Bankers Compliance Task Force Current News Archive - January 2006

January 31, 2006  The Federal Deposit Insurance Corporation (FDIC) has released a new expanded version of its Electronic Deposit Insurance Estimator, also known as "Online EDIE," for use by bank customers. With this new version, users can estimate insurance coverage for a wider range of account types. Bank customers can access the new Online EDIE on the FDIC's Web site at http://www.fdic.gov/.

January 30, 2006  William J. Fox announced today that he has resigned his position as Director of the Financial Crimes Enforcement Network and accepted a position with Bank of America as a Senior Compliance Executive for financial crimes. His last day as Director will be February 3, 2006. http://www.fincen.gov/

January 27, 2006  The Federal Financial Institutions Examination Council (FFIEC) has approved revisions to the reporting requirements for the Reports of Condition and Income (Call Report) that will be phased in over the next two years. The FFIEC is providing advance notification to assist in planning for these changes. The U.S. Office of Management and Budget must approve these changes before they become final. http://www.ffiec.gov/

January 27, 2006  In response to the growing number of fraudulent money orders, the U.S. Postal Service has launched a positive pay solution which enable financial institutions to verify U.S. Postal Service money orders.   http://www.frbservices.org/

January 27, 2006  Treasury has released a DVD created to inform consumers about identity theft is, how they can protect themselves, and what they should do if they become a victim.
http://www.treas.gov/

January 26, 2006  Identity theft continues to be one of the fastest growing crimes in the United States, and has ranked as one of the top consumer concerns for the past several years. The FDIC has produced a multimedia presentation to help consumers protect themselves from identity theft. The presentation provides information on steps consumers should take to secure their computer and protect themselves from identity theft, as well as actions consumers should take if they become a victim of identity theft. Financial institutions are encouraged to make the link available to their customers from their websites.   http://www.fdic.gov/

January 25, 2006  NCUA has announced that the state chartered Gulfport CBC Credit Union of Gulfport, Mississippi has been placed into conservatorship by the State of Mississippi Department of Banking and Consumer Finance.  http://www.ncua.gov/

January 25, 2006  FinCEN has issued a summary of regulatory releases that they issue pursuant to its authority as the administrator of the Bank Secrecy Act.  Information also includes an outline of the effect of the various releases on financial institutions subject to the regulatory provision at issue.  http://www.fincen.gov/

January 24, 2006  The FRB has released a Legal Interpretation permitting a BHC to include in its tier 1 capital, trust preferred securities that mandatorily convert into non-cumulative perpetual preferred securities on the same terms and subject to the same quantitative limit as trust preferred securities that mandatorily convert into common stock. http://www.federalreserve.gov/

January 23, 2006   The Winter 2006 issue of Money Smart News has been published by the FDIC and contains articles regarding training tips, financial education for seniors, success stories and partner news.

January 20, 2006   The Federal Banking Agencies have issued guidance to confirm that under the Bank Secrecy Act and its implementing regulations: (1) a U.S. branch or agency of a foreign bank may disclose a Suspicious Activity Report to its head office outside the United States; and (2) a U.S. bank or savings association ("depository institution") may disclose a Suspicious Activity Report to controlling companies whether domestic or foreign. This guidance does not address the applicability of any other Federal or state laws. The Bank Secrecy Act prohibits the filer of a Suspicious Activity Report from notifying any person involved in the suspicious transaction that the transaction has been reported. http://www.fincen.gov/>

January 18, 2006   The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in February 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 February, use the rates posted on January 13th since January 15th fell a the weekend. http://www.federalreserve.gov/

January 13, 2006   The federal bank and thrift regulatory agencies are seeking comment on proposed interagency guidance relating to sound risk-management practices for concentrations in commercial real estate (CRE) lending. Comments are due by March 14, 2006. http://www.fdic.gov/

