Top Stories for July 2004

Ways To Reduce Fraud Losses Detailed In Report

The Association of Certified Fraud Examiners has released its "2004 Report to the Nation on Occupational Fraud and Abuse" which contains the results of a continuing investigation of the changing methods, mores and mechanics of both domestic and international financial fraudsters. The report will be of special interest to auditors, compliance officers and security offices. It contains timely suggestions of ways for a financial institution to reduce exposure to fraud losses.
Fraud Report 7/30/04

Counterfeit State Warrants Special Alert

The FDIC has issued a Special Alert regarding counterfeit warrants bearing the name of the State of Florida, Department of Financial Services. Information regarding the counterfeit warrants has been posted on the BOL Alerts & Counterfeits page. 7/30/04

OFAC Issues Interim Final Rule Regarding Zimbabwe

OFAC has issued an Interim Final Rule which adds new regulations that implement the provisions of a previously announced Executive Order regarding the blocking of property of persons undermining democratic processes or institutions in Zimbabwe.
Interim Final Rule 7/30/04

International Reserve Position

Treasury has released the U.S. International Reserve Position for the week ending July 23, 2004.
International Reserve 7/30/04

Owned And Managed Receivables Report Released

The FRB has released the G.20 Finance Companies Owned and Managed Receivables Report for May 2004.
G.20 7/30/04

OCC Bulletin Regarding FACT Act Model Notices

The OCC has issued a Bulletin regarding the previously announced Final Rule implementing the FACT Act and providing Model Notices to customers concerning the furnishing of negative information to consumer reporting agencies. Information regarding the Final Rule and the Model Notices was posted June 16, 2004 in BOL Top Stories. Bulletin; Final Rule 7/30/04

CIP Exam Procedures Issued

The federal financial regulators have issued the procedures that will be followed by examiners when conducting a CIP examination. The procedures are designed to help financial institutions fully implement the new CIP requirements and facilitate a consistent supervisory approach among the federal financial institutions regulatory agencies. Procedures;
FRB SL;
OCC Bulletin;
OTS CEO Ltr;
FDIC;
NCUA 7/29/04

FinCEN Updates Zip Code List

FinCEN has posted online the updated ZIP Code Validation List for the Mag Specs which are utilized when filing SARs and CTRs. Click on the specific form needed to obtain the new information. Updated Forms 7/29/04

Beige Book Updates

The FRB has published the latest updates to the Beige Book based on information collected prior to July 19, 2004.
Beige Book Full Report;
Summary 7/29/04

A & L Price Tables Released

OTS has released selected Asset and Liability Price Tables as of June 30, 2004.
Price Tables 7/29/04

OFAC FIL Issued

An FIL has been issued by the FDIC regarding previously announced additions to the OFAC SDN List. Information regarding the additions was posted July 23, 2004 on the BOL OFAC page.
FIL-88-2004 7/29/04

Regulators Publish Risk-Based Capital Guidelines in FR

The Regulators are amending their risk-based capital standards by removing a sunset provision that would preclude a certain
capital treatment for asset-backed commercial paper (ABCP) programs after a certain date. 69FR44908 (txt) 69FR44908 (pdf) 7/28/04

Currency Fitness For Circulation Guidelines Revised

The FRB has revised the guidelines for distinguishing between federal reserve notes that are fit and unfit for further circulation. The new provisions take into account comments received from the public concerning the challenges associated with setting a clear and useable standard for certain fitness characteristics. Currency Guidelines 7/28/04

Counterfeit Cashier's Checks Special Alerts Issued

The FDIC has issued two Special Alerts regarding counterfeit cashier's checks drawn on Peoples State Bank, Wausau, Wisconsin; Centier Bank, Whiting, Indiana; and The Dime Bank, Honesdale, Pennsylvania. Information regarding the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page. 7/28/04

July Issue Of FedFocus Posted Online

The July issue of FedFocus is available online and features articles regarding Check 21, web access options, FedACH International and FedImage service enhancements. July FedFocus 7/28/04

Check 21 Final Rule Issued

The FRB has issued the final amendments to Reg CC along with commentary to implement Check 21. For more information regarding Check 21, read the articles and Q & As on the BOL Check 21 page. A series of upcoming Check 21 BOL Webinars is also listed on the BOL Learning Connect Calendar.
Final Rule 7/27/04

