Skip to content

Banker's Toolbox, Inc., leaders in compliance solutions for financial institutions, announced the acquisition of Georgia-based MainStreet Technologies (MST). MST is an industry leader in the loan risk management space. This acquisition adds to a strong and growing portfolio of compliance-related solutions and will continue to enhance the value Banker's Toolbox brings to both their customers and the industry. (Read full press release here.)

Top Story Security Related


OFAC extends general licenses

OFAC has announced it has extended the expiration date of certain general licenses related to En+ Group plc (EN+), United Company RUSAL PLC (RUSAL), and JSC EuroSibEnergo (ESE) from January 21, 2019 to January 28, 2019. This short-term extension enables En+, RUSAL, and ESE to continue to operate as they execute technical steps that must be taken prior to the completion of the agreement between OFAC and these entities.


Fed app teaches U.S. currency security features

Money Adventure, an interactive smartphone and tablet application designed to teach elementary school students about the security and design features of Federal Reserve notes, has been launched by the Federal Reserve Board. The application complements other material available through the Board's Currency Education Program. Money Adventure is available for download on iPhones and iPads. An Android version is scheduled for launch later in the year.


NCUA supervisory priorities for 2019

The National Credit Union Administration has outlined its primary areas of supervisory focus for 2019 in its Letter 19-CU-01 to credit unions. The NCUA's extended exam cycle will be fully implemented, and agency examiners will continue using the streamlined small credit union exam program procedures for most credit unions that have assets under $50 million. For all other credit unions, examiners will conduct risk-focused examinations, concentrating on the areas of highest risk, new products and services, and compliance with federal regulations.

NCUA examiners will have increased flexibility to conduct suitable examination work offsite. In the agency’s Flexible Examination Program (FLEX) pilot, examiners were able to conduct as much as 35 percent of examination time offsite. The NCUA expects this increased flexibility will reduce the time impact on credit unions, save on travel costs and increase staff productivity.

The Letter briefly described examiners' focus in several areas.

  • BSA Compliance: Examiners will perform more in-depth reviews of credit unions’ Bank Secrecy Act and anti-money laundering policies, procedures, and processes to assess compliance with regulatory requirements for customer due diligence and for identifying and verifying beneficial owner(s) of legal entity members.
  • Concentrations of Credit: Examiners will have a continued focus on large concentrations of loan products and concentrations of specific risk characteristics.
  • Consumer Compliance: As in 2018, examiners will continue to perform limited reviews of Home Mortgage Disclosure Act (HMDA) quarterly Loan/Application Registers, or full-year Loan/Application Registers when applicable. The reviews will evaluate federal credit unions’ good faith efforts to comply with 2018 HMDA data collection and reporting requirements. These reviews will account for the statutory partial exemptions that took effect on May 24, 2018. The NCUA will continue to focus on Military Lending Act (MLA) compliance, and examiners will evaluate credit unions’ efforts to comply with the MLA. Examiners will review credit unions’ compliance with Regulation B’s notification requirements following adverse action taken on consumer credit applications. They will also review overdraft policies and procedures for compliance with Regulation E.
  • Current Expected Credit Losses (CECL): examiners will inquire about efforts a credit union has taken to prepare for the new accounting standard, and whether a credit union has performed analysis for how CECL would alter the Allowance for Loan and Lease Losses funding needs.
  • Information Systems and Assurance: Examiners will continue conducting information security maturity assessments with the Automated Cybersecurity Examination Toolbox (ACET). Examiners will use the ACET to assess credit unions with over $250 million in assets that have not previously received an assessment. The security, confidentiality, and integrity of credit union member information remains a key supervisory priority for the NCUA. Two additional areas of supervisory focus for 2019 are the assessment of credit union IT risk management to ensure it effectively identifies, remediates, and controls inherent risks to appropriate residual risk levels, and oversight of service provider arrangements to ensure credit unions implement effective risk-based supply chain management.
  • Liquidity and Interest Rate Risks: Examiners will assess liquidity and interest rate risk management in light of upward rate trends.


