Top Stories for February 2003

FTC Receives Largest COPPA Civil Penalties to Date in Settlements with Mrs. Fields Cookies and Hershey Foods

FTC Alleges Companies' Web Sites Violated Children's Online Privacy Protection Act. Mrs. Fields Cookies and Hershey Foods Corporation have each agreed to settle Federal Trade Commission charges that their Web sites violated the Children's Online Privacy Protection Act (COPPA) Rule by collecting personal information from children without first obtaining the proper parental consent. FTC 2/28/03

FDIC FIL about OFAC Change

The Department of the Treasury's Office of Foreign Assets Control has amended its list of Specially Designated Nationals and Blocked Persons. [This was previously announced on BOL] FDIC:FIL-16-2003 2/28/03

Comptroller Hawke Discusses Basle Capital Framework in House Testimony

Comptroller of the Currency John D. Hawke, Jr., told a congressional panel that while the OCC supports the objectives of the proposed Basle II capital framework, it is important that regulators carefully consider industry comments before moving forward.OCC:NR 2003-14    Oral Statement    Testimony 2/28/03

System Quality and Volume Statistics

System Quality and Volume Statistics 2/28/03

OCC Announces New Electronic Interpretations and Actions

Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. February 2003 2/28/03

Oral Statement of Donald E. Powell, on the New Basel Accord before the Subcommittee on Domestic and International Monetary Policy, Trade

FDIC:PR-16-2003 2/28/03

FDIC Issues Second Quarter 2003 CRA Examination Schedule

The FDIC has issued the public list of institutions that it has scheduled for a Community Reinvestment Act (CRA) examination during the second quarter of 2003. This list is published pursuant to revised CRA regulations published in May 1995 that require each Federal bank and thrift regulator to publish a quarterly CRA examination schedule at least 30 days before the beginning of each quarter. AD-1-2003 2/28/03

FinCEN Releases Fifth SAR Activity Review

The Financial Crimes Enforcement Network (FinCEN) continued its examination of terrorist financing methods in the fifth issue of The SAR Activity Review – Trends, Tips and Issues just released. This latest issue of The Review looks at terrorist financing methods through Informal Value Transfer Systems (IVTS) such as hawalas, as well as through non-profit organizations. SAR Review 2/28/03

FTC Receives Largest COPPA Civil Penalties to Date in Settlements with Mrs. Fields Cookies and Hershey Foods

FTC Alleges Companies' Web Sites Violated Children's Online Privacy Protection Act. Mrs. Fields Cookies and Hershey Foods Corporation have each agreed to settle Federal Trade Commission charges that their Web sites violated the Children's Online Privacy Protection Act (COPPA) Rule by collecting personal information from children without first obtaining the proper parental consent. FTC 2/28/03

FDIC Issues Alert on Counterfeit Official Checks

Counterfeit official checks drawn on Allstate Bank, Vernon Hills, Illinois; Community Bank of Lawndale, Chicago, Illinois; and Jackson Federal Bank, Fullerton, California, are in circulation. FDIC:SA-11-2003 2/27/03

FedImage Services

FedImage Services offers you a suite of image products for the capture, archive, retrieval and delivery of check images. FedImage Services provides an image solution that delivers strategic, operational and functional advantages to sustain a competitive advantage. FedImage Services 2/27/03

Comptroller Hawke Urges Senate to Reform FDIC Insurance Fund

Comptroller of the Currency John D. Hawke, Jr., in testimony before the Senate Committee on Banking, Housing and Urban Affairs, said Congress should address a number of flaws in the deposit insurance system, including several introduced in the last two decades. OCC:NR 2003-12 2/27/03

Kay Kowitt Named Deputy Comptroller for Western District

The OCC announced that Kay E. Kowitt has been named Deputy Comptroller for the Western District. In her new assignment, Ms. Kowitt will report directly to Timothy W. Long, Senior Deputy Comptroller for Mid-Size/Community Banks. OCC:NR 2003-13 2/27/03

Gilleran Urges Senate Action on Core Deposit Insurance Reform

Office of Thrift Supervision Director James E. Gilleran urged the Senate Banking Committee to approve a core federal deposit insurance reform bill that would merge the Bank Insurance Fund and the Savings Association Insurance Fund and give the Federal Deposit Insurance Corporation flexibility in setting deposit insurance premiums. OTS 03-07 2/27/03

