11/14/2011
Reg E vs Reg O? The President of our bank is on a joint account with his teenage son. The account is marked as a Reg O account in the system. The teenage son has a debit card. He did not opt in for Reg. E. The son used his debit card for fuel and created an overdraft in the account. As a Reg O account, we would have to charge an OD fee. Since the son did not opt in for Reg E, we cannot charge a fee. Which one should we violate? How do we prevent this from happening again?
10/17/2011
Recently, we did an audit of Reg. O and the board has decided to implement a pre-authorized transfer of funds to cover overdrafts over $1,000. It is a very rare circumstance that causes one of our directors to overdraw their personal account. I can not find any guidance for what type of language needs to exist in the pre-authorized transfer. Please advise.
09/12/2011
During our annual internal audit of Reg. O, we discovered that overdraft fees are being waived for the board of directors. The overdrafts were under $1,000 and the account was not consecutively overdrawn for 5 days or more. At first, we felt that we could defend this by proving that our BOD is in similar circumstances as other depositors that we waive overdraft fees for. Management has decided that proving these "similar circumstances" may not be a risk we want to take with examiners. How should we handle this violation? Should we have the board members that are in violation pay the fees that were waived? Or should we implement training and awareness to ensure this violation does not happen again?
08/29/2011
A director (reg o) has a loan. Can the due date be extended each year without board approval with the same interest rate? This loan started in 2007 and each year the due date has been changed for another year. The loan is an unsecured loan for 25,000. Also, this director has another unsecured loan for 5,000 with the same thing happening.
08/15/2011
I have a customer who is the sole member of a corporation. He has been told by his attorney and accountant that he can cash a check made payable to the corporation. This is not our bank's practice. Can you direct me to something printable to give to my customer stating guidelines for cashing business checks?
07/04/2011
Do ACH lines associated with accounts owned by directors require reporting under Reg O as extensions of credit?
04/25/2011
What are the responsibilities for an In-House Auditor? Our auditor considers daily activity of the employees as an auditor responsibility.
04/18/2011
Do we have to have job specific training for BSA?
01/03/2011
We regularly monitor personal accounts of our directors and EOs. Is a related interest account defined as any account on which an EO or director has signatory rights? If a director is the primary owner of a business account, is it necessary for us to monitor the account for Reg O overdrafts? If a director is an authorized signer of a business account, is it necessary for us to monitor the account for Reg O overdrafts? If a director is a minority of an account, is it necessary for us to monitor the account for Reg O overdrafts? The Reg states a member bank is to charge the same fee any other customer of the bank would pay in similar circumstances. At our institution, if a customer has an overdraft and makes a deposit/transfer the same day, we generally waive the fee as a courtesy due to the balances they carry with us. Is this a violation of Reg O to treat EO and directors the same as we would the above client?
01/03/2011
Are directors required to receive annual training on Reg CC?