Top Story Compliance Related

• OFAC Adds Al-Aqsa Foundation

  Al-Aqsa Foundation has been added to the OFAC list as an SDGT, with numerous aliases. Plus, changes have been made relating to the sanctions on Yugoslavia, and FRYM and Balkans entities. All FRYM and Balkans entries which were previously on the OFAC SDN list have been deleted, but 173 NEW Balkans entries (plus "A.K.A.s") have been substituted. Complete details are on the BOL OFAC summary page. 5/30/03

• FRB Issues Proposed Rule to Amend Reg K

  The FRB is seeking public comment on a proposal to require Edge and Agreement corporations and U.S. branches, agencies and other offices of foreign banks supervised by the Board to establish and maintain procedures reasonably designed to assure and monitor compliance with the Bank Secrecy Act and the regulations issued thereunder. [This was previously announced on BOL] 68FR32434 (txt) 68FR32434 (pdf) 5/30/03

• NCUA Issues Final Rule to Amend its Involuntary Liquidation Regulation

  The NCUA is issuing a final rule amending its involuntary liquidation regulation to designate swap agreements (swaps) as qualified financial contracts (QFCs). Treatment of swaps as QFCs will limit swap counterparty exposure when a federally-insured credit union is placed into involuntary liquidation or a conservatorship and thereby encourage entities to engage in swaps with federally-insured credit unions. Treatment of swaps as QFCs will also help preserve market stability. 68FR32355 (txt) 68FR32355 (pdf) 5/30/03

• FDIC April Enforcement Actions Announced

  The FDIC has released a list of orders of administrative enforcement actions taken against banks and individuals in April. The actions include two cease-and-desist orders, two removal-and-prohibition orders, seven civil money penalty orders, one voluntary termination of insurance order, one termination of a supervisory prompt corrective action directive, one termination of a cease-and-desist order, and one adjudicated decision.FDIC PR-50-2003 5/30/03

• FRB Announced Written Agreements with Two Institutions

  The FRB has announced it has entered into written agreements with Brickyard Bancorp, Inc., Lincolnwood, Illinois, and NAB Bank, Chicago, Illinois. Brickyard Bancorp, Inc. Agreement NAB Bank Agreement 5/30/03

• Dual Banking System Serves Customer Needs

  The advantages of the U.S. dual banking system were outlined by Treasury Assistant Secretary Abernathy to the Annual Meeting of the Conference of State Bank Supervisors. He noted over the last several years, State and National banks have made enormous strides in expanding the reach of their services. Millions of people are new customers of mainstream financial institutions. Treasury JS-437 5/30/03

• BOL User Sounds Counterfeit Cashier's Checks Alert

  A BOL User utilized Bankers' Threads Security Forum to post a warning of attempts to negotiate counterfeit cashier's checks drawn on the Border Trust Company, South China, Maine. The alert has been confirmed by the institution. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/30/03

• Veil Case Goes to Court

  A case in which a Muslim woman is suing the state of Florida for revoking her driver's license after she refused to unveil for the photo is finally going to court. Experts are lined up on both sides to debate the extent to which freedom of religion must give way to the interests of public safety. For purposes of verifying the identity of veiled customers for your CIP, take a look at an article from the BOL Archive: "Verifying Customer Identity Beyond the Veil". Related News Story 5/29/03

• Comments Sought on Reg K Amendment

  The FRB is seeking comments on a proposed amendment to Reg K that would require Edge and Agreement corporations and U.S. branches, agencies, and other offices of foreign banks supervised by the Board to establish and maintain procedures reasonably designed to ensure and monitor compliance with the Bank Secrecy Act and related regulations. Comments are due on or before June 30, 2003.FRB Notice 5/29/03

• FFIEC Reporting Forms Online

  The June 2003 FFIEC 031 and 041 Reporting Forms are available online.Form 031 Form 0415/29/03

• New Lower Tax Withholding Tables Online

  The Treasury and IRS have placed the new tax withholding table on their websites. The new tables are the result of the Jobs and Growth Tax Relief Reconciliation Act of 2003.Treasury PR    IRS PR    Treasury Tables    IRS Tables 5/29/03

• Now Online - Charge-Off and Delinquency Rates

  The FRB has placed online the charge-off and delinquency rates on loan and leases for commercial banks compiled from the quarterly FFIEC Consolidated Reports of Condition and Income. FRB Statistical Release 5/29/03

• Financial Holding Company List Updated

  The FRB has updated the list of the bank holding companies that have elected under the provisions of the Bank holding Company Act to become or treated as financial holding companies.FRB FHC 5/29/03

• Most Iraqi Sanctions Lifted

  Treasury Secretary Snow announced that OFAC has issued a general license that lifts most of the sanctions previously imposed against Iraq. The license permits all activities except trade in arms, certain cultural artifacts and transactions with certain Iraqi officials. Information regarding the OFAC action has been posted on the BOL OFAC page and the BOL OFAC Sanctions Matrix has been updated. 5/28/03

• FRB Issues Final Rule to Update Routing Numbers

  The FRB is publishing a final amendment to appendix A of Regulation CC that updates the routing numbers for Federal Reserve Banks and Federal Home Loan Banks. 68FR31592 (txt) 68FR31592 (pdf) 5/28/03

• FRB Issues Final Transition Rules for Reg C

  The FRB is publishing final amendments to the official staff commentary to Regulation C (Home Mortgage Disclosure). The amendments provide transition rules for applications received before January 1, 2004, on which final action is taken on or after January 1, 2004. 68FR31589 (txt) 68FR31589 (pdf) [This was previously announced on BOL]5/28/03

• Casino Gambled and Lost

  FinCEN announced the assessment of a $350,000 civil money penalty against the Greenville Riverboat, LLC d/b/a Lighthouse Point Casino for the willful failure to file 142 Currency Transaction Reports by Casino (CTRC) forms. The casino had a BSA program, but no CRTCs were filed for almost two years.FinCEN CMP 5/28/03

• Regulators Place Basel II Discussion Documents Online

  Documents developed by the FDIC, OCC, and FRB regarding the proposed revisions to the Basel Accord are available online. For the next several months, the agencies will be discussing U.S. implementation plans with bankers and other interested parties and soliciting comments on draft documents relating to implementation.FRB Basel II Accord 5/28/03

• FDIC Schedules Cyber Security Symposium

  The FDIC has announced that on June 13, 2003, it will host in partnership with the George Mason University School of Law a free day-long symposium regarding senior management's role in cyber security. The sessions will be held at the FDIC's L. William Seidman Center, Arlington, Virginia.FDIC PR    Agenda    Registration Form 5/28/03

• Credit Unions Post 5% Growth

  NCUA announced that federally insured credit unions posted a 5% growth in assets during the first three months of 2003. NCUA PR 5/28/03

• Reg C Transition Rules Released

  The FRB has published an amendment to the official staff commentary to Reg C that provide lenders with guidance on collecting and reporting information when an application for a home mortgage loan is received before and final action is taken after the effective date of revised Reg C, January 1, 2004. The revision requires lenders to report new data items, including information about loan pricing.FRB PR Official Staff Commentary 5/27/03

• FRB Interpretative Letters Online

  The FRB has made available online Interpretative Letters addressing regulatory capital status of a bank's indemnified agency securities lending program, exemption from quantitative limits of section 23A of the Federal Reserve Act, and title abstracting activities for aircraft as closely related to banking.Capital status Section 23A exemption Aircraft title abstracts 5/27/03

• OCC FAs With Failed Bank's Attorneys

  The OCC has announced that it has entered into formal agreements with the law firm Kutak Rock, LLP and the firm partner, Michael T. Lambert, who represented the failed First National Bank of Keystone, Keystone, West Virginia. The firm agreed to take certain actions with respect to representation of insured depository institutions, and Mr.Lambert agreed not to provide legal services to insured depository institutions.OCC NR 2003-40 Kutak Rock Agreement Lambert Agreement 5/27/03