FDIC Consumer News

Special report on credit reports and credit scores. Consumer News 2/27/03

Consumer Balance Sheet Roundtable

Consumers: How Much Debt Is Too Much? February 28, 2003, symposium. Symposium2/27/03

Agencies Issue Advisory on Mortgage Banking Activities

Federal bank and thrift regulatory agencies jointly issued an advisory letter discussing risks related to mortgage banking activities. The letter highlights concerns and provides guidance regarding mortgage banking activities, primarily in the valuation, accounting, and hedging of mortgage servicing assets. Interagency Advisory     FRB Press Release     SR 03-4     OCC:NR 2003-09     OTS 03-06     FDIC-PR-14-2003     FIL-15-2003 2/26/03

OCC Releases CRA Evaluations For 32 National Banks

The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of January 15, 2002 through February 14, 2003. OCC:NR 2003-11     Evaluations 2/26/03

OCC Announces 13 New Enforcement Actions

The OCC announced 13 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. OCC:NR 2003-10 2/26/03

Homeland Security Information Update

Suggested guidance for developing protective measures based on the level of threat condition. FRB Press Release 2/25/03

Approval of proposal of Mizuho Financial Group, Inc.

The Federal Reserve Board announced its approval of the applications and notice under sections 3 and 4 of the Bank Holding Company Act related to the proposal by Mizuho Financial Group, Inc., Tokyo, Japan to become a bank holding company by acquiring Mizuho Holdings, Inc., also in Tokyo, and thereby indirectly acquire the U.S. banking and nonbanking subsidiaries of Mizuho Holdings. FRB Press Release 2/25/03

TT&L Reference Guide Published

Guide 2/25/03

OCC Issues Alert on Unauthorized Banking

This issuance conveys information on First Century Financial (FCF). This entity and its associated Web site: [http://www.firstcenturyfinancial.com] is not authorized to conduct the business of banking in the United States. Additionally, certain companies listed as associated with FCF are not affiliated with the organization, nor have those companies granted FCF permission to reference their names on FCF's Web site. Various sections of this site contain false or misleading information. OCC:ALERT 2003-4 2/25/03

FDIC Issues Alerts on Counterfeit Treasurer's Checks, Cashier's Check and Personal Money Orders

Counterfeit treasurer's checks, cashier's check and personal money orders drawn on Union County Savings Bank, Elizabeth, New Jersey; First National Bank of Gillette, Gillette, Wyoming; and Skagit State Bank, Burlington, Washington, respectively, are in circulation. FDIC:SA-9-2003 2/25/03

FDIC FIL about OFAC Change

The Department of the Treasury's Office of Foreign Assets Control has amended its list of Specially Designated Nationals and Blocked Persons. [This was previously announced on BOL] FDIC:FIL-14-2003 2/25/03

Amendments to Reg B

Read the amendments to Reg B. FRB Press Release 2/24/03

FinCEN Issues Proposed Rule on Anti-Money Laundering Programs for Businesses Engaged in Vehicle Sales

The term ``financial institution'' is defined to include a ``business engaged in vehicle sales, including automobile, airplane,
and boat sales. FinCEN is issuing this advance notice of proposed rulemaking (ANPRM) to solicit public comments on a wide range of questions pertaining to these requirements, including the money laundering risks that are posed by these businesses, whether these businesses should be subject to these requirements, and if so, how the requirements should be structured. 68FR8568 (txt) 68FR8568 (pdf) 2/24/03

FinCEN Issued Proposed Rule to Define "Travel Agent" with respect to the USA PATRIOT Act

FinCEN is in the process of implementing the requirements delegated to it under the USA PATRIOT Act of 2001, in particular the requirements of the Act that require financial institutions to establish anti-money laundering compliance and customer identification programs. The term ``financial institution'' is defined to include a ``travel agency.'' 68FR8571 (txt) 68FR8571 (pdf) 2/24/03

OCC Issues Guidelines to National Banks to Guard Against Abusive Lending Practices

The OCC issued two releases establishing nationwide guidance to guard against predatory lending practices among institutions it supervises. Concurrently, it published for comment a request for an opinion that a Georgia law concerning predatory lending is preempted insofar as it might apply to national banks. OCC:NR 2003- 08,     Q&A's    
Advisory Letter 2003-03     Advisory Letter 2003-02     Preemption letter 2/24/03