Counterfeit Cashier's Checks Alert

The OCC has issued an Alert regarding counterfeit cashier's checks issued in the name of Indian River National Bank, Vero Beach, Florida. Information regarding the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page. 7/27/04

HMDA and CRA Data Released By FFIEC

The FFIEC has announced the availability of data on mortgage lending reported by financial institutions covered by HMDA and small business, small farm, and community development lending reported by commercial banks and thrifts covered by CRA.
HMDA Data;
CRA Data 7/27/04

OTS To Conduct Financial Management Seminars

OTS has announced plans to conduct a series of financial management seminars designed to benefit those responsible for accounting and financial reporting, coordination of auditing services or interest rate risk analysis.
Seminars; Registration Form 7/27/04

Regulators Enter Written Agreement With Dutch Bank

The FRB, along with New York and Illinois bank regulators, has entered a Written Agreement with ABN AMRO Bank, N.V., Amsterdam, The Netherlands, and its New York branch regarding BSA and AML compliance. Written Agreement 7/27/04

New International Banking Journal Gains FRB Support

The FRB has announced that it will support the development of a new publication focused on central bank theory and practice and issued a call for research papers. The International Journal of Central Banking (IJCB) is a joint project of the Bank for International Settlements (BIS), the European Central Bank, and each of the Group of Ten (G-10) central banks. Support;
IJCB 7/27/04

President Issues OFAC Executive Order

President Bush has issued an Executive Order that blocks the assets of twenty-eight individuals and adds their names to the SDN List in addition to prohibiting the importation of certain goods from Liberia. Information regarding the additions to the SDN List have been posted on the BOL OFAC page.
Executive Order 7/26/04

Revisions To BHC Rating System Proposed

The FRB is requesting comments on proposed revisions to the BHC rating system to conform the system to current supervisory practices. Under the revised rating system, each holding company would be assigned a composite rating based on an evaluation and rating of three essential components of an institution's financial condition and operations. Proposal 7/26/04

Reduction Of Regulatory Burdens Suggestions Sought

The FDIC has issued a FIL requesting suggestions on ways to reduce the regulatory burdens associated with consumer protection regulations dealing with account/deposit relationships and miscellaneous consumer rules. FIL-86-2004 7/26/04

NCUA Proposes Additional Conversion Disclosures

NCUA has issued proposals to update and amend its regulations to establish certain communications and disclosures be provided to members prior to voting to convert from federal to nonfederal insurance, to terminate federal insurance, or to convert to a mutual savings bank.
Proposals 7/26/04

Preliminary June 30 Call Reports

The FDIC has posted the preliminary June 30, 2004 Call Report data online.
June Call Report Data 7/26/04

Agencies Delay CDR Rollout

The FRB, FDIC and OCC have announced that the October 1, 2004 rollout of the Central Data Repository, an Internet-based system created to modernize and streamline how the agencies collect, validate and distribute call report data, will be delayed to allow more time for testing and enrollment. FRB;
FDIC; OCC 7/23/04

Counterfeit Warrants Alert

The OCC has issued an Alert regarding a significant increase in the circulation of counterfeit warrants bearing the name of the Florida Department of Financial Services. Information concerning ways to identify the bogus warrants is included in the Alert.
Counterfeit Warrants Alert 7/23/04

International Banking FIL Issued

A FIL that proposes amendments to Parts 303, 325, 327 and 347 of the FDIC's Rules and Regulations relating to international banking by insured state nonmember banks and insured U.S. branches of foreign banks has been issued.
FIL 85-2004; Amendments txt pdf 7/23/04

Electronic Record Systems AL Issued

The OCC has issued an AL which provides a basic framework for bank management to use to assess and address key issues concerning bank electronic record keeping systems and the provisions of the E-SIGN Act. OCC AL-2004-9 7/22/04

Risks Of Instant Messaging Guidance Issued

A FIL with an attached Guidance regarding the risks associated with publicly available instant messaging and network file-sharing has been issued by the FDIC. FIL; Guidance 7/22/04

