COCC and ATTUS work together to bring next generation technology to community
banks & credit unions. WatchDOG® Pro IAT module offers on
efficient solution for their BSA, USA PATRIOT Act and NACHA IAT Compliance. Learn
more...
 Congratulations
to last quarter's winner, Betty Hamrick, First Avenue National
Bank in Ocala, FL. Betty won an iPod nano just for sharing
her opinion. And, you can too! Just
complete our short survey & you'll be entered in our iPod drawing. Check
back monthly to see if you're the next winner.
|
|
Are Conditions Ripe for a Surge in BSA/AML Enforcement Actions?
Reading the Signs and Taking Cover
by Lori Moore, Director of Compliance
Sebastian Junger’s 1997 book, The Perfect Storm, is a cautionary, real-life
tale of what happens when separate, yet related, events combine to create a perilous
problem for those in its wake. In October 1991, three different weather systems,
all potentially troublesome on their own, consolidated into one much fiercer and
more massive storm that earned it its famous name. After the last two years,
it’s understandable that financial institutions would like to breathe a sigh
of relief as the credit crisis abates and the economy begins to recover. Unfortunately,
now is not the time to rest. There are several forces at work that have the
potential to create a perfect storm of their own, a surge in the number of Bank
Secrecy Act (BSA) and Anti-Money Laundering (AML) related enforcement actions (EAs)
by federal regulators.
Compare and Contrast: Reg E and NACHA Rules
The Electronic Funds Transfer Act, implemented by Regulation E, establishes
the basic rights, liabilities and responsibilities of consumers who use electronic
fund transfer (EFT) services and of the financial institutions that offer these
services. It is one of the most complex consumer compliance laws in effect,
and the introduction of new payment products has further blurred the lines of applicability
and liability. This webinar will clear the confusion as we discuss the requirements
set forth under Reg E, and how compliance compares and often conflicts with other
legal and contractual obligations such as the Uniform Commercial Code, NACHA Rules
and card network rules.
3/25/2010 3:00PM ET to 4:00PM ET
 With
regards to voice response transfers from savings to checking, if that is subject
to Regulation E, then technically that customer should receive a savings account
statement each month when a transfer is made, correct?
Answer: For transfers between accounts held by the same
consumer at the same financial institution, documenting the transfer on a periodic
statement for one of the two accounts satisfies the periodic statement requirement.
Therefore, provided your institution is sending monthly statements for checking
accounts, the interim savings statement would not be necessary. This, as well as
other exceptions to the periodic statement requirements can be found under section
205.9 (C).
Got a question on a tricky regulation?
We want to hear from you! Submit your question and an expert will
answer it in a future issue.
ATM Skimming: 8 Tips to Fight Fraud
Banking Institution's Must Take Preventative Measures
By Linda McGlasson, BankInfoSecurity.com
Many financial institutions don't invest in real-time fraud monitoring of PIN-based
transactions, Urban says, because traditionally risk has been lower. His advice:
Institutions need to take a hard look at where they're going to spend monitoring
money. "By now I mean getting ahead of the curve before the fraud starts to
happen, and get PIN-based card transaction monitoring in place."
Criminals placing skimming devices will target an attack for a day, a weekend, or
a short period of time. They usually go to other ATMs of the same model/make to
attack, that fit the look of the skimming device. They are much more sophisticated
than previous skimming devices, he explains. "They also use the same paint
coatings, so they are getting access to that information somewhere -- those compounds
that generally aren't available at a local hardware store. You can't go in and order
ATM gun metal grey paint. There is a real industry around the creation of these
ATM skimming devices."
March 19th, Are You Ready for
NACHA Amendments?
NACHA.org
Authorization and Returns
Approved May 1, 2009; Effective March 19, 2010.
The Authorization and Returns rule will enhance the quality of transactions in the
ACH Network by more clearly defining an Originator’s obligations for obtaining
a consumer’s authorization, and by improving processes related to the return
of debits that Receivers claim are unauthorized. Specifically, these changes clarify
that a consumer debit authorization must be clear and readily understandable in
its terms, and that any purported authorization that does not meet these criteria
is not a valid authorization under the Rules. The Rule also provides greater definition
and clarity with respect to an RDFI’s obligations for obtaining and providing
a consumer’s written statement that a debit was not authorized, improving
the efficiency with which unauthorized debits are handled by DFIs.
Stop Payments and Regulation E
Approved May 1, 2009; Effective: March 19, 2010.
The Stop Payments Rule will re-align the NACHA Operating Rules with the requirements
of the Federal Reserve Board’s Regulation E (“Reg E”). As the
interpretation of Reg E has changed over time, there has been a divergence between
the Rules and Reg E with respect to the intent of, and processing requirements for,
stop payment orders on ACH debits. These differences have become significant enough
to result in the potential for RDFIs to have difficulty reconciling their obligations
under both the Rules and Reg E. This ballot includes specific modifications to Rules
language governing stop payments that re-align the Rules and Reg E.
Don't Let Halos and Horns Blur Your Expectations
By Steve Roesler, AllThingsWorkplace.com
What do your company's talent conversations sound like?
If you've spent more than a few minutes managing, succession planning, or doing
a performance review, you know that total talent conversations can morph into a
bias founded upon a single experience.
Here's what I mean.
|