OCC Issues Alert on Counterfeit Financial Instruments: Counterfeit Cashier's Checks

This issuance is notice that counterfeit cashier's checks of Frost National Bank are being issued nationwide and are also being used to transact a type of overpayment fraud. In this fraud, a "purchaser" of goods asks the seller to remit the amount by which the counterfeit cashier's check overpays for those goods. OCC:ALERT 2003-3 2/24/03

FTC to Host Workshops on Role of Technology in Helping Consumers And Businesses Protect Personal Information

The Federal Trade Commission will host two public one-day workshops to explore the role of technology in helping consumers and businesses protect the privacy of personal information, including the steps taken to keep their information secure. FTC Press Release 2/24/03

File Format for the Upcoming 2003 FFIEC Census

The census file contains the nationwide census data that are used as input to HMDA processing. It is important to note that 1990 census tracts have been used in processing HMDA 1996 data through 2002 data. 2003 Census Tape File Specifications PDF     MS Word 97 2/21/03

Careers at FDIC

Who we are, what we do, where we work. Current job vacancies nationwide. Careers 2/21/03

FRB Issues Final Rule Amending Regulation B

The Final Rule creates an exception which allows creditors to collect previously prohibited personal data from applicants in connection with nonmortgage credit. The creditor must plan to use the information in a self-test for ECOA compliance and must disclose to applicants that providing the information is voluntary, being collected to monitor ECOA compliance, and will not be used in making the credit decision. FRB Press Release 2/20/03

Treasury Department Issues Additional USA PATRIOT Act Regulations

Treasury and FinCEN issued a proposed rule and two advance notices of proposed rulemaking concerning a requirement that additional categories of non-traditional financial institutions establish an anti-money laundering program. The proposed rule covers a broad range of industry segments including those trading in precious metals, including refiners; those trading in loose gemstones; large and small scale manufacturers of jewelry; retail stores that function as a dealer in such items;and on vehicle sellers and travel agents. Press Release 2/20/03

Thrifts Earn Record $11.8 Billion In 2002; Thrift Assets Grow To $1 Trillion

The thrift industry had back-to-back record-setting earnings years, the Office of Thrift Supervision reported.
“Last year was the best year in thrift industry history,” OTS Director James E. Gilleran said, “with earnings reaching $11.8 billion in 2002, following record earnings of $10.2 billion in 2001.” OTS 03-05 2/20/03

FRB Issues an Interpretation Concerning the Underwriting by Foreign Banks of Securities

The interpretation clarifies that a foreign bank that wishes to engage in such activity must either be a financial holding company or have authority to engage in underwriting activity under section 4(c)(8) of the Bank Holding Company Act. 68FR7898 (txt) 68FR7898 (pdf) 2/19/03

Fedwire Securities Service via FedLine for the Web

FedLine for the Web Services 2/19/03

Consumer Advisory Council to Hold Meeting

The Federal Reserve Board announced that the Consumer Advisory Council will hold its next meeting on Thursday, March 13. The meeting will take place in Dining Room E, Terrace level, in the Board's Martin Building. The session will begin at 9:00 a.m. and is open to the public. Anyone planning to attend the meeting should, for security purposes, register no later than Tuesday, March 11, by completing the form found on-line at: Form. FRB Press Release 2/18/03

Decision of the OCC on the Application to charter Charles Schwab Bank, N.A., Reno, Nevada

Decision 2/18/03

FDIC Names Chief Economist and Chief Accountant

The FDIC announced that Richard A. Brown of the Division of Insurance and Research (DIR) and Robert F. Storch of the Division of Supervision and Consumer Protection (DSC) have been named the Corporation's Chief Economist and Chief Accountant, respectively.
FDIC:PR-13-2003 2/18/03

FATF withdraws counter-measures with respect to Ukraine and decides on date for counter-measures to Philippines

As a result of the implementation of significant reforms to its anti-money laundering system, Grenada
was removed from the Financial Action Task Force (FATF) list of Non-Cooperative Countries and
Territories (NCCTs). FATF will continue to monitor the implementation of Grenada’s anti-money
laundering system. FATF Press Release 2/18/03

• FATF Report on Typologies
• Interpretative Note to Special Recommendation VI: Alternative Remittance
• Interpretative Note to Special Recommendation VII: Wire Transfers