Self Assessment Guides Available Online

The FDIC has posted online four Deposit Reporting Self Assessment Guides for use as references and self-assessment tools for properly reporting Call Report deposits. Self Assessment Guides 7/22/04

International Reserve Position Update

The FRB has updated the U.S. International Reserve Position to include data from the week ending July 16, 2004.
International Reserve 7/22/04

Minority-Owned Banks Report

The FRB has issued its report of minority-owner banks as of March 31, 2004.
Minority-Owned Banks 7/22/04

FACTA Affiliated Marketing Comment Deadline Extended

In a Federal Register document published June 15, 2004, the
FTC requested comment on a proposed rule that provided for consumer notice and an opportunity to prohibit affiliates from using certain information to make or send marketing solicitations to the consumer. The Commission is extending its comment period until August 16, 2004. 69FR43546 pdf 7/21/04

Greenspan Says Fed Will Act If Needed To Maintain Price Stability

Chairman Greenspan presented the FRB's semiannual Monetary Policy Report To Congress and indicated that the profits of nonfinancial corporations are advancing at a pace not experienced since 1983. As a result, close attention is being paid to data regarding costs and prices when assessing the current monetary policy. He noted that the FOMC has emphasized that it will respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability. Speech;
Monetary Policy Report txt pdf 7/21/04

Risk-Based Capital Standards Final Rule Issued

The federal financial institution regulators have issued a Final Rule which amends their risk-based capital standards regarding the calculation of ABCP program assets that are consolidated into the balance sheet pursuant to FIN-46-R. The Rule, which will be published shortly in the Federal Register, will become effective on September 30, 2004. Final Rule;
FRB;
OCC;
OTS;
FDIC 7/21/04

Thrift CRA Evaluations Released

OTS has released the June 2004 CRA Performance Evaluations for savings associations.
CRA Evaluations 7/21/04

OCC Issues Bulletin Regarding CRA JIR

A Bulletin has been issued by the OCC regarding the CRA Joint Interim Rule that was previously announced by the federal banking regulators, published in the Federal Register, and posted in BOL Top Stories on July 8, 2004. Bulletin 2004-33;
JIR txt pdf 7/21/04

Household Debt Service and Financial Obligation Ratios Released

The FRB has released the Household Debt Service and Financial Obligations ratios for the First Quarter 2004.
Ratios 7/20/04

New Working Papers Published

The FRB has published two new working papers in the International Finance Discussion series entitled: Good News Is No News? The Impact of Credit Rating Changes on the Pricing of Asset-Backed Securities; and The Delayed Response To A Technology Shock. A Flexible Price Explanation. Good News;
Delayed Response 7/20/04

Regulators To Withdraw Proposed CRA Amendments

The federal financial regulators have announced their intentions to withdraw the amendments to the CRA regulations which were proposed in February 2004 and would have raised the small bank threshold in addition to allowing the reduction of a CRA rating due to abusive lending practices. FRB;
OCC;
OTS;
Proposal txt; pdf 7/19/04

August HOEPA Reference Rates

The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in August 2004 will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, you use the yield in effect on the 15th of the month that precedes the month you received the application. H. 15 Daily Rates;
H. 15 Weekly Rates 7/19/04

May 2004 International Capital Data Released

Treasury has released the International Capital Data for May 2004.
Summary;
Data Table 7/19/04

FTC Publishes Rights and Notices under FCRA in FR

The FTC is publishing for public comment two summaries of rights under the FCRA and two notices of duties under the FCRA. 69FR41616 (txt) 69FR41616 (pdf) 7/16/04

President Signs ID Theft Act

President Bush has signed the Identity Theft Penalty Enhancement Act which prescribes prison sentences for those who use identity theft to commit other crimes. ID Theft 7/16/04

FIL Regarding Affiliate Marketing Opt Out NPR

The FDIC has issued a FIL regarding the previously announced NPR that would give consumers the chance to "opt out" before a financial institution uses information provided by an affiliated company to market its products and services to the consumer. The NPR was published in the Federal Register on July 15, 2004 and comments are due by August 16, 2004. FIL-82-2004 7/16/04

