Bankers Compliance Task Force Current News Archive - October 2006

October 31, 2006 - The FinCEN, FDIC, and the New York State Banking Department (NYSBD) have announced the assessment of civil money penalties of $12 million against Israel Discount Bank of New York for violations of federal and state anti-money laundering laws and regulations. This is in addition to the $8.5 million already paid to the New York District Attorney's Office pursuant to an agreement reached with the bank in December 2005. Israel Discount Bank of New York, without admitting or denying the allegations, consented to payment of the civil money penalties.  http://www.fincen.gov/joint_release_10312006.html

October 30, 2006 - FDIC Chairman Sheila C. Bair announced today that Sandra L. Thompson has been named Director of the Federal Deposit Insurance Corporation's Division of Supervision and Consumer Protection (DSC). In addition, Christopher J. Spoth has been named Senior Deputy Director, Supervisory Examinations; and John Lane will assume leadership of a newly created unit dedicated to large, complex financial institutions.  http://www.fdic.gov/news/news/press/2006/pr06097.html

October 30, 2006 - Federal Reserve Financial Services has announced new FedReceipt routing numbers. Effective the business day of November 6, 2006, the Reserve Banks will modify the credit availability and pricing schedule on the FedReceipt routing numbers for FedForward deposits.  http://www.frbservices.org/Retail/pdf/C21AvailabilityChangesFedReceipt110606.pdf

October 27, 2006 - The OTS has updated the March 2006 TFR Instruction Manual with the addition of data through December 2006.  http://www.ots.treas.gov/docs/4/4210041.pdf

October 27, 2006 - NCUA is amending its rules to implement amendments to the Federal Credit Union Act (FCU Act) made by the Financial Services Regulatory Relief Act of 2006 (Reg Relief Act). The interim final rule revises the maturity limit in the general lending rule and permits Federal credit unions to provide certain, limited financial services to nonmembers within their fields of membership.  http://www.bankersonline.com/topstory/fedreg/71FRE6-17835.txt

October 27, 2006 - NCUA is issuing a final rule to describe in greater detail the requirements for reporting and filing a Suspicious Activity Report (SAR) and to address prompt notification of the board of directors of SAR filings, the confidentiality of reports, and liability protection. NCUA also is changing the heading for this part so it more accurately
describes its scope. NCUA seeks to enhance credit union compliance with SAR reporting requirements by providing greater detail in its rule on the thresholds and procedures for filing a SAR.  http://www.bankersonline.com/topstory/fedreg/71FRE6-17838.txt

October 26, 2006 - Treasury, the FRB and the U.S. Secret Service have issued their third collaborative report on the use and counterfeiting of U.S. currency abroad that updates the first reports issued in 2000 and 2003.
http://www.treas.gov/press/releases/reports/the%20use%20and%20counterfeiting%20of%20u.s.%20currency%20abroad%20%20part%203%20september2006.pdf

October 25, 2006 - The OCC has announced new electronic interpretations and actions for October 2006.  http://www.occ.treas.gov/interp/oct06/intoct06.htm

October 25, 2006 - The FDIC has announce the availability of the Fall 2006 edition of Money Smart News.  http://www.fdic.gov/consumers/consumer/moneysmart/newsletter/fall2006/index.html

October 24, 2006 - Mark Levonian has been named Senior Deputy Comptroller for International and Economic Affairs, replacing Jeffrey A. Brown, who is retiring from government service. http://www.occ.treas.gov/toolkit/newsrelease.aspx?&Doc=T99VF88O.xml

October 24, 2006 - The OCC has advised national banks that they can begin taking advantage of increased limits for public welfare investments.  The Financial Services Regulatory Relief Act of 2006 increased the limit on public welfare investments, commonly known as Part 24 investments, from 10 to 15 percent of a national bank’s capital and surplus.  While national banks generally can make public welfare investments up to 5 percent of the bank’s capital and surplus without prior OCC approval, the new rules allow them to invest an additional 10 percent (15 percent total) if the OCC determines that additional investment will not pose a risk to the deposit insurance fund and that the lender is not undercapitalized.  http://www.occ.treas.gov/toolkit/newsrelease.aspx?&Doc=Q1TC43T.xml

October 20, 2006 - The following updated deposit insurance resources are now available in Korean and Chinese: Insuring Your Deposits, a consumer brochure that provides a basic overview of FDIC deposit insurance coverage, and Your Insured Deposits, a consumer brochure that provides a comprehensive explanation of the FDIC's deposit insurance coverage rules. Both publications have been revised to reflect the increase in FDIC insurance coverage to $250,000 for certain retirement accounts, which took effect on April 1, 2006. http://www.fdic.gov/news/news/financial/2006/fil06094.html

