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Latest Compliance - Directors Topics

Advisory Director Liability

06/16/2008

How much liability do advisory directors have compared to the potential liability of directors?

Security Officer Reporting Structure

03/31/2008

I plan to include a recommendation in my annual report to change the current reporting structure for the Security Officer. Presently, I report to the VP of Retail Operations. I am seeking references to cite that advise the bank security reporting structure should be in other areas such a finance, risk, administration, but not through retail because of the apparent potential for downward influences and the need for independence.

BSA Board Training

12/10/2007

How in-depth should the training be for the Board of Directors in BSA? Is a general overview of BSA/AML/CIP along with an overview of the procedures in place sufficient for compliance?

BOD's Loan Modification

11/26/2007

Please clarify if the following transaction would be considered a refinance or a purchase. We have a newly elected Director on our board. His home loan was approved before he became a director. After he was appointed to the board, his home loan was modified. Should this have come before the board to obtain approval?

Reg O - Waiving the 1% Origination Fee

10/15/2007

The chairman of our Board of Directors is buying a house. Can we waive the 1% origination fee without being in violation of Reg O? We do on occasion waive this fee for other customers in order to compete for a loan.

Reg O - Bancshares as Collateral

09/03/2007

I've been told that when 100% of a bank stock is issued by a holding company and it is not publicly traded, the reporting requirements under section 215.10 of Reg O do not apply should an executive officer or director pledge the bancshares as collateral for a loan at another financial institution. I cannot substantiate this claim. Have you ever heard of this?

USA PATRIOT Act Confusion

07/09/2007

We are having a misunderstanding at my financial institution about the USA PATRIOT Act. We were first opening corporate accounts and gathering identification documentation and social security numbers on all the signers on corporate accounts. We were then instructed that it was unnecessary to obtain this information on the signers. Then about a year later we were instructed that the USA PATRIOT Act does require us to get this information. Does BSA or the PATRIOT Act require financial institutions to get ID for signers on corporate accounts as of 2007? If it does not, where can I find this information?

Would Customer’s Regularity Warrant a SAR?

05/21/2007

I have been newly appointed to a bank Board of Directors and have little banking knowledge. I have been approached by one of our tellers with a concern about CTRs. It seems that on a regular basis (couple times a month) a customer comes into the bank with two checks around $6500.00 each and has them cashed. One is in his name the other is in his father’s name. Each time he is alone and walks out of the bank with around $13,500.00 cash. My teller is afraid that this is a BSA violation. Is this a violation? Would this at least warrant a Suspicious Activity Report?

Commercial Loan with Guarantors

04/16/2007

On a commercial loan with guarantors, why is it best to process the loan using guaranty agreements instead of processing as co-signers or co-borrowers? We have loan officers that insist on processing the loan with the guarantor as a co-signer.

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Credit information and privacy

02/02/2025

Can a bank or CU president perform an asset search (or any kind of search) using bank resources, on someone with just a name? For example, information on where I've worked before, how much I'm worth, etc. I ask because I live close to a banker who I do not bank with that knows way too much about me. I'm not on any social media and am a very private person.

Admin fee on consumer loans

02/02/2025

We do consumer loans consisting of auto, unsecured, and CD secured loans, and we charge an administration fee of $25.00. This fee is listed in our third-party document generation and processing system as an administrative fee that affects the APR (in other words, a finance charge). I wonder if this is acceptable for a consumer loan.

Paper CDs - Lost

01/26/2025

When we issue a certificate of deposit we inform our customers that they will need to present the actual certificate to make any withdrawal or close the account. If they are unable to present the certificate, we require a loss indemnity form but only require one of the account holders to sign it, unless the account agreement stipulates otherwise. Should we have all the account holders sign the lost indemnity form regardless? We were also curious if anyone charges a fee for this processing?

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