• Counterfeit Cashier's Checks Alert

  The FDIC has issued an alert regarding counterfeit cashier's checks drawn on Bank of the West, San Francisco, California. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/27/03

• Comments Requested on FRB Proposal

  The FRB has requested comment by July 14, 2003 on a proposal to modify the method for imputing priced-service income from clearing balance investments.FRB PR Proposal 5/27/03

• War Risks and the Economy

  The FRB has placed online a working paper, "The Effects of War Risk on U.S. Financial Markets" which measures the effects of the risks associated with the war in Iraq on various U.S. financial variables.Working Paper 5/27/03

• OFAC Issues Interim Final Rule to Amend Iraqi Sanctions Regulations

  The general licenses authorize the following activities involving Iraq: non-commercial funds transfers (including family remittances) and related transactions, activities by the U.S. Government and its contractors or grantees, privately financed humanitarian transactions, and certain exports and reexports to Iraq. 68FR28753 (txt) 68FR28753 (pdf)5/27/03

• FFIEC HMDA 2003 Guide Now Online

  The FFIEC has placed the Guide to HMDA Reporting: Getting It Right online. The Guide provides a summary of responsibilities and requirements, directions for assembling the necessary tools, and step-by-step instructions for reporting HMDA data. The current 2003 version should be used for guidance on collection and reporting of calendar year 2003, and the 1998 version should be used for guidance on collection and reporting of calendar year 1998 through 2002.2003 Guide 1998 Guide 5/23/03

• Host State Loan-to-Deposit Ratios Issued

  The FRB, FDIC, and OCC have issued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. FRB Release    OCC    FDIC    FIL-41-2003    Ratios 5/23/03

• 37 OCC CRA Evaluations Online

  The OCC has released and placed online the results of CRA performance evaluations for the period April 15, 2003 to May 14, 2003. Of the 37 national banks reviewed, 8 were rated outstanding and 29 were satisfactory. None were needs to improve or substantial noncompliance. CRA Evaluations 5/23/03

• U.S. Financial Institutions Allowed in Iraq

  OFAC has published an Interpretative Guidance that authorizes U.S. financial institutions to establish a presence in Iraq for the limited purpose of facilitating the transfers of non-commercial humanitarian funds, Information regarding the Guidance has been placed on the BOL OFAC page. 5/23/03

• Weekly Bill Auctions Announcements Delayed

  The Treasury Department has postponed the announcement of its weekly 13-week and 26-week bill auctions and its monthly 2-year note auction, scheduled to be announced May 22, 2003, until further notice. This postponement is due to the statutory debt limit.Treasury JS389 5/23/03

• FRB Requests Comments

  The FRB has issued a request for comments on proposals to approve the extension for three years, without revision, of the following reports: FR 2064, FR H-4, and the RFP and RFPQ. Request for Comment 5/23/03

• Prospects for Economic Growth

  Learn the why FRB Governor Olson thinks the stage has been set for an improvement in the economic climate from his remarks to Minnesota Chamber of Commerce members. He indicated the recent news from oil and financial markets and consumer confidence clearly suggests that the reduction in risks associated with the situation in Iraq has had a number of favorable effects. Speech 5/23/03

• New Money Smart Alliance Partner

  The FDIC announced that National Image, Inc. has joined its Money Smart Alliance Program. National Image, Inc. is a network of professionals dedicated to assisting the U.S. Hispanic community in the areas of employment, education and civil rights. Headquartered in Denver, CO, National Image has local chapters throughout the United States. FDIC MSPR 1003 5/23/03

• OCC Issues Proposed Rule to Modify the Securities Offering Disclosure Rules

  The amendments to the Exchange Act give the OCC the authority to administer and enforce a number of the Sarbanes-Oxley Act's new reporting, disclosure, and corporate governance requirements with respect to national banks that have a class of securities registered under the Exchange Act. They are also proposing to make conforming revisions to the rules which prescribe securities offering disclosure rules for national banks that issue securities that are not subject to the registration requirements of Securities Act of 1933. 68FR27753 (txt) 68FR27753 (pdf) 5/22/03

• Counterfeit Cashier's Checks Alert

  The Federal Reserve Bank of San Francisco has issued an alert regarding counterfeit cashier's checks drawn on the Community Bank of Arizona, N.A., Wickenburg, Arizona. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/22/03

• Protection of Critical Financial Infrastructure

  Learn what actions the government and private industry are taking to protect the critical financial infrastructure. Read the comments of Treasury Deputy Assistant Secretary Dawson at a meeting of Protecting the Financial Sector, a Chicago public and private partnership. He noted the actions of Treasury are guided by the following three principles: 1) the safety of the tellers, loan officers, and technicians that make up the financial infrastructure; 2) ensuring that our financial institutions continue to function even during - especially during - times of stress; and 3) the promotion of decentralized decision-making and problem-solving, both as financial institutions prepare for disruptions and as they weather them. Treasury JS-397 5/22/03

• Fedwire Online Operating Hours to be Expanded

  The FRB has announced that the Fedwire Online Funds Service will open three and one-half hours earlier than the current opening time of 12:30 a.m. ET. The closing time for the service will remain 6:30 p.m. ET. The scheduled timeframe for full implementation of the expanded operating hours is the second quarter of 2004. Fedwire participants will be notified at least sixty days before the specific effective date of the new hours. FRB Notice 5/22/03

• Greenspan -The Economy Outlook

  In testimony before the Joint Economic Committee of Congress, Chairman Greenspan noted that one reassuring development that has been sustained through this extended period of economic weakness has been the performance of productivity. He indicated the economic fundamentals--including the improved conditions in financial markets and the continued growth in productivity--augur well for the future.Testimony 5/22/03

• Thrift First Quarter Interest Rate Measures

  OTS has released the Preliminary Thrift Industry First Quarter Interest Rate Measures.OTS Release 5/22/03

• Some Non-Local Checks to Become Local

  Effective July 22, 2003, the FRB has announced the deletion of obsolete numbers from and the addition of new numbers to the list of routing numbers in Appendix A to Reg CC for checks drawn on Federal Reserve Banks and Federal Home Loan Banks. In addition, the FRB gave notice of plans to reduce the number of check processing regions from 44 to 32. As a result, some checks that are currently designated non-local items will become local checks and be subject to faster availability schedules. Implementation of the reductions will occur in phases beginning the last half of 2003 and will be completed by the end of 2004. In order to give the affected financial institutions time to make processing changes and, if necessary, make adjustment to availability schedules and notify customers, the notice of each phase will published in the Federal Register at least 60 days before the effective date. FRB PR Final Rule and Amendments 5/21/03

• CTR Revisions May Be in the Works

  FinCEN has published a notice and request for comment on proposed revisions to the Currency Transaction Report and editorial changes to the instructions. Several editorial changes would be made in this revision, and two data collection blocks would be added to Part II for Foreign cash in and Foreign cash out. A new item 37a would be added in Part III for listing a foreign country code.68FR27143 (txt) 68FR27143 (pdf) 5/21/03

• OCC Issues BSA/AML Bulletin

  The OCC has issued a bulletin that gives notice of the revocation of the designation of Ukraine as a primary money-laundering concern and a proposed rule to impose "special measures" against Nauru.OCC Bulletin   Revocation Notice   Proposed Rule 5/21/03

• Seychelles Advisory Withdrawn

  FinCEN has withdrawn its Advisory 2 regarding the Republic of Seychelles. The enhanced scrutiny of transactions involving the Republic of Seychelles is no longer necessary.FinCEN 5/21/03