October 20, 2006 - The OCC released a list of CRA performance evaluations that became public during the period of September 15, 2006 through October 14, 2006.  Of the 25 evaluations made public this month, 6 were outstanding, 19 were satisfactory.  None were needs to improve.  None were substantial noncompliance. http://www.occ.treas.gov/toolkit/newsrelease.aspx?&Doc=DHE67POM.xml

October 19, 2006 -  The FDIC has received reports by businesses and consumers of a phishing e-mail that has the appearance of being sent from the FDIC. This phishing e-mail, similar to that sent on September 29th, appears to be from the FDIC and ask recipients to click on a hyperlink titled "Take the Corrective Action – Implement the LinkBank System." The fraudulent e-mails are purportedly from "Russell A. Rau, Assistant Inspector General for Audits." The e-mails typically include a "Subject" line that states: "Compliance Examination for [recipient's name inserted]."  However, this is a new variation that includes a new and more dangerous hyperlink. When accessed, the hyperlink downloads an executable file to your computer. FDIC is currently analyzing the executable file; however, it is likely installing a keylogger or similar piece of malicious software. DO NOT click on the link provided in the phishing e-mail.   http://www.fdic.gov/consumers/consumer/alerts/index.html

October 18, 2006 - The FDIC Board of Directors has approved the attached final rule to implement the One-Time Assessment Credit, as required by the Federal Deposit Insurance Reform Act of 2005.   Under the final rule, eligible institutions will share in an aggregated one-time deposit insurance assessment credit of $4,707,580,238.19. The final rule takes effect on November 17, 2006.  http://www.fdic.gov/news/news/financial/2006/fil06093.html

October 18, 2006 - The Federal Reserve Board has announced the annual indexing of the low reserve tranche and of the reserve requirement exemption amount for 2007. These amounts are used in the calculation of reserve requirements of depository institutions. The Board also announced the annual indexing of the nonexempt deposit cutoff level and the reduced reporting limit that will be used to determine deposit reporting panels effective 2007.   http://www.federalreserve.gov/boarddocs/press/bcreg/2006/20061018/default.htm

October 18, 2006 - The OCC released the twelfth annual Survey of Credit Underwriting Practices and reported that competitive pressures have led to a third consecutive year of eased commercial and retail credit underwriting standards. http://www.occ.treas.gov/toolkit/newsrelease.aspx?Doc=HMN5BE1G.xml  

October 17, 2006 - The Federal Reserve has posted the new reference rates used to determine if loans for which applications are received in November 2006 will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as the loan. To make the calculation, use the yield in effect on the 15th of the month that precedes the month the application is received. For November, use the rates posted on October 13th since October 15th fell on a weekend. http://www.federalreserve.gov/releases/h15/Current/

October 17, 2006 - Each year, many Federal Reserve Bank customers request new currency for the holidays. The Federal Reserve Banks have a general policy of filling orders with fit currency before issuing new currency. However, during the two-week period beginning Monday, November 6, 2006 (first available shipping date) and ending Friday, November 17, 2006 (last available shipping date), Federal Reserve Cash offices will fulfill customers' requests for new currency for the holidays. Please note that new currency will be limited to supplies on hand. http://www.frbservices.org/Cash/index.html

October 16, 2006 - The Federal Reserve Financial Services has published the October issue of FedFlash containing articles on such topics as consolidation of ACH claims functions, new currency available for 2006 holiday season, changes to the FedPayments Manager application, new George Washington $1 coin to be released, and additional FedReceipt routing numbers to be released. http://www.frbservices.org/FedFlash/2006/101506/FedFlash101506.pdf

October 13, 2006 - The retirement account bulletin entitled "What You Should Know About Higher FDIC Coverage for Retirement Accounts" has been revised by the FDIC. http://www.fdic.gov/consumers/consumer/news/special/specialRevised.pdf

October 13, 2006 - The FDIC and NeighborWorks® America will be hosting an event - Gulf Coast Housing Assistance Summit - Strategies for redeveloping communities and rebuilding lives: tools you can use now! The event will be October 23-25, 2006 in New Orleans, Louisiana. During this event FDIC and NeighborWorks® America will be introducing Navigating the Road to Housing Recovery, a new step-by-step guide that features information for homeowners faced with challenging decisions related to building, rehabilitating, selling or buying homes in the wake of the hurricanes. The guide provides the need-to-know information on state housing recovery programs, common scenarios families will encounter and other important issues such as: disaster assistance programs, insurance coverage and claims process, financial resources, money management, working with a contractor and how to avoid scams. Participants will learn how they can help families, clients and employees navigate the myriad of issues to re-establish their homes. You will also have the opportunity to identify ideas, leverage resources and develop new partnerships and projects aimed at housing redevelopment in the Gulf. Breakout sessions will be held to explore new and existing resources to meet the housing challenges faced within each state. Special emphasis will be placed on meeting the needs of homeowners and employers through the development of employer-based housing assistance programs. This summit is offered free of charge; however, registration is required: https://fdic.inquisiteasp.com/surveys/VC9XAH/.

