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


Top Story Compliance Related

10/17/2019

Kraninger submits report to House committee

The CFPB has released written testimony of CFPB Director Kathlees Kraninger before the House Committee on Financial Services, presented with the Bureau's Spring 2019 Semi-Annual Report to Congress.

10/17/2019

Proposed policy statement on allowances for credit losses

The OCC, Federal Reserve, FDIC, and NCUA have published in today's Federal Register a proposed interagency policy statement and request for comment on Allowances for Credit Losses. The proposed policy statement statement describes the measurement of expected credit losses under the current expected credit losses (CECL) methodology and the accounting for impairment on available-for-sale (AFS) debt securities in accordance with FASB ASC Topic 326; supervisory expectations for designing, documenting, and validating expected credit loss estimation processes, including the internal controls over these processes; maintaining appropriate ACLs; the responsibilities of boards of directors and management; and examiner reviews of ACLs.

Comments on the proposed interagency policy statement must be received by December 16, 2019.

10/16/2019

Brokerage firm supervisor charged for mishandling of ADRs

The Securities and Exchange Commission has announced that Domenick Migliorato, a former supervisor of the securities lending desk at Industrial and Commercial Bank of China Financial Services LLC (ICBCFS), has agreed to settle charges for his supervisory failures involving the improper handling of transactions involving American Depositary Receipts (ADRs). Earlier this year, ICBCFS agreed to pay more than $42 million to settle SEC charges. Migliorato has agreed to settle without admitting or denying the charges and to pay a $150,000 penalty. He also is prohibited from acting in a supervisory capacity for at least three years.

10/16/2019

Federal Reserve Section 19 letters

The Federal Reserve Board indicates it issued four “Section 19" letters during the third quarter of 2019. The letters notified individuals who have pleaded guilty to or been found guilty of a crime involving dishonesty or breach of trust that they are legally prohibited under section 19 of the Federal Deposit Insurance Act and section 205 of the National Credit Union Act from becoming or continuing as an institution-affiliated party with respect to any federally-insured financial organization (and certain other organizations) without permission.

The letters were issued to former institution-affiliated parties of:

  • American State Bank and Trust Company, Great Bend, Kansas (conviction for theft of property worth at least worth $1,500, but less than $24,999)
  • Regions Bank, Boca Raton, Florida (entered into a pretrial diversion or similar program in connection with the resolution of an indictment that charged her in connection with an “organized scheme to defraud”)
  • Alamerica Bancorp. Inc, Birmingham, Alabama (father and son who were convicted of conspiracy to commit wire fraud and of wire fraud)

10/15/2019

CFPB financial law task force announced

The Consumer Financial Protection Bureau has announced that it will establish a task force to examine ways to harmonize and modernize federal consumer financial laws. The Task Force on Federal Consumer Financial Law will examine the existing legal and regulatory environment facing consumers and financial services providers and report to Director Kraninger its recommendations for ways to improve and strengthen consumer financial laws and regulations.

10/15/2019

FATF Week

Starting Sunday October 13, representatives from 205 countries and jurisdictions around the world, the IMF, UN, World Bank and other organizations, are meeting for FATF Week in Paris, France. Six days of meetings will focus on disrupting financial flows linked to crime and terrorism and discuss ways to contribute to global safety and security.

The FATF has announced the release of a consolidated table of assessment ratings received by the 205 FATF-member jurisdictions in their peer reviews of the effectiveness of their technical compliance with the FATF recommendations for effective AML/CFT systems.

10/15/2019

$1.7B digital token scam stopped by SEC

The Securities and Exchange Commission reports it has filed an emergency complaint and obtained a temporary restraining order against two offshore entities conducting an alleged unregistered, ongoing digital token offering in the U.S. and overseas that has raised more than $1.7 billion of investor funds.

10/15/2019

Regulators issue joint statement on digital assets

The U.S. Commodity Futures Trading Commission (CFTC), Financial Crimes Enforcement Network (FinCEN) and the SEC have issued a joint statement to remind persons engaged in activities involving digital assets of their anti-money laundering and countering the financing of terrorism (AML/CFT) obligations under the Bank Secrecy Act (BSA):

  • AML/CFT obligations apply to entities that the BSA defines as “financial institutions,” such as futures commission merchants and introducing brokers obligated to register with the CFTC, money services businesses (MSBs) as defined by FinCEN, and broker-dealers and mutual funds obligated to register with the SEC. Among those AML/CFT obligations are the requirement to establish and implement an effective anti-money laundering program (AML Program) and recordkeeping and reporting requirements, including suspicious activity reporting (SAR) requirements.

10/15/2019

Turkish ministries and officials sanctioned

The Treasury Department announced yesterday that OFAC has taken action against two Turkish ministries and three senior Turkish government officials in response to Turkey’s military operations in Syria. The Ministry of National Defence and the Ministry of Energy and Natural Resources, as well as the Minister of National Defence, Minister of Energy and Natural Resources, and the Minister of the Interior have been blocked. Persons that engage in certain transactions with the designated persons may themselves be exposed to designation. Furthermore, any foreign financial institution that knowingly facilitates any significant financial transactions for or on behalf of the persons designated today could be subject to U.S. correspondent or payable through account sanctions.

For identifying information on the designated ministries and officials, see BankersOnline's OFAC Update.

10/15/2019

Citibank fined $30 million for OREO violations

The OCC announced on Friday a $30 million civil money penalty against Citibank, N.A., Sioux Falls, South Dakota, for violations related to the holding period for other real estate owned (OREO). Although the bank has repeatedly committed to implementing corrective actions, it has failed to do so, and violations have continued to occur.

For additional information, see "Citibank pays $30 million for OREO violations," in BankersOnline's Penalty pages.

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