• FedACH NOC Information Online

  The online services offered by FedACH e now include derived returns and notifications of change. Operating Circular 4 was amended to reflect the new services. FRB Ser Operating Circular 4 5/21/03

• Thrifts Set Income Records

  OTS announced that in the first quarter of 2003 the nation's thrift industry set records for net income, profitability, equity capital and mortgage refinancing volume. The industry earned a record $3.33 billion for the quarter, nine percent higher than the previous record.OTS 03-17   Selected Indicators   Charts   Highlights   Charge-Off Rates 5/21/03

• Online FFIEC Guidance Booklets

  The FFIEC has made available online two revised guidance booklets, one for institutions and examiners regarding business continuity planning and the other for examiners regarding the supervision of technology service providers. Business Continuity Planning Booklet    Supervision of Technology Service Providers Booklet OCC Bulletin ASCII WORD OTS 03-18 5/21/03

• FCRA and the FTC

  In testimony before the Senate Committee on Banking, Housing and Urban Affairs, the Director of the FTC Bureau of Consumer Protection gave an overview of the FCRA and noted that the FTC regards consumer education as vital to the FCRA because the statute contains self-enforcing elements, such as the right to dispute inaccurate or incomplete information.Testimony 5/21/03

• Nine Enforcement Actions Announced

  The OCC announced nine new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks located in Maryland, Illinois, North Carolina, Florida, Oregon and Alabama. OCC NR 2003-37 5/20/03

• Stolen Cashier's Checks Alert

  The FDIC had issued an alert regarding outdated cashier's checks that have been stolen from The Bank of Abbeville, Abbeville, South Carolina. The stolen checks are in circulation. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/20/03

• Financial Education Initiative Announced

  The FRB announced a broad initiative to provide consumers with more resources for making smart financial decisions. The program includes the introduction of public service messages, a new brochure, enhancements to the System's financial education web site, and the announcement of upcoming System-sponsored programs and events.FRB PR 5/20/03

• FinCEN Extends Exception to Travel Rule

  FinCEN is giving notice that it is extending, until December 1, 2003, a conditional exception to the Travel Rule that is due to expire on May 31, 2003. The exception permits financial institutions to substitute coded information for the true name and address of a customer in a funds transmittal order. The purpose of the extension is to permit FinCEN to perform a study of the alternatives to continuing the conditional exception. 68FR26996 (txt) 68FR26996 (pdf) 5/19/03

• HOEPA APR Reference Rates for April Released

  The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in April 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, use the yield in effect on the 15th of the month that precedes the month you received the application. FRB Daily Rate    FRB Weekly Rates 5/19/03

• AML Non-cooperative Countries List Updated

  The OCC has updated an Advisory Letter which lists the countries identified by the FFIEC as non-cooperative in the fight against money laundering. OCC AL 2003-4 5/19/03

• FinCEN Issues Final Rule to Amend the Foreign Bank Account Report Requirements

  FinCEN is amending the regulations implementing the Bank Secrecy Act to reflect that enforcement authority with respect to the foreign bank account report requirements of 31 CFR part 103 has been delegated from FinCEN to the Commissioner of the Internal Revenue Service. 68FR26489 (txt) 68FR26489 (pdf) 5/16/03

• FFIEC UBPR User's Guide Online

  The FFIEC has placed the User's Guide for the Uniform Bank Performance Report online. The guide contains basic guidelines for using the UBPR, including methods of analyzing the report, technical information and ratio definitions. Total Report Table of Contents 5/16/03

• T Bill Auction Announcement Delayed

  The Treasury Department has postponed the May 15, 2003 announcement of its weekly 13-week and 26-week bill auctions until further notice. Treasury JS376 5/16/03

• OTS Cost of Funds Reports Released

  The OTS has released a current and a historical National Monthly Median Cost of Funds Ratio to SAIF - Insured Institutions report.Current Report Historical Report 5/16/03

• Tracking Saddam's Money

  The successful joint efforts of government agencies to track down, freeze, and repatriate to the people of Iraq assets that have been systematically looted by Saddam Hussein, his family, and his cronies was described to a House subcommittee by Treasury General Counsel Aufhauser. On March 20, $1.7 billion in Iraqi assets frozen by the 19990 economic sanctions were deposit in a special FRB account. Since March 20, over 1.2 billion addition funds have been identified. Testimony 5/15/03

• Counterfeit Cashier's Checks Special Alerts

  The FDIC has announced that counterfeit cashier's checks drawn on The Jacksonville Bank, Jacksonville, Florida; California National Bank, Century City, California; and Firstbank - West Branch, West Branch, Michigan are currently in circulation. The information has been added to the BOL Alerts & Counterfeits page. 5/15/03

• History Provides Answers to Current Questions

  The answers to many current banking questions including: what activities are incidental to the "business of banking", when do State laws effect a national bank, and if the State law applies who enforces it, are found in the history of the origination of the banking system according to a presentation by OCC General Counsel Williams to the OCC Alumni Association. Speech 5/15/03

• Your Institution Could Be Eligible

  The Community Development Financial Institutions (CDFI) Fund will award $18 million this year in financial incentives through its Bank Enterprise Award (BEA) Program to certain eligible FDIC-insured institutions that comply with the program's requirements and submit an application for consideration. The average award last year was $284,248. FDIC NR Application Information5/15/03

• NCUA Disaster Relief Policy Activated

  The NCUA has activated its disaster relief policy to assist credit unions and members in counties eligible for aid in Alabama, Kansas, Missouri, Oklahoma and Tennessee, where offices and homes were destroyed by multiple tornadoes in the last two weeks. NCUA NR03-0514-2 5/15/03

• OFAC Rulings Online

  OFAC has made available online two Interpretative Ruling entitled "Equipment to manufacture goods which may be sold to Iran" and "Export/aircraft safety (Iran)". OFAC Interpretative Rulings   Equipment Ruling    Export Ruling 5/14/03

• What Is The Color Of Your Money?

  Soon it will be a combination of copper, blue, peach and green. The new $20 bill has been revealed and it contains all those colors, but some are hard to spot on purpose to foil counterfeiters. Read all about the changes and see what the new bill looks like in a BOL Exclusive Article, "All About the New $20." 5/14/03

• Fraud Alert - Internet Payments With Fraudulent Checks

  The OCC has issued a fraud alert regarding fraudulent cashier's and official checks used to make payments to defraud consumers in connection with legitimate sales of goods, primarily over the Internet. If one of the instruments is presented to a financial institution, it is directed to hold the item and call the local FBI office.OCC Alert 2003-8 WORD ASCII 5/14/03

• Administration's International Economic Agenda

  Treasury Secretary Snow outlined the Administration's international economic agenda in a presentation before the House Committee on Financial Services. He noted that rebuilding Iraq and Afghanistan is clearly a key priority for the United States and the international community. Speech 5/14/03

• BB&T/First Virginia Merger Approved

  The Federal Reserve Board has announced its approval of the application and notice by BB&T Corporation, Winston-Salem, North Carolina, to merge with First Virginia Banks, Inc., Falls Church, Virginia, and thereby acquire its banking and non-banking subsidiaries.Order of Approval 5/14/03

• New FRB Working Papers Online

  The FRB has made available online the latest working papers in the Finance and Economic Discussion Series. Topics include, "The Long-Run Relationship between House Prices and Income: Evidence from Local Housing Markets"; "Foreclosing on Opportunity: State Laws and Mortgage Credit"; and "Monetary Policy and the Yield Curve". FRB Working Papers    5/14/03

• Deposit Insurance Reform

  The Treasury Department, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Office of Thrift Supervision have submitted draft legislative language on deposit insurance reform to the U.S. Senate Banking Committee.Summary    Draft Legislation    Joint Agency Letter 5/13/03