OCC Enforcement Actions Announced

The OCC has announced seventeen enforcement actions taken against national banks and individuals currently and formerly associated with national banks. Enforcement Actions 7/16/04

CRA Exam Results Released

The OCC has announced the CRA ratings received by twenty-six national banks as the result of recent CRA examinations.
CRA Ratings 7/16/04

Counterfeit Money Orders Alert

The OCC has issued an Alert regarding counterfeit money orders of Crown Bank, N.A., that are being issued nationwide and are being used in connection with a pre-payment fraud scheme involving merchandise ordered via the Internet. Information concerning the counterfeit money orders has been placed on the BOL Alerts & Counterfeits page.
7/16/04

IT Guidance Issued

The FFIEC has issued two revised guidance booklets for examiners, financial institutions, and technology service providers on managing financial institutions' IT activities and outsourcing technology services. Management Booklet; Outsourcing Booklet 7/16/04

Money Laundering Challenges Outlined By OCC

Representatives of the OCC testified before the Senate Government Affairs Permanent Subcommittee on Investigations on the supervisory and enforcement actions the OCC has taken against Riggs Bank, and the challenges regulatory agencies face in combating money laundering and terrorist financing in the United States. Testimony;
Oral Statement 7/16/04

Stakeholder Letter Revised

The FDIc has issued a FIL regarding the revision of its recent Letter to Stakeholders.
FIL-81-2004; Revised Letter 7/16/04

Cost of Funds Reports Issued

OTS has issued the Current and Historical Cost of Funds Reports For OTS regulated, SAIF insured institutions.
Current; Historical 7/16/04

G. 17 Report Released

The FRB has released the G.17 Industrial Production and Capacity Utilization report for June 2004.
G.17 7/16/04

FDIC Revises Insurance Reserve Ratios

The FDIC has announce a revision of the March 31, 2004 reserve ratios, reported on May 27, 2004, for both the BIF and SAIF insurance funds. Reserve Ratios 7/15/04

Asset Securitization Featured in Quarterly Review

The feature article in the First Quarter 2004 issue of the Quarterly Review of Interest Rate Risk examines the growth of asset securitization. Quarterly Review 7/15/04

Regulators' Affiliate Marketing Proposal Published

The regulators including, the SEC have published in the Federal Register their proposed rule relating to information sharing among
affiliates for marketing purposes. The rulemaking is required by FACTA. SEC (txt) SEC (pdf) FRB, OCC, FDIC, NCUA, OTS (txt) FRB, OCC, FDIC, NCUA, OTS (pdf)
7/15/04

FRB To Discontinue Large Dollar Adjustment Courtesy Calls

FRB Financial Services has announced that the large dollar check adjustment and settlement entries courtesy calls will be discontinued effective October 1, 2004. Courtesy Calls 7/14/04

OCC Issues Bulletin Regarding SEC Reg B

The OCC has issued a Bulletin regarding SEC's proposed Reg B. The FDIC had previously issued a FIL regarding the proposal which was posted in the July 7, 2004 BOL Top Stories.
OCC Bulletin 2004-31;
FDIC FIL-79-2004;
SEC Proposal 7/14/04

July 9th International Reserve Position

Treasury has released the U.S. International Reserve Position for the week ending July 9, 2004.
International Reserve 7/14/04

SDGT Changed By OFAC

OFAC has changed one SDGT entry on the OFAC list which results in the addition of three new entries. Information regarding the change and the new entries has been posted on the BOL OFAC page. 7/14/04

2004 Credit Union Directory Available Online

NCUA has posted its 2004 Credit Union Directory online.
CU Directory 7/14/04

FRB Announces Written Agreement With Illinois Bank

The execution of a Written Agreement by and among the First Midwest Bank, Itasca, Illinois; the Illinois Department of Financial And Professional Regulation; and the Federal Reserve Bank of Chicago in which the bank agrees to enhance its compliance with AML rules and regulations, BSA and Reg H has been announced by the FRB. Written Agreement 7/13/04

Community Developments Newsletter Now Online

The OCC has posted the first online edition of the newsletter which focuses on how investments in New Markets Tax Credits (NMTCs) can help fill gaps in financing for projects located in economically-distressed communities.
Community Developments 7/13/04

