Most Popular Compliance Content
Handling Deposits of MRB Staff
03/26/2023
A dispensary (Marijuana Related Business) just opened this month in town. We have two members (we are a credit union) that receive payroll from there (ACH). - Given their employer, is it illegal for them to bank with us? - Do we need to terminate our relationship with them? Our policy only states for MRB's that we would allow tier 2 and 3. Technically it is an individual, not a business though. Are we allowed to keep them? I know there are SARs we may have to file for MRB's (limited/terminated, etc.). If we keep thee depositors, do we have to file a SAR every 90 days on the individuals as long as they are employed at the dispensary? We understand there is a certain risk having them. There is really no guidance from FinCEN regarding employees of MRB's, just MRB's themselves. Any guidance would be greatly appreciated.
UDAP vs. UDAAP
03/26/2023
Where does the CFPB’s authority come in when they determine something is “Abusive”?
Frequency of High-Risk Reviews
03/26/2023
How often do we need to review our high-risk customers?
Check Return Timeline
03/19/2023
I wanted to reach out in regards to time frames that depositing banks have to respond to a check return. As with most other banks, I’m sure, we have seen an increase over the last 2 years of check fraud alternating between both altered checks and endorsement fraud. We typically try and return the item and collect for our customers the lossed funds, but most of the time our returns are denied as they are a late return. The denials that we receive though range from 2 weeks – 3 months so I wanted to reach out to see if there is a time frame that a depositing bank has to deny a returned check so we know on our end as far as giving our customers final credit for the check return?
Conflict Between Reg E and Merchant Rules
03/19/2023
A customer disputed a transaction saying that they were scammed. The bank filed the dispute through their dispute program with a well known vendor I'll refer to as V. This was on October 20. V submitted the claim to the merchant on December 12, and they responded with evidence that the customer initiated the transaction. It went into pre-arbitration and the bank did not hear anything further. At 90 days the bank closed the case with the customer being responsible because the merchant said the evidence proved it was the customer who did it. On January 30, the bank received credit from the merchant stating that there was an error and they are now returning the funds. The bank contacted V since it had been past the 90 days and were told that the merchant has 30 days once they receive the dispute, then when the bank gets the results, they have 30 days for pre-arbitration, then the merchant has 10 days to respond to that. This doesn’t to fit with Reg E time requirements. There is some confusion as to how the bank should handle this situation. They would like to return the money to the customer, but are unsure of how to proceed. What should happen in this case and was it mishandled based on Reg E and merchant rules?