Privately owned ATMs - i.e. ATMs that are not owned by a bank - is a topic that seems to be gaining traction with examiners during BSA exams. Therefore, it is important for financial institutions to understand their requirements in regards to customers who operate privately owned ATMs. This article takes a look at what is a privately owned ATM is, what risks are associated with them, and how financial institutions can manage privately owned ATM relationships.

May 24
May 24 HMDA Relief for Community Banks and Credit Unions

Adam Witmer

HMDA, Regulatory Update

After passing through Congress on Tuesday, President Trump today signed into law S.2155, known as the Economic Growth, Regulatory Relief, and Consumer Protection Act. This banking reform bill, introduced by Idaho Sen. Mike Crapo in November of 2017, does a number of things to undo the burdens placed on smaller financial institutions by the Dodd-Frank Act. One of those things relates to the new fields that were required under the Home Mortgage Disclosure Act (HMDA) beginning on January 1, 2018.

May 24
May 24 Regulatory Relief for Community Banks and Credit Unions

Adam Witmer

Regulatory Update

Earlier today, President Trump signed into law a major rollback of regulations. S.2155, known as the Economic Growth, Regulatory Relief, and Consumer Protection Act, was passed by the House on Tuesday, and passed by the Senate over two months ago. This banking reform bill, introduced by Idaho Sen. Mike Crapo in November of 2017, does a number of things to undo the burdens placed on smaller financial institutions by the Dodd-Frank Act.

May 24
May 24 New SCRA Notice

Adam Witmer

Regulatory Update

At the end of the first quarter of 2018, HUD posted a revised SCRA notice which is sent to all delinquent mortgage borrowers. This revised notice is the one that must be delivered between the 32nd and 45th day after a loan goes into default. The recent revision was made to reflect the extended protection from foreclosure which was adopted as part of the National Defense Authorization Act of 2018.

May 21
May 21 FinCEN Delays UBO Requirements for Automatic Renewals

Adam Witmer

BSA, Regulatory Update

On May 16, 2018 - just five days after the new customer due diligence (CDD) rules requiring the identification and verification of ultimate beneficial owners (UBOs) went into effect - FinCEN issued a temporary ruling that delays parts of the new requirements for financial institutions. FinCEN’s ruling, known as FIN-2018-R002, provides a 90-day limited exception for financial institutions in regards to products and services that automatically rollover or renew, such as loan accounts and certificates of deposit (CDs), that were established before the May 11, 2018 deadline for the new rules.

May 16
May 16 How BSA Rules Apply to School Corporations: CIP, CTRs, & CDD

Adam Witmer

BSA

Years ago as a new BSA Officer, I received a call from one of our branch managers who had a customer at their desk and was needing my immediate input. The branch manager told me that the person trying to open a new deposit account with us was refusing to provider her social security number and driver’s licence information (the info our CIP policy required) as she was told that the account was exempt and she didn’t need to provide it. I asked her what type of company was opening the account and she responded by saying that it was a school.

May 15
May 15 Exam Procedures for Ultimate Beneficial Ownership Rules

Adam Witmer

BSA, Regulatory Update

On May 11, 2018, the FFIEC released new examination procedures for the recent “Customer Due Diligence Requirements for Financial Institutions.” These procedures are intended to be utilized by each regulatory agency - meaning they apply to all banks, savings and loans, savings associations, and credit unions - and will be a part of a financial institution’s BSA examination. These new procedures replace the prior procedures and financial institutions should expect examiners to utilize them in the near future.

May 7

May 7 Reporting a SAR on a Director

Adam Witmer

BSA

This BSA video discusses what a BSA Officer should do when they have filed a SAR on a Director and then are supposed to report the SAR to the Board - but the Board requires the names of SARs to be included in the Board report. Plus, Adam gives a real life example of when this became an issue.

May 3
May 3 Closing a Loan with Force Placed Flood Insurance

Adam Witmer

Flood

Flood insurance is a challenge for both consumers as well as financial institutions. The rules are complex, cumbersome, and flood insurance can be extremely expensive - so expensive, in fact, that some consumers have found it more affordable to pay for forced placed flood insurance than to get a separate flood insurance policy. While this this current trend can help to save the customer some money in the short run, it could cause some compliance challenges down the road.