International Reserve Position Update

Treasury has released the U.S. International Reserve Position for the week ending July 2, 2004.
International Reserve 7/12/04

FDIC Issues Second Quarter Stakeholder Letter

The FDIC has issued a FIL regarding the Second Quarter 2004 edition of its Letter to Stakeholders which reports on the regulator's priorities and actives during the quarter. FIL-81-2004;
Stakeholder Letter 7/12/04

Branch Banking Trends Featured In FYI

The July 9, 2004 edition of the FDIC FYI contains summaries of three reports that represent the fourth installment of the FDIC’s Future of Banking Study including one which discusses the decade-long trend of bank branch growth, the reasons behind the trend, and the branching outlook going forward. FYI 7/12/04

Survey Of Terms Report Released

The FRB has released the E. 2 Survey of Terms of Business Lending Report for the period May 3-7, 2004. The data is collected during the middle month of each quarter and released in the middle of the succeeding month.
E. 2 Survey 7/9/04

May Consumer Credit Report Issued

The G.19 Consumer Credit Report for May 2004 has been issued by the FRB.
G. 19 7/9/04

Comments Due on Disposal Of Consumer Information

The FTC is publishing a supplemental initial regulatory flexibility analysis to aid the public in commenting upon the small business impact of its proposed rule implementing section 216 of the FACT Act. 69FR41219 (txt) 69FR41219 (pdf) 7/8/04

CRA JIR Published in FR

The Federal banking regulators have issued a Joint Interim Rule to conform their regulations implementing CRA to changes made by the OMB and Census Bureau. JIR 69FR41181 (txt) 69FR41181 (pdf)
7/8/04

July CRA Examination List Released

The FDIC has released the July list of banks examined for CRA compliance.
CRA List 7/8/04

MSB Registration List Updated

FinCEN has updated the MSB Registration List to include new entries as of July 1, 2004. MSB List 7/8/04

Third Quarter Edition Quarterly Journal Now Online

The OCC has announced that the Third Quarter 2003 edition of the Quarterly Journal has been posted on its Web site. The issue features the condition of commercial banks, as well as mergers, interpretive letters, speeches and testimony, appeals, and financial performance of national banks. It is the last issue to be distributed in printed form. Future issues will be available on-line or by CD-ROM subscription. Quarterly Journal;
CD-ROM 7/8/04

SDN FIL Issued

The FDIC has issued a FIL regarding the entities recently added by OFAC to the SDN List. Information regarding the additions was posted June 30, 2004 on the BOL OFAC page.
FIL-80-2004 7/8/04

FMS Web Site Service Interruption Scheduled

The FMS has announced that due to scheduled server maintenance, its Web site will be unavailable Sunday, July 11, 2004 from 7:00 a.m. until approximately 12:00 p.m., EDT. FMS Site 7/8/04

FIL Regarding Securities Transactions NPR

The FDIC has issued a FIL regarding the previously published SEC NPR to issue a Reg. B which would broaden the exemptions for financial institutions conducting securities transactions. Information concerning the SEC proposal was posted in the June 3, 2004 BOL Top Stories. FIL-79-2004 7/7/04

State Profiles Updated

The FDIC has released the Spring 2004 quarterly update of its profile of the banking and economic conditions for each state.

State Profiles 7/7/04

Affiliate Marketing Opt Out NPR Issued

The federal financial institutions supervisory agencies have issued a NPR that would give consumers the chance to "opt out" before a financial institution uses information provided by an affiliated company to market its products and services to the consumer.
Marketing Opt Out FRB; FDIC; OCC; OTS; NCUA 7/6/04

Fraudulent OCC Online Banking Web Site

The OCC has issued an Alert regarding a web site that purports to be an online banking site operated by the OCC. The site is an attempt to obtain personal financial information from users for identity theft purposes.
Fraudulent Site 7/6/04

Bank Assessed $24 Thousand Dollar OFAC Penalty

The International Bank of Commerce, Laredo, Texas has been assessed a CMP of $24,512.79 by OFAC as the result of unblocked Cuban accounts. OFAC CMP 7/6/04

