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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.

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Counterfeit cashier's checks on Virginia bank

The OCC has issued its Alert 2019-7 concerning counterfeit cashier's checks using the routing number of National Bank of Blacksburg (Virginia). The checks are being presented for payment nationwide in connection with a variety of online auction and job opportunity scams. For details of the Alert, see BankersOnline's Alerts and Counterfeits page.


FedNow Service for faster payments

The Federal Reserve Board has reported that the Reserve Banks will develop a new round-the-clock real-time payment and settlement service, to be called the FedNow Service, to support faster payments in the United States. Comments are requested on how the new service might be designed to most effectively support the full set of payment system stakeholders and the functioning of the broader U.S. payment system. The Board anticipates the FedNow Service will be available in 2023 or 2024.

The Board also announced its intention to explore the expansion of Fedwire Funds Service and National Settlement Service hours, up to 24x7x365, to facilitate liquidity management in private-sector real-time gross settlement services for faster payments and to support a wide range of payment activities, beyond those related to faster payments. The Board's Federal Register notice and FAQs concerning the Faster Payments initiative were provided with the Board's press release. Comments will be accepted for 90 days following publication of the Board's notice.


Treasury sanctions Russian Federation

Treasury has implemented two sanctions on the Russian Federation as part of measures imposed by the U.S. government under the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991, as amended, in response to Russia’s use of the “Novichok” nerve agent in Salisbury, United Kingdom in March 2018. OFAC has issued a Russia-related Directive under the Executive Order of August 1, 2019. The Directive prohibits U.S. banks from participating in the primary market for non-ruble denominated bonds issued by the Russian sovereign and also prohibits U.S. banks from lending non-ruble denominated funds to the Russian sovereign. OFAC has also published FAQs to provide guidance on the directive.


Names removed from SDN List

The names of 13 individuals and 35 entities from Columbia, Guatemala, Honduras, Panama, and Mexico with the Kingpin Act designation have been removed from OFAC's SDN List. To identify the deleted entries, see BankersOnline's OFAC Update.


NCUA bans seven from financial institution involvement

The NCUA issued two prohibition orders and five prohibition notices in July 2019 banning the following individuals from participating in the affairs of any federally insured financial institution:

  • Joey E. Camp, a former employee of Peoria Fire Fighters Credit Union, Peoria, Illinois, who had been sentenced on one count of theft.
  • Amy Denise Fincher, a former employee of Rheem Arkansas Federal Credit Union, Fort Smith, Arkansas, who had pleaded guilty to the charge of theft.
  • Christopher Dillon Hughes, a former institution-affiliated party of Dixies Federal Credit Union, Darlington, South Carolina, who had 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 him.
  • Jennifer L. Mix, a former institution-affiliated party of Hornell Erie Credit Union, Hornell, New York, who had 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.
  • Ignacio Morales, a former employee of Borinquen Federal Credit Union, Philadelphia, Pennsylvania, who had pleaded guilty to the charges of conspiracy to defraud the government, embezzlement, false reports, and money laundering.
  • Benjamin Tyler Severson, a former employee of Marine Credit Union, La Crosse, Wisconsin, who had pleaded no contest to one charge of identity theft.
  • Shannon N. Smith, a former employee of Appalachian Community Federal Credit Union, Gray, Tennessee, who had been sentenced on the charge of theft of property


OFAC lists impact of sanctions

In a presentation at the Center for Strategic and International Studies in Washington, D.C., OFAC Under Secretary of the Treasury Mandelker discussed the results of sanctions in the last two years:

  • Cut off billions of dollars in revenue that would have otherwise flowed to the world’s largest state sponsor of terror, Iran;
  • Disrupted major networks that had provided Bashar al-Assad with oil and other resources he has used to brutalize the Syrian people, destabilize the region, and fund terror;
  • Choked off funds to Hizballah, causing the terrorist organization to undertake an unprecedented plea for funding;
  • Expanded sectoral and other sanctions in response to Russia’s continued aggression, leading to major western firms abandoning joint exploration ventures with Russian companies and a drop in foreign direct investment;
  • Exposed and disrupted the malign activity of Russian oligarchs, such as Oleg Deripaska, who are closely linked to the Kremlin, forcing them to divest ownership in large corporations and rendering them pariahs to the international business community;
  • Disrupted North Korean shipping, financial, and export networks and worked in concert with our allies and the UN to create a diplomatic opening for discussion;
  • Led the Financial Action Task Force (FATF) in adopting comprehensive measures for how countries must regulate and supervise digital assets, including digital currencies, to address and mitigate the associated moneylaundering and terrorist risks;
  • Targeted and disrupted networks of human rights abusers and corrupt officials all over the world, including the illegitimate Maduro regime in Venezuela and kleptocrats in the Democratic Republic of the Congo; and
  • Exposed and disrupted numerous illicit finance schemes around the world, from ISIS to Al-Qaeda, from drug kingpins to transnational criminal organizations.


Iran’s Foreign Minister designated

OFAC has announced the designation of Iran’s Foreign Minister, Javad Zarif, for his actions for or on behalf of, directly or indirectly, the Supreme Leader of the Islamic Republic of Iran. For identity information, see BankersOnline's OFAC Update.


Credit card telemarketing scheme shut down

The FTC reports that a federal court has issued temporary orders shutting down two schemes that allegedly bilked millions of dollars from consumers struggling with credit card debt. A complaint filed by the FTC and the Ohio Attorney General allege that the companies generated and processed remotely created payment orders (RCPOs) or checks that allowed many unscrupulous merchants, including deceptive telemarketing schemes, to withdraw money from their victims’ bank accounts. The FTC’s Telemarketing Sales Rules (TSR) specifically prohibits the use of RCPOs in connection with telemarketing sales. [Editor's note: Federal Reserve Regulation CC refers to RCPOs as "remotely created checks."]


Vietnam rep of Workers' Party of Korea designated

The Treasury Department announced yesterday that OFAC has designated a North Korean individual operating from Vietnam, Kim Su Il, for his ties to the Workers’ Party of Korea (WPK). Kim Su Il is also an employee of the Munitions Industry Department, a WPK subordinate that is United Nations (UN)- and U.S.-designated for its involvement in key aspects of North Korea’s missile program, which is subject to a range of U.S. sanctions restrictions. This action reflects continued enforcement of UN and U.S. sanctions. For identification information, see BankersOnline's OFAC Update


Mali-related executive order issued

OFAC posted a notice on Friday that the president has issued a new executive order, "Blocking Property and Suspending Entry of Certain Persons Contributing to the Situation In Mali."

Update: Published at 84 FR 37055 as E.O. 13882 on 7/30/2019.


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