FDIC Adopts Final Rule on Federal Deposit Insurance Eligibility for State Banks Chartered as Limited Liability Companies

A new amendment to Part 303 of the FDIC's Rules and Regulations clarifies that a state bank that is chartered as a limited liability company could be considered "incorporated" for the purposes of being eligible for federal deposit insurance. FDIC:FIL-13-2003 2/14/03

Bogus ID Theft Protection Scam Busted

A final settlement order entered into this month between the FTC and two telemarketers imposes a comprehensive lifetime telemarketing ban on the two individuals and prohibits them from from a wide range of conduct, including misrepresenting that they are affiliated with a bank, financial institution, VISA, MasterCard, or a consumer protection agency. The brothers allegedly employed large numbers of telemarketers who marketed, among other things, bogus ID theft protection services. FTC Press Release 2/14/03

Announcement to all Money Services Businesses

The suspicious activity reporting (SAR) requirement applicable to the money services businesses (MSBs) industry has been in effect for more than one year. MSBs were advised in October 2002, that a new form had been created specifically for the MSB industry entitled Suspicious Activity Reporting by Money Services Business (Form TD F 90-22.56). The form is now available. Announcement 2/14/03

OCC Proposes Amends to Several of its Regulations to Update and Clarify

Proposed revisions to parts 5 and 7 would implement several sections of the American Homeownership and Economic Opportunity Act of 2000 (AHEOA), which enables national banks to undertake certain corporate organizational changes more efficiently than under previous law, and also provides for more modern corporate governance mechanisms for national banks. [This was previously announced on BOL] OCC 2003-8 2/14/03

FDIC Issues Alert on Counterfeit Official Checks

Counterfeit cashier's and teller's checks, drawn on Southern Bank and Trust Co., Mount Olive, North Carolina, and Hudson River Bank & Trust Co., Hudson, New York, respectively, are in circulation. FDIC:SA-6-2003 2/14/03

FDIC Issues Warning on Entities That May Be Conducting Banking Operations Without Authorization

The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 39), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. Two entities, Transamerica Investors Group and Sun Trust Insurance Company of Canada/Sun Trust Financial, are illegally operating as financial institutions. FDIC:SA-7-2003 2/14/03

FDIC FIL about OFAC Change

The Department of the Treasury's Office of Foreign Assets Control has amended its list of Specially Designated Nationals and Blocked Persons. [This was previously announced on BOL] FDIC:FIL-12-2003 2/14/03

Final Decision and Order of Prohibition against Cynthia Rowe

The FRB announced the issuance of a Final Decision and Order of Prohibition against Cynthia Rowe, a former employee of Key Bank, N.A., Cleveland, Ohio. Press Release 2/14/03

Final Decision and Order of Prohibition against Marian L. Butler

The FRB announced the issuance of a Final Decision and Order of Prohibition against Marian L. Butler, a former employee of CoreStates Financial (now First Union), Philadelphia, Pennsylvania. Press Release 2/14/03

Deceptive Claims of FDIC Insurance Coverage

Two entities are falsely representing to potential customers on their respective Web sites that they are insured by the FDIC. In addition, neither entity is licensed or chartered in their respective home countries. FDIC:SA-8-2003 2/14/03

USA PATRIOT Act Section 314(a) Information

USA PATRIOT Act Section 314(a) information requests will resume on Tuesday, February 18, 2003. Information relevant to the operation of the system will be disseminated directly to participating financial institutions prior to that date. Financial institutions should refer questions on system operation to their primary regulator or to FinCEN (Regulatory Help Line 800-949-2732). Press Release
BOTTOM LINE: Previously, their guidance had said the requests would resume "the week of February 17th". They now have a date certain -- February 18th -- for the first round of requests. Be sure you read the instructions closely to make sure you are doing what is required and in a timely manner. 2/13/03

FDIC Issues Final Rule on Insurance of State Banks Chartered as Limited Liability Companies

The FDIC has adopted a final rule regarding whether and under what circumstances the FDIC will grant deposit insurance to a State bank chartered as a limited liability company (LLC). Pursuant to section 5 of the Federal Deposit Insurance Act (FDI Act) the FDIC may grant deposit insurance only to certain depository institutions. 68FR7301 (txt) 68FR7301 (pdf) 2/13/03