• Online Call Report Validation Report Criteria

  The March 2003 Call Report validation criteria has been posted by FFIEC on its Web site.FFIEC 5/13/03

• USA PATRIOT Act Preparedness Checklist

  OTS has issued a checklist for institutions to use for CIP compliance and updating established BSA anti-money laundering requirements. A series of questions aid in the analysis of current BSA/AML programs and assist in the development of new CIP programs. Checklist    CIP Q & A    CEO Memorandum    OTS Release 03-16 5/12/03

• Senior Officers Respond To Survey

  The FRB has released the results of the April 2003 Senior Officer Opinion Survey on Bank Lending Practices. The survey focused on the changes regarding the supply of and demand for bank loans over the last three months.Full Report    Charts pdf    ASCII    Table 1    Table 2 5/12/03

• OCC Closes Wisconsin Bank

  The First National Bank of Blanchardville, Blanchardville, Wisconsin, was closed by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation was appointed receiver.OCC NR2003-35    FDIC PR-47-2003 5/12/03

• Iraq Sanctions Relaxed and UNITA Sanctions Terminated

  Four General Licenses regarding transactions with Iraq have been granted and the President has issued an Executive Order terminating the emergency with respect to the actions and policies of UNITA. For more information, see the summary on the BOL OFAC page. 5/9/03

• Assets Blocked, Entities Added and Removed

  All property and interests in property of four entities, wherever located, have been blocked by OFAC pending a narcotics trafficking investigation. The names have been integrated into OFAC's SDN list with the descriptor, BPI-SDNT. In addition, many entities have been removed from the SDN list as a result of the Executive Order regarding UNITA. For more information, see the summary on the BOL OFAC page. 5/9/03

• CIP Rules Hit Federal Register

  The final rules on Customer Identification Program requirements were published in the Federal Register today. 68FR25089 (txt) 68FR25089 (pdf)5/9/03

• Greenspan On Corporate Governance

  Chairman Greenspan noted that a reputation for honest dealings within a corporation is critical for effective corporate governance, but even more important is the reputation of the corporation itself as seen through the eyes of outsiders. His remarks were made at the 2003 Conference on Bank Structure and Competition, Chicago, Illinois. He also discussed the benefits and risks associated with derivatives plus incentives for effective risk management. Speech 5/9/03

• FCRA Information Sharing Provisions Before Congress

  Congress is evaluating the FCRA provisions regarding the uniform national standards for financial information sharing which are scheduled to sunset at year end. In testimony before the House Committee on Financial Services, Assistant Treasury Secretary Abernathy explained the important role the standards play in the fight against identity theft. Testimony 5/9/03

• FRB Bulletin Articles Online

  Articles from the 2003 FRB Bulletin are available online. The most recent addition, "U.S. International Transactions in 2002", covers the widening of the U.S. trade deficit. May 2003 Bulletin 5/9/03

• First Quarter BIF & SAIF Financials

  The FDIC has released the First Quarter 2003 Executive Management Report regarding the financial results of the BIB and SAIF insurance funds. Executive Management Report 5/9/03

• Ruling Online and SDGT Entries Changed

  OFAC announced that a new Interpretative Ruling is available online and that changes to three former SDGT entries have resulted in new entries being added to the OFAC list. Information regarding the Interpretative Ruling and the OFAC changes can be found on the BOL OFAC page. 5/8/03

• Agencies Seek Comments

  The OCC and the FRB are seeking comments on a proposal to extend for three years without revision a current information collection form, FFIEC 030. Comments are due on or before July 7, 2003.Joint Agency Notice 5/8/03

• Credit Report Shows Gains

  The G.19 Consumer Credit Report for March 2003 had been released by the FRB. FRB G.19 5/8/03

• BIF Year-End Status Projected

  Chairman Powell stated the need for deposit insurance reform while reporting on the projected year-end status of BIF following a meeting of the FDIC Board of Directors. FDIC PR 46-2003 FDIC First Quarter Funds Report PR 45-2003 5/8/03

• Fed Funds Rate Unchanged

  The Federal Open Market Committee left its target for the federal funds rate unchanged at 1-1/4 percent. FRB Press Release 5/7/03

• New Money Unveiled May 13th

  Previously, officials had indicated the new $20 bill would be unveiled March 27th. That date came and went with no unveiling and no explanation, but the new date, May 13th, appears to be a certainty. The new design for the $20 notes will be revealed on that date, and the bills will be in circulation later in the year. The new design will retain current security features, including watermarks similar to the portrait and visible when held up to a light, enhanced security threads that glow under ultraviolet light, microprinting, and color-shifting ink that changes color when the note is tilted. New Money Announcement 5/7/03

• Credit Cards, Cash Payments, and Consent Orders

  Saks Incorporated and an Illinois bank have entered into consent orders with the OCC which require numerous actions be taken to bolster the Bank Secrecy Act compliance of the entities. The actions appear to stem from the way certain credit card transactions were handled, including the receipt of cash payments. Consent Order - National Bank of the Great Lakes; Consent Order - Saks Incorporated 5/7/03

• FDIC Encourages Help to Tornado Areas

  The FDIC is encouraging banks to work constructively with borrowers in affected areas who, because of the tornadoes, are experiencing difficulties beyond their control. The FDIC has prepared guidelines which state that extending repayment terms, restructuring existing loans or easing terms for new loans, if done in a manner consistent with sound banking practices, can contribute to the health of the community and serve the long-term interests of the lending institution. FDIC Guidelines 5/7/03

• May CRA Exams from FDIC

  The FDIC has published its list of banks that will be undergoing CRA exams in May. May 2003 CRA Exam Schedule 5/7/03

• Commercial RE Loan Problems Result in Penalty

  An Illinois banker has been assessed a $20,000 civil money penalty by the FDIC amid allegations he failed to ensure that the bank obtained appraisals before underwriting, approving and funding large commercial real estate loans. Numerous loans were found to have been booked, between September 1999 and January 2001, without timely written appraisals. FDIC PR-43-2003; Order FDIC-03-031k. 5/7/03

• Falsified Docs Lead to Removal and Penalty

  The FDIC issued a removal and prohibition order and imposed a civil money penalty against Daniel J. Schmitt, a director of the Hartford-Carlisle Savings Bank, Carlisle, IA, which was closed by the Iowa Superintendent of Banking on January 14, 2000. The order and penalty stem from allegations that Schmitt falsified documents for two loans disguising the true purpose for which the loan proceeds were ultimately used. FDIC PR-44-2003; Order FDIC-02-089e; Order FDIC-02-088k. 5/7/03

• Freddie and Fannie Release New Form

  A new joint Uniform Residential Loan Application form has been released by Freddie Mac and Fannie Mae. NOTE: The new form is not to be used for applications received prior to January 1, 2004. The Fannie Mae announcement states the new form is the result of changes to Reg C and the USA PATRIOT Act. In recent amendments to Regulation B, the FRB noted that the model loan application form contained in Reg B's Appendix B is issued by Fannie Mae and Freddie Mac. The current Appendix B form should still be followed until the FRB publishes a revised form reflecting ethnicity and racial designations to dovetail with the new Freddie Mac/Fannie Mae form. Revised Application Form Fannie Mae Guide Recent Reg B Amendments 5/6/03

• Corporate Governance and Non-Public Financial Institutions

  The FRB, OCC and OTS have issued a joint statement regarding whether or not the agencies expect small, non-public banking organizations to comply with Sarbanes-Oxley and the corporate governance proposals from the NYSE and NASDAG. FRB Statement    FRB SR 03-08 OCC release 5/6/03

• FinCEN Provides More AML Help to MSBs

  Three guides are available on FinCEN's sight to help the anti-money laundering efforts of Money Services Businesses. The three guides cover Bank Secrecy Act Requirements,Reporting Suspicious Activity, and Money Laundering Prevention. MSB Guides 5/6/03