FRB Enters Written Agreement With Texas BHC

The FRB has announced the entering into a Written Agreement with Kenco Bancshares, Inc., Jayton, Texas regarding the violation of a condition imposed by the FRB in connection with a previously approved application.
Written Agreement 7/6/04

Guatemala Removed From NCCT List

FATF has announced that Guatemala has been removed from its list of Non-Cooperating Countries and Territories.
Guatemala;
NCCT List 7/6/04

OCC Issues Long Term Interest Rate Guidance

The OCC has issued a Bulletin regarding with risk management issues associated with embedded options. The guidance emphasizes the steps banks should take in order to effectively manage interest rate risk. Bulletin 7/2/04

Operating Circulars Revised

FRB Financial Services has announced the revisions of Operating Circulars 4,5,6 and 7 in connection with the new Fedline Advantage access program. FRB NR;
OC 4; OC 5; OC 6; OC 7 7/2/04

Special Alert - Counterfeit Official Checks

The FDIC has issued a Special Alert regarding counterfeit official checks after being advised by Heritage Bank, Jonesboro, Georgia, that counterfeit official checks bearing the institution name of Citizens National Bank (CNB), payable through BB&T, Charleston, West Virginia, are in circulation. Information concerning the counterfeit items has been posted on the BOL Alerts & Counterfeits page. 7/2/04

International Remittances and CRA

The FFIEC has posted on its Website an interagency letter responding to an inquiry by Congressman Frank regarding the consideration of international remittance services in a CRA evaluation. Response 7/2/04

June Foreign Exchange Rates Released

The G.5 Foreign Exchange Rated Report for June 2004 has been released by the FRB.
G.5 7/2/04

Credit Card Profitability Report Delivered To Congress

The FRB has its annual report to Congress as required by the FCCCDA regarding the profitability of credit card operations of depository institutions. Credit Card Report 7/2/04

Ag Finance Databook Published

The June 2004 edition of the E.15 Agricultural Finance Databook has been published by the FRB. The Databook contains farm loan information, quarterly call report data and surveys of farm credit conditions and land values. Loan Information; Call Report Data; Surveys 7/2/04

ATMs Ahoy

The Navy and the Financial Management Service (FMS) have announced that the Navy/Marine Cash™ financial system will be installed on 175 Navy ships through FY2008. ATMs 7/2/04

FOC Raises Fed Funds Rate

The FRB has announced that the FOC has raised the target rate for fed funds by 25 basis points.
Fed Funds 7/1/04

Travel Rule CIF Exception Expires

July 1, 2004 is the date that the CIF exception to the BSA Travel Rule expires. The Travel Rule requires a financial institution to include certain information in transmittals of funds of $3,000 or more. The CIF Exception addressed computer programming problems by relaxing the Travel Rule's requirement that a customer's true name and address be included in a funds transmittal order, as long as alternate steps were satisfied. Travel Rule Exception (txt) (pdf) 7/1/04

Recommended Practices Issued For Supervision Of State-Chartered Banks

The FRB has issued a SL which contains recommended practices to enhance the state-federal coordination of the regulation of state-chartered banks. SL-04-12;
Recommended Practices 7/1/04

FDIC Announces Twenty-Seven Enforcement Actions

The FDIC has announced twenty-seven enforcement actions taken against individuals and banks in May 2004. The actions included eight cease-and-desist orders, four removal-and-prohibition orders, eight civil money penalty orders, and seven terminations of cease-and-desist orders. Enforcement Actions 7/1/04

EDS Awarded BSA Direct Contract

FinCEN has announced that the contract for the design, development, implementation, web-hosting and support service for BSA Direct has been awarded to EDS. The contract for the information storage and delivery system requires that it be fully operational by October 2005.
BSA Direct Contract 7/1/04

Circulation Date For New $50 Set

The FRB has announced that the new $50 note which contains additional anti-counterfeit features will begin circulating on September 28, 2004. Financial institutions are urged to train employees who handle cash on how to utilize the new security features.
New $50 7/1/04

Balkan Entries Added To SDN List

OFAC has added three individuals and one entity to the SDN list with the BALKAN designation. Information regarding the additions has been posted on the BOL OFAC page. 7/1/04