New Information Security Guidance for Examiners and Financial Institutions

The Federal Financial Institutions Examination Council (FFIEC) has issued a booklet with revised guidance for identifying institutions' information security risks and evaluating their risk-management practices. This is the first in a series of updates to the 1996 FFIEC Information Systems Examination Handbook, which will eventually replace the 1996 handbook and comprise the new FFIEC Information Technology (IT) Examination Handbook. [This was earlier announced on BOL] FDIC:FIL-11-2003 2/13/03

OCC Updates Examination Procedures on Prohibition Against Interstate Deposit Production

This bulletin announces the distribution of interagency examination procedures that have been updated to conform to the final rule effective October 1, 2002, which amended regulations implementing section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These updated procedures are to be used when examining banks that have established or acquired interstate branches, or that are controlled by an out-of-state bank holding company. OCC 2003-6 Updated Examination Procedures 2/12/03

OCC Publishes Notice that U. S. Treasury to Reinstate USA PATRIOT Act Section 314(a) Information Requests

On February 6, 2003, FinCEN issued a press release advising financial institutions that 314(a) information requests would be reinstated during the week of February 17, 2003. [This was previously announced on BOL] OCC:SR 03-3 2/12/03

DOS-Based FedLine

The current DOS-based FedLine software provides a common, electronic access method for accessing the Federal Reserve's financial services. This PC-based connection allows customers to process daily transactions, monitor account balances, and receive timely reports. Announcement 2/12/03

Electronic Deposit Insurance Estimator

The FDIC is releasing the new banker version of EDIE in a downloadable format that financial institutions may load directly onto their networks. FDIC:FIL-10-2003 EDIE 2/12/03

OFAC Issues Final Rule Concerning the Disclosure of Certain Civil Penalties Information

OFAC intends to publish information about civil penalties imposed and informal settlements on a weekly basis. If the publication falls on a holiday, or if required by an emergency, publication may be postponed to the following week. 68FR6820 (txt) 68FR6820 (pdf) 2/11/03

OCC Requests Comment on Removal, Suspension, and Debarment of Accountants From Performing Audit Services

This proposal would amend the Agencies' rules to establish rules of practice and procedure for the removal, suspension, and debarment of accountants and their firms from performing section 36 audit services for insured depository institutions. [This was previously announced on BOL] OCC 2003-5 2/11/03

FDIC to Market Southern Pacific Bank Loans

The FDIC announced that it will market a $300 million loan portfolio retained by the FDIC from the failed Southern Pacific Bank, Torrance, California, within the next 60 days. FDIC:PR-12-2003 2/11/03

OCC Proposes Amends to Several of its Regulations to Update and Clarify

The proposed revisions relate to the new authority provided to national banks by the American Homeownership and Economic Opportunity Act of 2000 ( AHEOA) regarding bank reorganization; number of board of directors and their terms; and, mergers with nonblank affiliates. In additon, the proposal clarifies issues regarding the OCC's visitorial powers. Comments must be received by April 8, 2003. 68FR6363 (txt) 68FR6363 (pdf) 2/10/03

NACHA Internet Council Reports on Managing Risks of Internet Payments

The Internet Council has issued two new publications designed to provide financial institutions and merchants with educational resources on managing risk and preventing fraud associated with Internet-initiated payments. Fraud Paper
Press Release
2/10/03

Regulation K interpretation on foreign banks underwriting securities to be distributed in the United States

The interpretation clarifies that a banking organization that wishes to engage in underwriting securities that are to be distributed in the United States must be either a financial holding company or have authority to engage in underwriting activity under section 4(c)(8) of the Bank Holding Company Act. Press Release     Interpretation 2/10/03

FinCEN Issues Final Rule to Make it a Requirement That Currency Dealers and Exchangers Report Suspicious Transactions

The amendments require all money services businesses to which the suspicious transaction reporting rule applies to report transactions involving suspected use of the money services business to facilitate criminal activity. 68FR6613 (txt) 68FR6613 (pdf) 2/10/03

SEC Amends Definition of "Dealer" for Banks

The Commission voted to adopt rules amending definitions of terms used in a bank exception to the definition of "dealer" in Section 3(a)(5) of the Securities Exchange Act of 1934, amending an exemption for banks from the definition of dealer for certain de minimis riskless principal transactions, adding a new exemption from broker-dealer registration for certain bank securities lending transactions, and extending an exemption from rescission liability for contracts entered into by banks in a dealer capacity for a transition period until March 31, 2005. SEC:2003-21 2/10/03