October 13, 2006 - The 2006 Summary of Deposits survey data is now available. The Summary of Deposits (SOD) contains deposit data for more than 89,000 branches/offices of FDIC-insured institutions. http://www2.fdic.gov/sod/

October 11, 2006 - Pursuant to Section 214(e) of the FACT Act, the banking agencies are required to conduct regular studies of the consumer information sharing practices by financial institutions. In addition, in accordance with the requirements of the Paperwork Reduction Act, the agencies may not conduct information collection absent OMB review. Accordingly, the agencies are requesting public comment on a proposed information collection concerning "Survey of Information sharing Practices with Affiliates." Comments are due October 30. http://www.fdic.gov/regulations/laws/federal/2006/06jointnotice831.pdf

October 9, 2006 - Prepared Remarks of Robert W. Werner, Director, the Financial Crimes Enforcement Network, before the ABA/ABA Money Laundering Enforcement Conference - http://www.fincen.gov/werner10906.pdf.

October 6, 2006 - The Office of the Comptroller of the Currency will host workshops for national community bank directors at the Astor Crowne Plaza Hotel, New Orleans, November 14-15. The workshops provide practical information that expands bank directors' skills and understanding of issues facing their banks. This year's workshops cover credit risk and compliance risk. Workshops cost $65 each. Attendees receive pre-course reading and course materials, an OCC telephone seminar CD, a community bank supervision handbook, other supervisory material, a continental breakfast and lunch. Workshops are limited to the first 50 registrants and are geared primarily to outside directors of national community banks with assets of less than $1 billion. Management directors may also find the workshop beneficial. For information or to register online, visit http://www.occ.gov/conference.htm.

October 5, 2006 - The Fall 2006 quarterly summary of state banking and economic conditions is now available. State Profiles provide a quarterly summary of state banking and economic conditions. http://www.fdic.gov/bank/analytical/stateprofile/index.html

October 4, 2004 - Treasury's Financial Crimes Enforcement Network issued guidance in the form of frequently-asked questions to help mutual funds comply with their new suspicious transaction reporting requirement. The questions address a multitude of scenarios that mutual funds may encounter in the daily course of business. A final rule published in May requires mutual funds to file Suspicious Activity Reports with FinCEN on suspected illegal activity involving transactions that occur after Oct. 31. http://www.fincen.gov/guidance_faqs_sar_10042006.pdf

October 4, 2006  - The FFIEC has posted the 2007 HMDA and CRA Edits and File Specs online and updated the previously posted 2006 data.  http://www.ffiec.gov/hmda/default.htm
 
October 3, 2006  - Bank of America Corporation (BAC) has agreed to pay $7.5 million to settle a case filed by the Manhattan District Attorney regarding the handling of foreign money services for Brazilian customers at a Manhattan Bank of America branch office.  http://www.manhattanda.org/whatsnew/index.htm
 
October 3, 2006  - The FTC has announced that its request for a temporary restraining order has been granted by a U.S. District Court and Qchex, an internet-based check creation and delivery service has agreed to halt its activities. The FTC charged that Qchex creates and sends checks drawn on any bank account identified by a Qchex customer without verifying that the customer has authority to write checks drawn on that account.  http://www.ftc.gov/os/caselist/0523155/index.htm
 
October 2, 2006  - The SEC has extended until January 15, 2007, the temporary exemption of banks, savings associations, and savings banks from the definition of "broker" under Section 3(a)(4) of the Securities Exchange Act of 1934. The exemption was repealed by Gramm-Leach-Bliley, but the SEC previously issued an interim rule extending the exemption until September 30. 2006.  http://www.sec.gov/rules/exorders/2006/34-54544.pdf
 
October 1, 2006  - Effective October 1, 2006, all FedLine Web Savings Bond customer technical support has moved from the Customer Contact Centers to the Treasury Retail Securities Sites. As part of this transition, the name "FedLine Web Savings Bond" has changed to "Savings Bonds Direct" and the Internet address (URL) has changed to www.savingsbondsdirect.gov. 
 
October 1, 2006  - FRB Financial Services has published the October 1, 2006 issue of FedFlash. Featured articles include eLearning tools available online; contaminated coin no longer accepted; holiday currency request schedule; and additional FedReceipt routing numbers.  http://www.frbservices.org/FedFlash/2006/100106/FedFlash100106.pdf