• Online Consumer Vehicle Leasing Guide

  The FRB has made available on its Web site a quick consumer guide regarding closed-in leases. The guide is designed to help consumers compare offers and negotiate leases that best fit their needs. A sample lease form is included, along with a glossary of common leasing terms. Leasing Guide 5/6/03

• FedLine Web Services Enhanced

  Starting May 12, 2003, several new FedLine services will be available online. They include automated branch set-up, cash orders armored carrier selection and validity edits for currency amounts.FRB Services 5/6/03

• Fake Instruments Alert

  The OCC has issued a Fictitious Financial Instruments Alert regarding worthless sight drafts, bills of exchange, due bills and redemption certificates. Included in the alert are instructions for handling such instruments if they are presented. OCC Alert 5/6/03

• Securities and Commodities AML Proposed Rules Published in Federal Register

  Treasury and FinCEN have published in the Federal Register three separate proposed rules under the USA Patriot Act that would expand anti-money laundering regulation to commodity trading advisors and securities investment advisers, as well as require suspicious activity reporting by futures commission merchants. [This was previously announced on BOL]. Commodities    Futures Commission Merchants    Investment Advisers 5/5/03

• All Assets of Firm Blocked

  All property and interests in property of TRANSPORTING, LLC, wherever located, have been blocked by OFAC pending a narcotics trafficking investigation. Although the company is not now an SDNT, its name has been integrated into OFAC's SDN list. For more information, see the summary on the BOL OFAC page.Summary 5/5/03

• Additional OFAC CMP Information Revealed

  The weekly release of information regarding civil money penalties issued by OFAC now includes the year the violation occurred and more detail on the type of violation. The current report lists two violations by Deutsche Bank A.G. that occurred in 1999 and 2000. OFAC CMP5/5/03

• Deposit Insurance Premiums May Increase

  Chairman Powell, in a presentation before the Nebraska Bankers Association, noted that the Bank Insurance Fund is very close to the 1.25 premium trigger. He indicated that the FDIC can never rule out surprises that would force the FDIC to charge high premiums on the industry at the worst possible time.FDIC PR-40-2003 5/5/03

• Open Meeting Scheduled

  The FDIC has announced that an open meeting of the Board will be held in Washington, D.C. on May 7, 2003. Agenda items include: BIF assessment rates, SAIF assessment rates and a resolution regarding deposit insurance coverage of Living Trust accounts.FDIC Notice 050703 5/5/03

• Online Report Form Instructions

  The instructions for completing the March 030 Form, Foreign Branch Report of Condition, are now available online at the FFIEC website.FFIEC 030 5/2/03

• Small CU Working Group Formed

  NCUA has announce the creation of an internal working group that will identify problems peculiar to small credit unions and suggest possible options to increase their competitiveness and financial stability. NCUA NR03-0502 5/5/03

• New SAR Form

  FinCEN has released a new SAR Form and new Specifications for the Magnetic Media Filing of SARs. Please note the new SAR form is NOT to be used until July 1, 2003. The new forms have added two categories of suspicious activity, Terrorist Financing and Identity Theft, in box 35. The current SAR form will not be accepted after December 31, 2003. SAR Form    Magnetic Media Specifications 5/2/03

• FRB Written Agreement With Ohio Bank

  The Federal Reserve Board on Thursday announced the execution of a Written Agreement by and among The First State Bank of West Manchester, West Manchester, Ohio, the Federal Reserve Bank of Cleveland, and the Ohio Division of Financial Institutions regarding the management and lending policies of the bank.Written Agreement 5/2/03

• $3 Billion Visa/MC Debit Card Settlement

  Just hour before a class action lawsuit was scheduled to go to trial, Visa reached a $2 billion settlement with Wal-Mart and thousands of other retailers who claimed they had been damaged by the forced acceptance of Visa and MasterCard branded debit cards. The retailers also contended were forced to pay "'unjustifiably high fees" on the cards. MasterCard had reached a $1 billion settlement with the retailers earlier in the week. Read more about the case in the "Cases In The News" section of BOL Court Watch where BOL has been monitoring the progress of the case. Cases In The News 5/2/03

• G.5 Foreign Exchange Rates Released

  The FRB has released the May I, 2002 G.5 table which shows the average foreign rates of exchange in April 2003 with comparable figures for other months.FRB G.5 5/2/03

• Comments Make Difference: Altered CIP Rules Released

  The regulators have issued the long awaited final rules implementing section 326 of the USA PATRIOT Act that require financial institutions to establish procedures to verify the identity of new customers. Numerous changes were made to the initial proposal, in part due to the comments received from financial institutions. For an analysis, read the BOL article, "CIP FINAL RULES: 10 Quick Changes" on the USA PATRIOT Act page. Section 326 Final Rules 5/1/03

• HSBC Bank USA Written Agreement

  The Federal Reserve Board has announced the execution of a Written Agreement by and among the HSBC Bank USA, Buffalo, New York, the Federal Reserve Bank of New York, and the New York State Banking Department regarding the bank's compliance with the provisions of the Bank Secrecy Act and Reg H.Written Agreement 5/1/03

• Basel Accord Comments Sought

  The Basel Committee on Banking Supervision has released for comment its third consultative paper on the new Basel Capital Accord. The OCC, FRB and FDIC plan to issue an Advance Notice of Proposed Rulemaking (ANPR) in the next few months. The ANPR will be based on the Committee's paper and will focus on how the U.S. agencies intend to implement domestic changes that reflect the specific nature of U.S. banks and banking. Comments must be submitted by July 31, 2003.Basel Committee    OCC    FRB    FDIC    FDIC FIL-31-2003 5/1/03

• Treasury Issues May 2003 Quarterly Refunding Statement

  The May 2003 Quarterly Refunding Statement was announced by Assistant Secretary Roseboro along with future auction schedule changes regarding the auction of 5-year notes on a mid-monthly basis and the reopening of 10-year notes on an intra-quarterly basis. Treasury JS-223 5/1/03

• Optimism Exists Despite Weak Economy

  Weakness in the economy exists, but there are reasons for optimism according to a report issued by Treasury Borrowing Advisory Committee to the Secretary of the Treasury. Weakness in the key sectors of consumption, investment, and government spending resulted in economic growth nearly three quarter of a point below expectations, but consumer confidence has begun to improve. Treasury JS-224 5/1/03

• Standards for Treasury Check Indorsements and Losses

  The Department of the Treasury Financial Management Service has published an advance notice of proposed rulemaking on revisions to its regulations (31 CFR 240) governing the indorsement and payment of checks drawn on the United States Treasury. The regulations provide how checks may be indorsed, and remedies when checks are lost or stolen, and then subsequently negotiated by someone other than the intended payee. In instances where losses occur, such as when a check bearing a fraudulent indorsement is paid, the regulations provide for the allocation of losses between the Government and indorsers of the check. Txt version of ANPR     PDF version of ANPR 4/30/03

• BANKFIRST Written Agreement

  The FRB has announced the execution of a Written Agreement by and among BANKFIRST Corporation, Sioux Falls, South Dakota, a registered bank holding company, and its subsidiary bank, BANKFIRST, also of Sioux Falls, South Dakota, and the Federal Reserve Bank of Minneapolis regarding banking practices relating to credit card operations. Written Agreement 4/30/03

• Securities and Commodities AML Rules Proposed

  Treasury and FinCEN have issued three separate proposed rules under the USA Patriot Act that would expand anti-money laundering regulation to commodity trading advisors and securities investment advisers, as well as require suspicious activity reporting by futures commission merchants. Treasury JS-333   Investment Advisors    Commodity Trading Advisors    BSA Amendment 4/30/03