January 13, 2006   Acting through an interim final rule, OFAC has replaced January 2003 proposed Enforcement Guidelines with new enforcement procedures applicable to banks. These procedures recognize "that each banking institution's situation is different and that its compliance program should be tailored to its unique circumstances" and builds upon the compliance approach described in the Interagency BSA/AML Manual's section on OFAC. The new procedures outline OFAC's oversight process and frequency, identify factors affecting its decisions to take administrative action and contain risk matrices and description of sound OFAC compliance program components. The procedures are effective in 30 days, but the agency invites comment for 60 days. (Comments due March 13, 2006) http://www.aba.com/

January 13, 2006   The United States Government today released the inter-agency U.S. Money Laundering Threat Assessment (MLTA), the first government-wide analysis of its kind, which investigates money laundering vulnerabilities across a spectrum of techniques used by criminals. Each chapter of the MLTA profiles the characteristics of a specific method of money laundering, outlining the current legal and regulatory landscape and presenting known patterns of abuse, geographical concentrations, and real-world case studies. http://www.ustreas.gov/

January 12, 2006   The U.S. Mint began shipping 80 million of the new 5-cent coins today, to the 12 regional Federal Reserve Banks. This is the first of an estimated 1 billion new nickels which will be put into circulation in 2006. http://www.thejacksonchannel.com/

January 12, 2006   OFAC has announced New Economic Sanctions Enforcement Procedures for banking institutions regulated by FFIEC- member supervisory agencies. The interim final rule goes into effect for enforcement cases involving banking institutions in 30 days. http://frwebgate4.access.gpo.gov/

January 12, 2006   OTS has released the thrift industry charge-off rates by asset types for the Third Quarter of 2005. http://www.ots.treas.gov/

January 11, 2006   Comptroller of the Currency John C. Dugan issued a statement correcting a fundamental misunderstanding of the effect of three recent OCC interpretive letters dealing with the ability of banks to hold real estate used for the banks’ business and to provide financing involving an indirect interest in real estate. http://www.occ.treas.gov/

January 10, 2006   The FDIC has released it's Winter 2005 State Profiles which provide a quarterly summary of state banking and economic conditions. http://www.fdic.gov/

January 10, 2006   The FDIC has published two special how-to guides to money management for selected age groups – one for senior citizens, the other for young adults. The FDIC is encouraging financial institutions to make the information in the guides widely available. http://www.fdic.gov/

January 10, 2006   The FDIC has issued a press release address the effects of Hurricanes Katrina and Rita on local banking sectors and housing markets. http://www.fdic.gov/

January 10, 2006   The federal bank and thrift regulatory agencies have issued for comment proposed guidance on sound risk management practices for concentrations in commercial real estate lending. http://www.occ.treas.gov/

January 6, 2006   The OCC has issued an updated Licensing Manual.  The revised "Investment in Bank Premises" booklet amends the Accounting Depreciation discussion clarifying wording about accumulated depreciation. http://www.occ.treas.gov/

January 5, 2006   The FDIC has issued the Winter 2005 edition of FDIC Outlook which provides a quarterly analysis of current national and regional trends that may affect the risk exposure of insured depository institutions. http://www.fdic.gov/

January 4, 2006   FinCEN has issued final rules implementing the requirements of section 312 of the USA Patriot Act. http://www.fincen.gov/

January 4, 2006   The OCC announced a $6.25 million civil money penalty against ABN-Amro Mortgage Group (AAMG), a subsidiary of LaSalle Bank Midwest, N.A.  This action is a part of a $16.85 million settlement by AAMG that also includes restitution payments.  The action focused on an investigation of AAMG's FHA loan underwriting practices and improprieties in its FHA loan processing. http://www.occ.treas.gov/

January 3, 2006   The FRB has announced final amendments to Regulation E regarding the responsibilities of parties involved in electronic check conversion transactions and the requirement that consumers receive written notification in advance of these transactions. An interim final rule was also adopted that extended coverage to payroll card accounts. Revisions to the official staff commentary provide guidance on preauthorized transfers from consumers' accounts, error resolution, and disclosures at ATMs. http://www.federalreserve.gov/

January 1, 2006   FinCEN has issued an administrative ruling addressing AML programs for dealers in precious metals, stones or jewels. http://www.fincen.gov/