We Hope It Filters Down

I try to attend as many banking conferences as I can during the year for several reasons - to keep up with current issues; to network with bankers and regulators; and to learn what is "hot" and most important to our readers.

You always hope the program will be just loaded with information, especially when there are government regulators and examiners involved. There are some who really have a handle on what the bankers need. And there are some that unfortunately are evidently too far away from reality to be of help. There were both at the ABA/ABA conference last month.

William Fox gave the impression that he's really "in touch" with what bankers have been dealing with. Many BANKERS' HOTLINE subscribers take the time to offer feedback on problems to this office, to COMPLIANCE ACTION, and to contacts such as John Byrne at ABA. The importance of that feedback and others like it became evident in the content of his presentation.

On the other hand, a speaker from one of the agencies managed to get a big laugh (much to his dismay) when he responded to a question on how long a bank should wait for a MSB to register with FinCEN before they close them out. He opined that the bank should not wait longer than a week! If you've had any dealings with Money Service Businesses and the new requirement that they register with FinCEN if they are one of the ones that must, you know how far off the mark that estimate is.

Another speaker from an agency created dismay when asked about checking a name against the OFAC list after the account is opened by responding that at that point the financial institution is already in violation. Several large banks commented that they consistently check names the next day and have never been written up for it - which is not to say they won't now!!!

It was encouraging to hear many of the regulators and examiners present express the desire to work with the bankers to clear up misunderstandings, and to make sense out of the myriad of regulations and interpretations. Indeed, the American Bankers Association presented William Fox, Director of FinCEN, with a plaque declaring him the ABA Financial Industry Partner of the Year in recognition of his willingness to work with the other regulatory agencies to provide help and foster cooperation with the bankers.

We can only hope this message filters down to the examiner who walks in your door.

Copyright © 2004 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 14, No. 9, 11/04