImage Services, an all-new image service for financial institutions, recognizing the increasing role that image-based services are playing in the evolution of the U.S. payments system and the migration toward more electronic payments. FedImage Services 6/10/02

• FDIC Imposes Civil Money Penalties Against Five Ohio Bankers

  The FDIC has issued civil money penalties totaling $17,000 against five directors and officers of The Monitor Bank, Big Prairie, Ohio. FDIC:PR-64-2002 6/7/02

• OCC Speeches

  Mark A. Nishan, Chief of Staff, Office of the Comptroller of the Currency, Before a Bankers Outreach Meeting Minneapolis, Minnesota, NR 2002- 50 Remarks by John D. Hawke, Jr., Comptroller of the Currency, Before The Risk Management Association's Capital Management Conference Washington, D.C. , OCC: NR 2002- 49 6/7/02

• HUD Notice Clarifies Applicability of Homeownership Counseling Requirement

  In Mortgagee Letter 2002-12, the Department of Housing and Urban Development describes the braod scope of the types of loans to which the homeownership counseling notices apply. Mortgagee Letter 2002-12 6/6/02

• Agencies Amend Rule On Prohibition Against Using Interstate Branches Primarily for Deposit Production

  The Riegle-Neal Interstate Banking and Branching Efficiency Act prohibits any bank from establishing or acquiring a branch outside of its home state primarily for the purpose of deposit production. Section 106 of the Gramm-Leach-Bliley Act expands this prohibition to include any branch of a bank controlled by an out-of-state bank holding company. To conform their regulations to this statutory change, the agencies have amended their rules so that the prohibition against deposit production offices also applies to any bank or branch of a bank controlled by an out-of-state bank holding company. Joint Final Rule FRB Press Release, OCC:NR 2002- 47, FDIC-PR-63-2002, FDIC:FIL-58-2002 67FR38844 (pdf) 67FR38844 (txt) 6/6/02

• OCC Reports Bank Trading Revenues Over $3 Billion

  Earnings from cash instruments and derivatives trading activities at U.S. commercial banks grew to $3.1 billion in the first quarter 2002, an increase of $492 million from the previous quarter. The notional amount of derivatives grew by $946 billion this quarter to $46.3 trillion. OCC:NR 2002- 48, Bank Derivatives Report 6/6/02

• FDIC Issues June List of Banks Examined for CRA Compliance

  The FDIC 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 March 2002. FDIC:PR-62-2002 6/6/02

• Call and Thrift Financial Reports

  The March 31, 2002, reports are now posted online. 6/5/02

• FDIC Consumer News

  Tips on banking long distance, saving for retirement and tracing old bank accounts are featured in the latest edition of Consumer News. 6/5/02

• Makes Public April Enforcement Actions; No Administrative Hearings Scheduled

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in April. No administrative hearings are scheduled for June. FDIC:PR-61-2002 6/5/02

• FDIC Announces Record Banking Industry Earnings; Returns at Large Banks Climb Most

  Commercial banks had record earnings of $21.7 billion in the first quarter, surpassing the previous quarterly record by 9.6 percent, the Federal Deposit Insurance Corporation reported today. The industry's return on assets (ROA), a basic yardstick of earnings performance, rose to 1.33 percent, the third-highest ever. FDIC:PR-60-2002 6/5/02

• CAC Schedules Next Meeting

  The Federal Reserve Board announced that the Consumer Advisory Council will hold its next meeting on Thursday, June 27. The meeting will take place in Dining Room E, Terrace level, in the Board's Martin Building. The session will begin at 9:00 a.m. and is open to the public. FRB Press Release 6/4/02

• OCC Issues Bulletin on Independent Trust Bank Assessment

  Pursuant to newly revised 12 CFR 8.6(c), the independent trust bank assessment is based on "Fiduciary and Related
  Assets" as reported on Schedule RC-T of FFIEC Forms 031 and 041. OCC 2002-25 6/4/02

• FDIC Issues Preliminary Bank Earnings Report

  Wider net interest margins at large banks, combined with slow growth in noninterest expenses, helped propel commercial bank profits to a record $21.7 billion in the first quarter. Bank Earnings Report, FYI 6/4/02

• FinCEN Holds Law Enforcement Seminar on Informal Value Transfer Systems

  A seminar to discuss issues surrounding informal value transfer systems, to include hawala, was held May 29thy at the FinCEN. The seminar was attended by over 50 representatives from the law enforcement community. FinCEN News Release 6/4/02

• Treasury Department Issues Proposed Regulation Implementing Section 312 of the USA PATRIOT Act

  FinCEN publishes the Due Diligence Anti-Money Laundering Programs for Certain Foreign Accounts Implementing Section 312 of the USA PATRIOT ACT. This was earlier announced on BOL. Proposed Rule 6/4/02

• "Touring the Board" added to the FRB Web Site

  The site provides information about visiting the Federal Reserve in person and includes a "virtual tour" offering photos of the Board's buildings and art collection, as well as an architectural history of the Board's Eccles Building. FRB Press Release 6/4/02

• FFIEC Releases UBPR Schedule

  The FFIEC has announced that UBPR's will be available online 30 days after an institution's call report is filed. For the call reports which were due 4/30/02, UBPRs are available online beginning June 5. FFIEC Press Release 6/3/02

• OFAC Lists Changes

  OFAC has added new entities to its list, removed one entity, and revised the entry for another. BOL OFAC PAGE 6/3/02

• FATF Releases Public Consultation Paper on the Review of the Forty Recommendations

  The FATF is consulting all interested parties during its review of the Forty Recommendations on money laundering – the global anti-money laundering standard – to ensure that the Recommendations adequately address the changes in money laundering
  techniques and trends, new international developments, and other factors. FATF Press Release 6/3/02

• FDIC Issues Third Quarter CRA Examination Schedule

  The FDIC has issued the public list of institutions that it has scheduled for a Community Reinvestment Act (CRA) examination during the third quarter of 2002. FDIC:PR-59-2002 6/3/02

• OCC Issues Final Rule on Assessment of Fees

  As earlier published in the Federal Register and reported by BOL, the final rule updates section 8.6 to reference the appropriate portion of new forms issued by the Federal Financial Institutions Examination Council (FFIEC), which replace the FFIEC form
  currently referenced in section 8.6(c). OCC: 2002-24 6/3/02

• TO ACCESS PRIOR TOP STORIES

  To access previous Top Stories (such as the ones from May, for example), use the Top Stories Archive drop-down menu above, or the drop-down menu at the bottom of this page to select the month you wish to review.

The FDIC has released the ratings received by state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). Of the 99 institutions listed, four garnered "outstanding" ratings, and one received a "needs to improve."

The Financial Services Policy Committee of the Conference of Presidents of the Federal Reserve System has issued a press release thanking payment system participants for their feedback to the Reserve Banks' September 2013 consultation paper, "Payment System Improvement – Public Consultation Paper." Responses were received from individual financial institutions, businesses, payment networks and processors, software vendors, payment innovators, consultants, and consumers, as well as from trade groups representing financial institution and business members. The Reserve Banks also announced they are exploring the need for faster retail payments and for identifying gaps and opportunities related to payment system security. Updates on the payments system improvements efforts can be seen at FedPaymentsImprovement.org.