OFAC Publishes Chart

OFAC Publishes a chart on Cali Cartel business structure. Chart 2/10/03

FATF Plenary to Meet

The Financial Action Task Force (FATF) will meet in Paris, 11-14 February, to discuss new methods of money laundering and terrorist financing and to review developments in non-cooperative countries and territories. The FATF will also report on its progress to counter the financing of terrorism. Press Release 2/10/03

OCC Issues Recent Updates on Licensing Manual

Two revised booklets of the Comptroller’s Licensing Manual series, "Public Notice and Comment" and "Changes in Directors and Senior Executive Officers" are available on the OCC’s Internet site. Public Notice and Comment's title was changed from “Public Involvement” as it is more descriptive of the contents. These booklets update and replace the previous 1998 version. Public Notice and Comment    Changes in Directors and Senior Executive Officers 2/10/03

Federal Reserve System Check Operations Restructuring Announcement

The Federal Reserve System has announced plans to restructure check processing operations to 32 locations nationwide and check adjustment operations to 12 locations. Letter to our Customers from Reserve Bank First Vice Presidents    Map of Check Processing Changes by District 2/10/03

FDIC Approves the Assumption of the Insured Deposits of Southern Pacific Bank, Torrance, California

The Board of Directors of the FDIC approved the assumption of the insured deposits of Southern Pacific Bank, Torrance, California, by Beal Bank, S.S.B., Plano, Texas. FDIC:PR-11-2003 FDIC Information for Southern Pacific Bank 2/10/03

FinCEN to Reinstate USA PATRIOT Act Section 314(a) Information Requests

The FinCEN will be reinstating information requests associated with section 314(a) of the USA PATRIOT Act during the week of February 17, 2003. Generally, section 314 authorizes law enforcement authorities to communicate with financial institutions about suspected money launderers and terrorists, and financial institutions to communicate amongst themselves about such matters. Read the BOL Summary in "Life After The Moratorium".    FinCEN Press Release    Instructions    FAQ 2/7/03

FRB Announce Changes to Increase Efficiency In Check Services as Check Volumes Decline Nationwide

The Federal Reserve Banks, collectively the nation's largest processor of checks, announced changes to their back office check-processing operations intended to improve operating efficiency while maintaining high-quality check services to depository institutions nationwide. FRB Press Release 2/7/03

FDIC Issues February List of Banks Examined for CRA Compliance

The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in November 2002. FDIC:PR-10-2003 2/6/03

Written agreement with Premier Financial Bancorp, Inc.

The Federal Reserve Board announced the execution of a Written Agreement by and between Premier Financial Bancorp, Inc., Huntington, West Virginia, and the Federal Reserve Bank of Cleveland. FRB Press Release 2/6/03

OCC Issues Alert on Unauthorized Banking: Allied Boston Bank, Inc., Banking License Denial, Republic of Palau

This issuance conveys information on the denial of a banking license application to Allied Boston Bank, Inc. Allied has never had a license to practice and/or perform banking and related financial activities. The Financial Institutions Commission of the Republic of Palau further informed the OCC that Allied is in the process of relinquishing its corporate charter. ALERT 2003-1 2/6/03

Head of Treasury Office of Critical Infrastructure Protection Announced

On January 4, 2003 the Treasury Department named Michael A. Dawson as the Deputy Assistant Secretary for Critical Infrastructure Protection and Compliance Policy. He will oversee the efforts of the office to enforce statutes and regulations regarding money laundering, terrorist financing and identity theft. The office will continue to develop and implement policies regarding the security of personal financial information and the sharing of suspicious information under BSA. Treasury Press Release 2/5/03

DOD Joins FDIC'S Money Smart Alliance; Will Deploy Financial Education Program at Military Installations Worldwide

The FDIC and the DOD are joining forces to make basic financial education available to 1.4 million servicemen and women at home and abroad, as well as to their families. Through an agreement announced today, DOD has adopted the FDIC's Money Smart financial education program for use at more than 3,000 military installations around the world. FDIC:MS-002-2003 2/5/03