U.S. and Argentina hold AUDIF meeting

A statement was issued by the Treasury Department after the conclusion of the fifth meeting of the Argentina-United States Dialogue on Illicit Finance (AUDIF) on January 9-10 in Buenos Aires, Argentina. The main objective of the AUDIF is to advance shared goals on countering money laundering, terrorist financing, proliferation financing, corruption and other illicit finance threats and typologies.


Mnuchin on Russia Sanctions

Treasury Secretary Mnuchin issued a statement in advance of yesterday's classified briefing for Members of the House of Representatives on the sanctions against Russian oligarch and Specially Designated National Oleg Deripaska and three companies he controlled at the time sanctions were imposed, En+ Group PLC (En+), United Company RUSAL PLC (Rusal), and EuroSibEnergo (ESE).


Texas bank gets C&D for BSA/AML shortcomings

The Federal Reserve Board and the Banking Commissioner of the Texas Department of Banking have issued a Consent Cease and Desist Order to Commercial State Bank, Andrews, Texas, directing that the bank take specified actions following identification in a recent examination of the bank by the Federal Reserve Bank of Dallas and the Department of significant deficiencies in the bank’s risk management and compliance with applicable laws, rules, and regulations relating to anti-money laundering. Those deficiencies resulted in a compliance program violation.

The bank was directed to take action with regard to board oversight; the bank's BSA/AML compliance program; customer due diligence; suspicious activity monitoring and reporting; the bank's transaction monitoring system; and independent testing.


OFAC targets Venezuela currency exchange network

On Tuesday, January 8, OFAC sanctioned Venezuelan individuals and companies involved in a significant corruption scheme designed to take advantage of the Government of Venezuela’s currency exchange practices, generating more than $2.4 billion in corrupt proceeds. This designation, pursuant to Executive Order (E.O.) 13850, targets seven individuals, including former Venezuelan National Treasurer Claudia Patricia Diaz Guillen (Diaz) and Raul Antonio Gorrin Belisario (Gorrin), who bribed the Venezuelan Office of the National Treasury (ONT, or Oficina Nacional del Tesoro) in order to conduct illicit foreign exchange operations in Venezuela.

In addition to Diaz and Gorrin, OFAC designated or blocked five other individuals and 23 entities, pursuant to E.O. 13850, for their roles in the bribery scheme, and identified one private aircraft as blocked property.

For information on a General License issued in connection to these designations and on the identities of the designated individuals, entities and aircraft, see our OFAC Update.


OCC releases workshops schedule

The OCC has announced its 2019 schedule of workshops for board directors and bank management of national community banks and federal savings associations. The OCC offers five workshops at a cost of $99 each:

  • Building Blocks: Keys to Success for Directors and Senior Management
  • Risk Governance: Improving Director Effectiveness
  • Compliance Risk: What Directors Need to Know
  • Credit Risk: Directors Can Make a Difference
  • Operational Risk: Navigating Rapid Changes

The OCC offers the workshops nationwide to directors of national community banks and federal savings associations. Senior management and other key executives of institutions supervised by the OCC are also eligible to attend the Building Blocks workshop.

Workshops are limited to 35 participants. Attendees will receive course materials, supervisory publications, and lunch.


NCUA prohibition notices

The NCUA announced on Monday it had issued one prohibition order and one prohibition notice in December to these individuals formerly employed by federally insured credit unions:

  • a former employee of County & Municipal Employees Credit Union in Edinburg, Texas, who agreed and consented to the issuance of a prohibition order and agreed to comply with all of its terms to settle and resolve the NCUA Board’s claims against her.
  • a former employee of Northwest Baptist Federal Credit Union in Seattle, Washington, who had pleaded guilty to the charge of theft and been sentenced to four months in prison, three years’ supervised release, and ordered to pay $460,485.65 in restitution.

These individuals are prohibited from participating in the affairs of any federally insured financial institution.


Updated BSA training video

The FDIC has announced the availability of an updated technical assistance video providing an overview of current BSA/AML and OFAC requirements for directors of FDIC-supervised banks and savings associations. The updated video reflects changes in federal laws and regulations since it was originally issued in 2013, including the beneficial ownership and customer due diligence requirements and related exam procedures.


Training View All

Penalties View All

Search Top Stories