• High Marks for NCUA Exam

  The results of a NCUA survey regarding a risk-focused examination program indicate that the program, which was introduced in fall 2002, has been well received. Highest marks were given for examiners' conduct, the overall examination process and effective communication during the examination. NCUA Survey 4/30/03

• Texas Banker Subject of Removal and Civil Money Penalty

  The FDIC has issued a removal and probation order in addition to imposing a $5,000 civil money penalty against former Texas banker, Mary Gonzales. She allegedly made unauthorized loan and credit card advances in violation of bank policies; concealed delinquent loans from the bank's board of directors; issued herself a credit card and increased the credit limit on an existing bank credit card without the necessary approval and in violation of Regulation O; and concealed the failure on her part to pay delinquent payroll taxes. FDIC Pr-38-2003 4/29/03

• Investment Research Scandal Leads to Major Penalties

  The SEC, New York Attorney General, North American Securities Administrators Association, NASD, New York Stock Exchange, and state securities regulators announced the settlement of enforcement actions against ten of the nation's top investment firms resulting in $875 million in penalties and disgorgement. The firms, which included Citigroup Global Markets Inc. f/k/a Salomon Smith Barney Inc.; J.P. Morgan Securities Inc.; and U.S. Bancorp Piper Jaffray Inc.; were alleged to have engaged in acts and practices that created or maintained inappropriate influence by investment banking over research analysts, thereby imposing conflicts of interest on research analysts that the firms failed to manage in an adequate or appropriate manner.Joint Release 4/29/03

• Basel II Risk Management Objectives

  The objectives relating to risk management of the Basel II proposal were discussed by FRB Vice Chairman Ferguson in a presentation at the Risk Management Workshop for Regulators, The World Bank, Washington, D.C. Ferguson Speech 4/29/03

• Treasury Economic Update

  An overview of the current state of the economy was given by Treasury Assistant Secretary Clarida to the Treasury Borrowing Committee of the Bond Market Association. He noted the economy continued to grow over the last three months but at a pace short of its potential. The war in Iraq, higher oil prices, and an unusually severe winter restrained economic activity. Clarida Speech 4/29/03

• Second Quarter $79 Billion Borrowing Expected

  The Treasury Department announced that it expects to borrow $79 billion in marketable debt during the second quarter and to target a cash balance of $45 billion on June 30. The increase in borrowing is due to lower receipts, higher outlays, placement of additional compensating balances and a lower cash balance at the beginning of the quarter. Treasury JS332 Charts 4/29/03

• $72,200 OFAC Civil Penalty Imposed

  OFAC has released its weekly report of civil penalties enforcement activities. The latest report contains the largest civil money penalty imposed against a financial institution since the weekly report was started three weeks ago. A voluntary disclosure by a financial institution of a violation of the export provisions of the Cuba sanction program resulted in the imposition of a settled penalty of $72,200. OFAC 4/28/03

• FinCEN Advisories Withdrawn

  FinCEN has withdrawn Advisory 16 regarding Dominica and Advisory 31 regarding Grenada. The enhanced scrutiny of transactions involving the countries, as called for by the advisories, is no longer necessary. Dominica 16W    Grenada 31W 4/28/03

• FRB G.20 Report

  The FRB has released the February 2003 G.20 Report containing information regarding owned and managed receivables and auto loans terms of credit. G. 20 Report 4/28/03

• FinCEN Responds to Ruling Request

  FinCEN has responded to a request for a ruling that a bank be considered neither a "foreign shell bank" nor a "foreign bank", or, in the alternative, be granted an exemption. FinCEN Ruling 2003-2 4/28/03

• FDIC Corporate Sector Roundtable Held

  The FDIC hosted its second economic roundtable this year, this time for the corporate sector. The focus was on job growth and what can be done to help get the U.S. economy moving forward. FDIC PR-36-2003 4/25/03

• FRB Governor Addresses Loan Guarantee Programs

  In a speech before the National Economists Club, Fed Governor Gramlich addressed the subject of loan guarantee programs. Gramlich Speech 4/25/03

• New Economic Papers Posted

  Three new papers have been posted online by the Federal Reserve as part of the Finance and Economics Discussion Series. They address "Market Structure and Quality", "Spillovers Across U.S. Financial Markets", and "New Evidence on the Interest Rate Effects of Budget Deficits and Debt". 2003 FEDS Papers 4/25/03

• Business Bounce Back Addressed by FRB's Bernanke

  In a speech to the Forecasters Club in New York City, FRB Governor Ben Bernanke lent his perspective to the economy and the issue of whether business investment will bounce back. Bernanke Speech 4/25/03

• FDIC Announces Administrative Enforcement Actions

  The Federal Deposit Insurance Corporation has released a list of orders of administrative enforcement actions taken against banks and individuals in March. The FDIC processed a total of 10 orders in March. These included five cease-and-desist orders, two civil money penalty orders, two terminations of cease-and-desist orders, and one adjudicated decision. PR-37-2003 4/25/03

• SEC Acts on Electronic Filing and Auditor Issues

  The Securities and Exchange Commission voted to require that reports by insiders disclosing their securities holdings be filed electronically with the SEC. It also voted to adopt rules prohibiting company officials from improperly influencing auditors of financial statements. SEC RELEASE 2003-51 4/25/03

• Interagency Internal Audit Guidance Issued

  The FRB, FDIC, OCC and OTS have issued an amendment to their policy statement, Internal Audit Function and its Outsourcing, which provides guidance regarding the independence and effectiveness of an institution's internal audit function.FRB SR 03-5    FRB Statement 4/24/03

• Risks of Weblinking Guidance

  The OTS, OCC, FDIC and NCUA have issued a joint guidance on the risks of weblinking to assist institutions in the identification and managing of the potential risks involved if the institution places weblinks to other websites on its Web Page. This subject was discussed in a Special BOL Compliance Briefing issued yesterday. If you are not receiving the free BOL briefings, sign up here. OTS 03-15    OTS TB 83    FDIC PR-34-2003    FDIC Statement    FDIC FIL-30-2003    NCUA PR    NCUA Letter 03-CU-08    OCC Bulletin 4/24/03

• Guidance Issued Regarding Golden Parachutes

  The FRB has issued a guidance regarding certain restrictions imposed on the issuance of severance packages known as "golden parachutes" and the appointment of any new senior executive officer or director by any institution in a "troubled condition".FRB SR 03-6 4/24/03

• April 2003 Beige Book Issued

  The FRB has published the April 23, 2003 issue of the Beige Book which contains summaries of the economic conditions in each of the twelve Federal Reserve Districts.
  Beige Book 4/24/03

• OCC Gives Bank Go-Ahead for New Transactions

  In Interpretive Letter #962, the Office of the Comptroller of the Currency gave conditional approval for a bank to expand customer-driven financial intermediation transactions in electricity derivatives to include transitory title transfers. OCC Interpretative Letter #962

• OCC Issues Proposed Rule to Amend Regulations Pertaining to Foreign Operations

  The proposed rule would clarify certain regulatory definitions and simplify approval procedures for foreign banks seeking to establish Federal branches and agencies in the United States. These proposed changes will further conform the treatment of Federal branches and agencies of foreign banks to that of their domestic national bank counterparts consistent with the national treatment principles of the International Banking Act. 68FR19949 (txt) 68FR19949 (pdf) 4/23/03

• Flood Violation Civil Money Penalty Assessed

  The FRB has announced the assessment of a Civil Money Penalty in the amount of $3,850 against the First Farmers Bank and Trust, Converse, Indiana. The consent Order of Assessment resulted from alleged violations of Reg H and the National Flood Insurance Act. FRB Order 4/23/03

