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Top Story Compliance Related


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.


OCC CRA evaluation schedule

The OCC has released its schedule of Community Reinvestment Act (CRA) evaluations to be conducted in the third and fourth quarters of 2020.


State Department ends Iran sanctions waiver

Secretary of State Pompeo announced yesterday the end of the sanctions waiver covering all remaining JCPOA-originating nuclear projects in Iran – the Arak reactor conversion, the provision of enriched uranium for the Tehran Research Reactor, and the export of Iran’s spent and scrap research reactor fuel. The sanctions waiver covering these activities will end following a final, 60-day wind-down period allowing companies and entities involved in these activities to cease their operations.

Secretary Pompeo also announced the designation of Majid Agha’i and Amjad Sazgar pursuant to E.O. 13382 for engaging or attempting to engage in activities that have materially contributed to, or pose a risk of materially contributing to, the proliferation of weapons of mass destruction. Identification information for these individuals can be found in BankersOnline's OFAC Update.


FinCEN adjusts estimates of bank SAR costs

FinCEN has published a notice and request for comments [85 FR 31598] on a proposed renewal, without change, of its currently approved information collections relating to reports of suspicious transactions. Although no changes are proposed to the information collections themselves, the request for comments covers a proposed updated Paperwork Reduction Act burden estimate for the information collections. FinCEN has revised its burden estimate at the suggestion of the Office of Management and Budget. In its notice, FinCEN requests comments on its revised methodology for making the burden estimates. Comments must be filed by July 27, 2020.


OFAC sanctions senior Nicaraguan officials

On Friday, OFAC designated two senior Nicaraguan government officials, Julio Cesar Aviles Castillo and Ivan Adolfo Acosta Montalvan, for supporting the corrupt Ortega regime. As a result of Friday’s action, all property and interests in property of these individuals 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 such individuals are also blocked. OFAC’s regulations generally prohibit all dealings by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked or designated persons.

For identification information, see BankersOnline's OFAC Update.


Labor Department approves electronic disclosures of pension plans

The Employment Benefits Security Administration of the Department of Labor has approved and submitted for Federal Register publication on May 27, a final rule adopting a new, additional safe harbor for employee benefit plan administrators to use electronic media, as a default, to furnish information to participants and beneficiaries of plans subject to the Employee Retirement Income Security Act of 1974 (ERISA). The rule allows plan administrators who satisfy specified conditions to provide participants and beneficiaries with a notice that certain disclosures will be made available on a website, or to furnish disclosures via email.

Individuals who prefer to receive disclosures on paper can request paper copies of disclosures and opt out of electronic delivery entirely. The rule will become effective July 27, 2020. The rule was published 5/27/2020 at 85 FR 31884.


SEC amends financial disclosure rules

The Securities and Exchange Commission has announced that it has voted to adopt amendments to its rules and forms to improve for investors the financial information about acquired or disposed businesses, facilitate more timely access to capital, and reduce the complexity and costs to prepare the disclosure. The amendments will update Commission rules which have not been comprehensively addressed since their adoption, some of them over 30 years ago.

The final rules, which affect SEC rules at 17 CFR parts 210, 230, 239, 240, 249, 270, and 274, will be effective January 1, 2021. Compliance will be required beginning with each registrant's fiscal year beginning on or after that date.


Zimbabwe sanctions regs amended

OFAC has amended the Zimbabwe Sanctions Regulations at 31 CFR 541 to remove a general license that authorizes all transactions involving Agricultural Development Bank of Zimbabwe and Infrastructure Development Bank of Zimbabwe as a result of these entities being removed from OFAC’s Specially Designated Nationals and Blocked Persons List.


Regulators release principles for small dollar lending

Yesterday, the Federal Reserve Board, FDIC, NCUA, and OCC jointly issued principles for offering small-dollar loans in a responsible manner to meet financial institutions customers' short-term credit needs. The agencies issued the "Interagency Lending Principles for Offering Responsible Small-Dollar Loans" to encourage supervised banks, savings associations, and credit unions to offer responsible small-dollar loans to customers for consumer and small business purposes.


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