Most Popular Compliance Content
HSAs and Balance Transfers
09/15/2024
Are banks held accountable when customers transfer money from HSA accounts to personal accounts or LLC accounts?
CD Renewal Rate Disclosures
09/15/2024
I have a question about a CD special. The bank's rate sheet lists a 12-month CD as well as a 12-month CD Special that has a considerably higher interest rate/APY than the regular base CD. The bank also allows negotiation and will pay a higher rate to keep business. For the "special" and any other negotiated rate, the rate is only in effect for the initial term and at maturity will renew at the 12-month non-special rate. I'm looking at 1030.5; Comment 5(a)(1)-1 and I am thinking that advance notice would be required since the terms are changing upon the occurrence of an event (renewal). There is nothing on the TIS disclosing that the initial term is a promotional period and that the CD will renew at the lower non-special rate in effect. Am I thinking about this correctly?
Risks of opening account for trust
09/08/2024
We have a client wishing to open a checking account through an irrevocable trust for the purpose of funding a self-directed 401K. The checking account would collect funds and then under the trust be invested as outlined by the trustee. What liability would the bank have if we opened the account?
Right of offset
09/08/2024
Is a letter to the borrower required when right of offset is used?
Fraud and FedNow payments
09/08/2024
We are considering allowing customers to use FedNow to receive instant wires. The concern is our customer receives the wire and spends the funds and a day, two, or more go by and we receive a claim to return the funds due to fraud. Which bank would have liability for a fraudulent wire transfer, the sending bank or the receiving bank? Can you provide the references that I should be looking into (UCC, Regulations, etc.)?