• OCC Revises Audit Handbook

  The OCC has published a revision to its "Internal and External Audits" handbook which clarifies the expectations of the OCC regarding national bank audits. The update includes changes resulting from the Sarbanes-Oxley Act, new SEC rules and regulations, and the revised "Interagency Policy Statement on Internal Audit and Its Outsourcing". Handbook Introduction   Supplemental Examination Procedures    Appendixes 4/23/03

• Error In Briefing

  In the text of yesterday's Compliance briefing article titled, "BSA Compliance Subject of Written Agreement", the bank involved was misidentified as Pioneer Bank of Denver, Colorado. The correct name of the bank is Premier Bank. BankersOnline.com regrets the error and any confusion it may have caused. 4/23/03

• Help Your MSB Customers

  If you have customers which are Money Services Businesses, you may want to pass along notice to them that FinCEN is making available through its Web site an order form for free materials to help Money Services Businesses understand and comply with new federal laws and regulations on money laundering. FinCEN Order Form 4/23/03

• Double Taxation of Corporate Dividends

  Learn the view of the Treasury Department on this hot topic from the comments of Deputy Assistant Secretary Zerzan before a meeting of the Vineland, New Jersey Chamber of Commerce. He noted that currently the United States is one of only three countries in the developed world that treats dividends as fully taxable. Treasury JS-208 4/23/03

• BSA Compliance Subject of Written Agreement

  The FRB announced a Written Agreement with Premier Bank of Denver, Colorado. The bank is required to establish adequate BSA internal controls, arrange for independent compliance testing, designate a qualified officer responsible for BSA compliance, and conduct regular employee training. In addition, the bank is to retain the services of an independent accounting firm to conduct a complete forensic audit of the bank's BSA compliance since August 1, 2002. FRB Enforcement 4/22/03

• Financial Holding Company List Update

  The FRB has released an update of its Financial Holding Company List which contains those bank holding companies that have elected to be treated as financial holding companies under the provisions of the Bank Holding Company Act. FRB FHC 4/22/03

• FedACH Services Online

  The FRB has announced it is now possible to use the web to track, research and account for an institution's FedACH activity. Starting May 19, 2003, receiving depository financial institutions will also have the ability to return ACH payments and forward change information by way of FedLine for the Web. Operating Circular 4 is being amended effective May 18, 2003. to accommodate the changes. FRB Services FRB Operating Circular 4 4/22/03

• Greenspan Cancer Test Negative

  FRB Chairman Greenspan is being treated for an enlarged prostate, but tests were negative for prostate cancer. He plans to resume work later this week. FRB PR 4/22/03

• April OCC Interpretations and Actions Online

  The OCC has announced that the April 2003 issue of the Corporate Applications report is available online. The report covers Interpretive Letters, No-Objection Corporate Decisions, CRA Decisions and Conditional Approvals.OCC 4/21/03

• Treasury 2002-2003 Priority Guidance Plan Updated

  Treasury has announced the Third Quarterly Update of its 2002-2003 Priority Guidance Plan. The plan is updated to reflect additional guidance that Treasury intends to publish during the plan year. The update contains 45 additional guidance items. Treasury PR Guidance Plan 4/21/03

• OCC Announces 16 Enforcement Actions

  Sixteen Enforcement Actions were announced by the OCC involving five banks and seven individuals. Civil money penalties ranging from $2,000 to $20,000 were assessed. The largest amount was imposed against a loan officer who was also banned from banking for transferring over 2,200 customer loan files via an unsecured Internet connection to a third party. For more information on that matter see our BOL Article, "InfoSec Violations Result in Ban from Banking"   OCC NR 2003-31 4/18/03

• 48 CRA Evaluations Released

  The OCC has released the CRA evaluations for forty-eight national banks. Of the banks evaluated, seven were rated outstanding and forty-one received a satisfactory rating. OCC NR 2003-32 4/18/03

• FDIC Corporate Sector Roundtable

  The FDIC Corporate Sector Roundtable will be held on April 24, 2003, at the JP Morgan Chase Conference Center in New York City. Topics to be discussed include: where we are in the corporate credit cycle; the status of previously troubled industry sectors; and predictions as to which sectors may lead the recovery or experience a new round of problems. FDIC Notice041703 4/18/03

• HOEPA APR Reference Rates for May Released

  The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in May 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, use the yield in effect on the 15th of the month that precedes the month you received the application. FRB Daily Rates   FRB Weekly Rates 4/17/03

• FDIC FIL about OFAC Change

  The Department of the Treasury's Office of Foreign Assets Control has updated its list of approved service providers to Cuba. FDIC FIL-28-2003 4/17/03

• Counterfeit Cashier's Checks Special Alert

  The Federal Deposit Insurance Corporation has announced that counterfeit cashier's checks drawn on Pioneer Bank, Baker City, Oregon, are currently in circulation. The information has been added to the BOL Alerts & Counterfeits page. 4/17/03

• Regulatory Reorganization, Predatory Lending and Preemption

  Learn the views of Comptroller Hawke regarding these important issues from his remarks before the Exchequer Club. He observed the current bank regulatory structure offends all of our aesthetic and logical instincts, but it works. He also indicated the OCC is currently reviewing the applicability to national banks of a state law regarding predatory lending that has been determined by the OTS to not apply to federally chartered saving institutions. Speech    4/17/03

• Money Smart Welcomes DeKalb County Georgia

  The FDIC announced that the DeKalb County Georgia First Accounts program will utilize the Money Smart as the curriculum to educate consumers to improve their ability to make informed choices about financial matters and effectively manage their personal finances. FDIC MS-09-2003 4/17/03

• FFIEC 2002 Annual Report Available Online

  The FFIEC has made its 2002 Annual Report available on its Web site. FFIEC 2002 Annual Report     Other FFIEC Reports 4/17/03

• Proposed AML Action Against Nauru

  FinCEN has announced a notice of proposed rulemaking that would require U.S. financial institutions to terminate correspondent accounts involving Nauru financial institutions. FinCEN PR 68FR18917 4/16/03

• Ukraine's ML Designation Rescinded

  FinCEN has rescinded the designation of the Ukraine as a Primary Money Laundering Concern. However, the existing guidance issued by FinCEN or obligations arising under the Bank Secrecy Act with respect to accounts and transactions involving Ukraine are still in effect. Furthermore, Ukraine remains on the non-cooperative countries and territories list of the Financial Action Task Force. FinCEN PR 4/16/03

• OFAC Change FIL

  The FDIC has issued a FIL notifying state-chartered banks about the March 27 additions to the OFAC list of Specially Designated Narcotics Traffickers. [The OFAC change was previously announced on BOL.] FDIC FIL-27-2003 Attachment 4/16/03

• Additional Terrorism Risk Insurance Regulations Announced

  The Treasury Department has announced the second set of regulations under the Terrorism Risk Insurance Act of 2002. The regulations address the disclosure requirements, the "make available" requirements, and the participation of state residual market insurance entities and state workers' compensation funds under the Act. Treasury PR   
  Terrorism Risk Insurance Program 4/16/03

• FRB G.17 Report Released

  The FRB has released the April 15 edition of the G.17 Industrial Production and Capacity Utilization Report. FRB G.17 4/16/03

• Marketing to Minority Customers Discussed

  Comptroller Hawke, in a presentation before the Consumer Bankers Association, noted that that the banks that have been most successful in minority communities are those that took time to research the market and to develop local partnerships. He also observed that banks should not underestimate the willingness of low-income and minority customers to obtain banking services electronically.
  OCC NR2003-29   Speech 4/16/03

• FDIC Advisory Committee To Hold Meeting

  The FDIC announced that meeting of the FDIC Advisory Committee on Banking Policy will be held on April 22 at the FDIC's Seidman Center in Arlington, Virginia. Presentations involving issues affecting the FDIC's regional and field structure; effective supervision and capital regulation; and the ongoing Future of Banking Study will be discussed at the meeting which is open to the public. FDIC PR33-2003    Advisory Committee Information 4/16/03

