08/04/2008
We are beginning to delve into the Health Savings Account (HSA) market. We currently offer this account to employees only. Both employee and employer contributions are deposited directly into the HSA. We have linked a checking account to the HSA and issued both checks and a debit card for accessibility convenience. The checking account balance is always "zero $." When either a check or debit card purchase comes through it is memo posted to the checking and the exact amount of the transaction is electronically transferred from the HSA to the checking to cover the transaction. My question is, is the HSA held to the same withdrawal restrictions in this case as any other "savings" account under Reg. D (6 transfers)? This account is both a savings and an IRA...I have not been able to get a clear answer on this.
04/07/2008
Since we cannot require employees to accept e-statements for their deposit accounts, we are trying to develop incentives that will highly encourage them to sign up for the e-delivery. Presently, employees are not charged a service charge for their accounts. Can we change this policy for existing and future employees, so they will receive an account free of charge if they use e-statements? Otherwise they will be charged the normal service charge incurred by customers without violating regulations, thus start assessing a service charge on all existing employee accounts unless they sign up for e-delivery.
01/14/2008
Is there a regulation that covers the amount of interest that can be paid on insider deposits?
12/03/2007
What is the maximum amount a bank employee can accept as a gift from a customer under the regulations?
11/12/2007
I have a very technical GLBA question. It is my understanding that if all employees of the bank are required to have deposit accounts then they are also considered a customer under GLBA. If there happened to be a breach of employee nonpublic information through the HR department, say the payroll vendor was compromised and all employees' social security numbers were released, would this not be considered a breach under GLBA and notification required to the affected customers (employees) along with notice to our regulators? Is it possible since the breach occurred through HR department and was of employees' nonpublic information that it is not defined as a breach under GLBA?
10/22/2007
If a member sends in a check to pay his loan and on the back of the check he writes that accepting the check constitutes payment in full, what do we do with the check if the payoff is insufficient?
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.
07/16/2007
Bank A and Mortgage Company B are owned by the same holding company. Bank A has an incentive plan where the employee of Bank A can make a referral to B and A's employee will be paid for that referral. It is paid from A's payroll account, however, A gets the money from the salary of B's originator. There are no affiliated disclosures given at any time during this process. I have read Sections 3500.14 and 15, and have thought so much that I can't think straight about the subject. What are your thoughts?
06/04/2007
One of our branches has a customer (a builder) writing large checks to their employees on a weekly basis ($5k-$7k). The builder comes in with the employee to cash the check. The employee endorses first, then the builder endorses and cashes the check. The builder is a known customer, so the tellers do not get identification on him and since he endorses after the payee they are not getting the payee's identification. They are, however, checking the payee/employee against OFAC. Bank policy states that we check OFAC on all non-customer payees over $1000 and record identification on non-customers and payees over $3000. I am getting a match on two of the three employees. I am 90% sure that it is a false positive, but I cannot confirm or deny it is a valid hit unless I can compare their identification information to the hit. The branches administrator was notified that the branch is not following bank policy and that identification needs to be obtained on the payees. The branch defends their actions stating that, technically, they are not making an exception since the employee and builder are presenting on-us checks we are able to verify funds and also that the last endorser is vouching for the non-customer. I understand their concern because it is technically true, but as the Compliance Officer I also understand that, per OFAC, banks must block transactions that are by or on behalf of a blocked individual or entity. If this branch continues to willfully ignore the intent of the customer, which is to give money to this employee, we will end up with severe penalties if the payee is found to be a blocked individual. This is a risk I would rather the bank not take. Can you shed some light on the subject?
05/21/2007
What is our liability if we issue a debit card to a business customer? If our card has a MasterCard logo, do we have to go by MasterCard rules? Are we in violation of any Regulation if we disclose to the customer that they will take all the liability?