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Banker's Toolbox solidifies its position as the premier solution for fast-growing financial institutions with the release of BAM+ 4.0 upgrade.
Banker's Toolbox continues to lead the BSA/AML and Fraud prevention marketplace with the release of BAM+ 4.0. This solution provides increased detection with more versatility, transparency and control. BAM+ 4.0 also boasts a new customer due diligence platform, Due Diligence Manager, which will keep institutions compliant with the impending beneficial ownership mandates. (Read full press release here.)

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OFAC Venezuela FAQ

OFAC has posted a Frequently Asked Question (FAQ) explaining what constitutes “profit” for the purposes of Subsection 1(a)(iv) of Executive Order 13808 (“Imposing Additional Sanctions With Respect to the Situation in Venezuela").


CSBS upgrades sites

The Conference of State Bank Supervisors has announced an upgrade to its NMLS Resource Center, Federal Registry, NMLS Help Links, and URL Manager websites to strengthen security posture by expanding the use of https across the sites. As a result, depending on browser configurations, users may need to hold the Ctrl button on their keyboard while clicking a link.  This will open the page in a new tab within the browser.


Federal disaster relief increased for Florida

President Trump has made additional disaster assistance available to the State of by authorizing an increase in the level of federal funding for debris removal undertaken in the State of Florida as a result of Hurricane Irma. Under the President’s major disaster declaration issued for the State of Florida on September 10, 2017, Federal funding was made available for debris removal at 75 percent of the total eligible costs. Under the President’s new order, the federal share for debris removal, including direct federal assistance, has been increased to 90 percent of the total eligible costs for a period of 30 days from the date of the declaration.


FinCEN corrects beneficial ownership form

FinCEN has published [82 FR 45182] corrections to the Certification Form in Appendix A to 31 CFR 1010.230 (Beneficial ownership requirements for legal entity customers). FinCEN indicated that all the changes were technical corrections. The corrections were described as follows in the Federal Register document:

"As revised, appendix A (Certification Form) is identical to the original version except for the following: In the first sentence in Part I under the heading “What information do I have to provide?”, the term “foreign persons” is changed to “non-U.S. persons”; and in Part II: The heading of Section II b. is changed to “b. Name, Type, and Address of Legal Entity for Which the Account is Being Opened:”; and in the headings of the last column in the Tables in Section II c and Section II d, the term “Foreign Persons” is changed to “Non-U.S. Persons” and the term “Social Security Number” is added after the term “persons”; and in footnote 1, the term “Foreign Persons” is changed to “Non-U.S. Persons” and “a Social Security Number,” is inserted after the word “provide”.

A quick analysis of the changes suggests that the addition of the "type" of legal entity business (corporation, LLC, etc.) as a required piece of information and of "Social Security number" as an acceptable identifying number for non-U.S. persons will require adjustments in the implementation plans of financial institutions and third-party service providers.

BankersOnline has updated the form in Appendix A to § 1010.230 in its Regulations pages.


FTC to hold informational injury seminar

The Federal Trade Commission will host a workshop on December 12, 2017, to examine questions about the injury consumers suffer when information about them is misused. The workshop will address questions such as how to best characterize these injuries, how to accurately measure such injuries and their prevalence, and what factors businesses and consumers consider when evaluating the tradeoffs involved in collecting, using, or providing information while also potentially increasing their exposure to injuries. The workshop, which is free and open to the public, will be at the Constitution Center, 400 7th St., SW, Washington, D.C. It will be webcast live on the FTC’s website.


NCUA issues prohibition notices

The NCUA has issued two notices of prohibition to individuals who have been convicted of crimes of dishonesty and, as a result, are prohibited from participating in the affairs of any federally insured financial institution:

  • A former employee of Virginia State University Federal Credit Union in South Chesterfield, Virginia, who had earlier pleaded guilty to the charges of bank fraud and aggravated identity theft and been sentenced to more than three years in prison and five years’ supervised release, and ordered to pay $125,805.22 in restitution
  • A former employee of Education Credit Union in Amarillo, Texas, who had earlier pleaded guilty to the charges of robbery, and aiding and abetting. She had been sentenced to more than eight years in prison and two years’ supervised release, and ordered to pay $53,519.50 in restitution


FSOC rescinds nonbank financial company designation

The Financial Stability Oversight Council (FSOC) has announced that it has rescinded its earlier determination that material financial distress at American International Group, Inc. (AIG) could pose a threat to U.S. financial stability and that AIG shall be subject to supervision by the Board of Governors and enhanced prudential standards.


FDIC releases August enforcement actions

The FDIC has released a list of orders of administrative enforcement actions taken against banks and individuals in August 2017. There were a total of 22 orders, four notices, including one notice issued in May, and one adjudicated decision. The administrative enforcement actions in those orders consisted of two consent orders; three removal and prohibition orders; seven Section 19 orders; one civil money penalty; one termination of insurance; eight terminations of consent orders; four notices; and one adjudicated decision.

Under the adjudicated decision, the FDIC Board issued an order removing a board member and former president of an Amarillo, Texas, bank, prohibiting him from participation in the banking industry, and assessing a $200,000 civil money penalty for violations of Regulation O, engaging in unsafe and unsound banking practices, and breaching his fiduciary duties. See our Penalty page for details. There was also an order assessing a $21,000 penalty against a California bank for engaging in a pattern or practice of violations of flood insurance requirements. The three removal/prohibition orders were issued against individuals formerly affiliated with banks in Fort Walton Beach, Florida, Medota, Illinois, and Fort Pierce, Florida.

Notices of charges and hearing are preliminary notices of penalties for which the respondent individual or bank has a right to request a hearing before an Administrative Law Judge. The May 2017 notice was issued to a Louisiana bank alleged to have engaged in an extensive pattern or practice of flood insurance-related violations. The three notices issued in August involve pending removal/prohibition orders issued against two individuals affiliated with a Laredo, Texas, bank, and one individual affiliated with a bank in Everett, Massachusetts.


OCC Supervision Operating Plan for FY 2018

The Office of the Comptroller of the Currency has released its bank supervision operating plan for fiscal year 2018. Strategies for the year will focus on:

  • Cybersecurity and operational resiliency
  • Commercial and retail credit loan underwriting, concentration risk management, and the allowance for loan and lease losses
  • Business model sustainability and viability and strategy changes
  • Bank Secrecy Act/anti-money laundering (BSA/AML) compliance management
  • Change management to address new regulatory requirements


NCUA assistance for CUs impacted by Maria

The NCUA has posted an article detailing the disaster-recovery assistance available to the eight federally chartered credit unions headquartered in Puerto Rico and the Virgin Islands.


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