2003 Guide Information Letter is now available

This letter supplements A Guide to HMDA Reporting: Getting It Right! In 2002 the Board announced major changes to Regulation C (including its appendices), the Staff Commentary, and the HMDA file specifications and edits. For those changes that took effect on January 1, 2003, this letter supplements the 1998 Guide, which should be used for guidance on collection and reporting of calendar year 2003 HMDA data due March 1, 2004. Most of the changes made in 2002, however, do not take effect until January 1, 2004. An updated version of the Guide will reflect those changes. FFIEC Letter 2/4/03

FTC Examines Spam Relief

The Federal Trade Commission has announced that it will hold a three day public workshop May 2, 2003 to address the proliferation of unsolicited commercial e-mail and to explore the technical, legal, and financial issues associated with it. Financial institution personnel may be interested from a personal standpoint, but also to make sure any "solutions" put into place do not unduly restrict the ability of financial institutions to utilize the Internet to communicate with customers and prospective customers. FTC Press Release 2/4/03

Treasury Announces Increase in Funds to Combat Money Laundering and Terrorist Financing

The Administration is proposing significant increases in funding for Treasury Department programs that work to combat money laundering and terrorist financing around the world. In its fiscal year 2004 budget to be released on Monday, February 3,
2003, the Administration proposes a $2.1 million increase in funding for Treasury’s Financial Crimes Enforcement Network (FinCEN), and a $4 million increase in funding for Treasury’s technical assistance program under the Office of International Affairs. 2/4/03

FDIC Makes Public December Enforcement Actions; No Administrative Hearings Scheduled

The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in December. No administrative hearings are scheduled for February. FDIC:PR-7-2003 2/4/03

FDIC State Profiles

Banking and economic conditions described for each state. Updated quarterly. State Profiles 2/4/03

Pennsylvania Man Indicted on Charges of Making False Statements to The RTC

FDIC Inspector General Gaston L. Gianni, Jr., has announced that a federal grand jury in Philadelphia has returned an indictment against Gerald L. Katzoff of Morrisville, PA, charging him with four counts of making false statements to the Resolution Trust Corporation (RTC) in violation of 18 U.S.C. § 1014. The FDIC in 1996 became responsible for winding up the affairs of the RTC, which was created by Congress to resolve the savings and loan crisis of the late 1980s and early 1990s. FDIC:PR-9-2003 2/4/03

FRB Issues Final Rule to Reg H

The FRB announced the adoption of a final rule implementing several of the reporting, disclosure and corporate governance requirements of the Sarbanes-Oxley Act of 2002 for those state member banks that have a class of securities registered under the Securities Exchange Act of 1934. [This was previously announced on BOL] FRB Press Release 2/3/03

Holiday District Announcements

The Federal Reserve Banks will be closed on Monday, February 17, 2003, for the Presidents' Day holiday. Announcement 2/3/03

Peoples National Bank to Pay $175,000 Civil Money Penalty And End Payday Lending Relationship with Advance America

The OCC announced that Advance America, Cash Advance Centers, Inc. and Peoples National Bank, Paris, Texas, have agreed to end their payday lending arrangement and that the bank has agreed to pay $175,000 in civil money penalties. OCC:NR 2003 - 06 Consent Form Plan to attend the BOL Learning Connect event "Predatory versus Sub-Prime: Making Good Loans Without Stepping on Grenades" on February 26th 2/3/03

FDIC FIL about OFAC Change

Treasury's Office of Foreign Assets Control (OFAC) has amended its list of Specially Designated Nationals and Blocked Persons. FDIC:FIL-9-2003 [This was previously announced on BOL] 2/3/03

OCC Seeks Comment on Package of Rules Dealing with AHEOA, Fiduciary Activities, Real Estate Lending and Visitorial Powers

The OCC proposed regulations implementing provisions of the American Homeownership and Economic Opportunity Act of 2000 (AHEOA), revising and updating other provisions of its rules, and clarifying its existing rule concerning the agency's exclusive visitorial powers to examine, supervise and regulate national banks. OCC:NR 2003 - 07 2/3/03

FDIC Debuts Analysis of State Economic and Banking Information

The FDIC launched a new Internet-only publication, FDIC State Profiles. In an executive summary format, this quarterly publication provides an analysis of state economic and banking trends and aggregate financial data on insured institutions headquartered in all 50 states, Puerto Rico and the U.S. Virgin Islands. FDIC:PR-6-2003 2/3/03