• State Profiles From FDIC

  The FDIC has released the Spring 2003 update of banking and economic conditions for each state.
  FDIC Profiles 4/16/03

• OFAC Civil Penalties Revealed

  OFAC has made its weekly release regarding OFAC violations and the resulting civil penalties or informal settlements. The only bank listed, the State Bank of India, was cited with a Yugoslavian funds transfer violation resulting in a $5,500 settlement. (For an article about the more extensive penalties announced the prior week, see BOL's article "Lessons from OFAC Civil Penalties") OFAC Penalties 4/15/03

• Revised OCC Manuals Available Online

  The OCC has revised the "Change in Bank Control" and "Branch Closings" booklets in the Licensing Manual series and placed them on the OCC Web site. Change in Bank Control     Branch Closings 4/15/03

• New York City Joins Money Smart

  The FDIC has announced that New York City has join the Money Smart Alliance Program and the Office of the City Comptroller is hosting Train-the-Trainer workshops for volunteer instructors. FDIC MS-088-2003 4/15/03

• OCC Issues Interim Rule to Permit National Banks to make any Class of Licensing Filings Electronically

  Its purpose is to facilitate the expansion of the OCC's e-Corp program. The e-Corp program, which began as a pilot project to enable participating national banks to make certain types of licensing filings electronically, has been made available to all national banks through the OCC's National BankNet web site. The rule furthers the OCC's objectives of reducing regulatory burden for national banks and improving the agency's efficiency in processing filings through increased use of electronic technology. 68FR17890 (txt) 68FR17890 (pdf) 4/14/03

• Tutorial on LOMAs and LOMR-Fs

  On FEMA's Web site, you can now access a tutorial series that explains the Letter of Map Amendment (LOMA) and Letter of Map Revision Based on Fill (LOMR-F) application processes, including all necessary forms and information. There is also an online tool to complete portions of the required forms for single-lot/structure requests. LOMA / LOMR-F Tutorial Series 4/14/03

• Comment Online On FRB Proposals

  The FRB has issued for comment a proposal to extend for three years the following reports: Report of Transaction Accounts, Other Deposits, and Vault Cash (FR 2900); Annual Report of Total Deposits and Reservable Liabilities (FR 2910a); Report of Repurchase Agreements (RPs) on U.S. Government and Federal Agency Securities with Specified Holders (FR 2415); Monthly Survey of Industrial Electricity Use (FR 2009a,b,c); without revision: Allocation of Low Reserve Tranche and Reservable Liabilities Exemption (FR 2930/2930a); Report of Foreign (Non-U.S.) Currency Deposits (FR 2915); and the discontinuation of: Report of Certain Eurocurrency Transactions (FR2950/2951). The closing date for comments is June 17, 2003 and comments may be submitted online. Proposal    Electronic Comment Form 4/14/03

• FinCEN's Anti-Terrorism Activities

  Learn about how the role of FinCen has expanded to combat terrorism from the comments of Director Sloan before Subcommittee on Oversight and Investigations. He observed that the financial channels of terrorism have created an urgency for seeking greater cooperation among governments, law enforcement, regulators and regulated industries to share and disseminate information. Speech 4/14/03

• IRS To Handle BSA FBAR Filing Compliance

  The IRS and FinCEN announced an agreement under which FinCEN delegated its BSA enforcement authority for Foreign Bank and Financial Account reporting to the IRS. IRS Release 4/11/03

• FFIEC 002 Report Form Online

  The March 2003 FFIEC 002 Report of Assets and Liabilities of U. S. Branches and Agencies of Foreign Banks and the Instructions for Preparation have been placed on the FFIEC Web page. FFIEC 002     Instructions 4/11/03

• How Did Banks Post Record 2002 Earnings?

  Banks posted record earnings of more than $100 billion in 2002. FDIC Chairman Powell provides his insight on how this was accomplished in spite of a sluggish economy in remarks before the Federal Reserve Bank of Atlanta. Speech 4/11/03

• More on Basel II

  Learn the implications of Basel II for second tier and community banks from a presentation by FRB Governor Olson at the 2003 Banking Institute, Center for Banking and Finance, of the University of North Carolina. He noted it would be as inappropriate to require the smallest banks to adopt techniques designed for megabanks as it would to limit the largest banks on the basis of the capacity and capability of the smallest.Speech 4/11/03

• FDIC's First Quarter Activities Revealed

  The FDIC has published its fourth Letter to Stakeholders, which reports priorities and activities for the first quarter of 2003. The FDIC's three priorities for 2003 - stability, sound policy, and stewardship are addressed.FDIC FIL-26-2003     Letter 4/11/03

• Importance of Bond Auctions Discussed

  The important role the auction process plays in reducing the cost of borrowing was explained by Treasury Deputy Assistant Secretary Bitsberger in remarks to the Bond Market Association. He noted that on a daily basis approximately $350 billion in Treasuries change hands and last year $3.8 trillion in securities were auctioned. Treasury JS-173 4/11/03

• The Ugly Faces of Identity Theft

  The consequences this crime has on its innocent victims are discussed by Treasury Assistant Secretary Abernathy at the 2003 Banking Institute of the University of North Carolina School of Law Center of Banking and Finance. He remarked that a crook can take a person's good name and use it to open new accounts that they know nothing of, with the statements going to places they have never been, so that weeks and months pass without their knowledge of the fraud. In addition, it can take victims as many as 175 man hours to clear their name and records. Treasury JS-177 4/11/03

• Federal Register Publishes Business Continuity Planning Post-September 11

  Learn the recommendations of the FRB, OCC and SEC in the ""Interagency Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System" issued jointly by the agencies. [This was previously announced on BOL] 68FR17809 (txt) 68FR17809 (pdf) 4/11/03

• FinCEN Publishes AML Proposal for RE Closings and Settlements

  Under the USA PATRIOT Act, the definition of "financial institutions" subject to the AML program requirement was expanded to include persons involved in real estate closings and settlements. In this advanced notice of proposed rulemaking, FinCEN solicits comments relating to applying the AML program requirement to such activities. 68FR17569 (txt) 68FR17569 (pdf) 4/10/03

• FDIC Updates Call and Thrift Reports Instructions

  The FDIC has published a March 2003 update to the Reports of Condition and Income Instructions for report forms FFIEC 031 and 041. FDIC Resources    Call Report Instruction Book    Forms 4/10/03

• FRB Basel II Update

  The Basel Committee has proposed the implementation of Basel II to replace the current Basel I. Learn the views of FRB Vice Chairman Ferguson regarding the status of the proposal and where it is headed. In comments before the Risk Management Association's Conference on Capital Management, he remarked that the FRB concluded that the greatest potential benefit of Basel II was found in the most advanced versions--the Advanced IRB for credit risk and the AMA for operational risk. Speech 4/10/03

• FDIC CRA Examination Results

  The Federal Deposit Insurance Corporation has issued its monthly list of state nonmember banks recently evaluated for compliance with CRA. The list covers evaluation ratings that the FDIC assigned to institutions in January 2003. FDIC PR3103    FDIC CRA List 4/9/03

• Credit Card Issuer Fraud Settlement

  The FTC announced that Robert Barr and Candace Rodriguez, principals of Westcal Equipment, doing business as Pioneer First and PF Member Services, Inc., have agreed to settle federal charges that they engaged in fraudulent business practices. The defendants advertised nationally on cable TV the Pioneer First Platinum credit card which guaranteed a $5,000 credit limit and 0 percent interest for 12 months to anyone who was a legal U.S. resident, at least 18 years old, and had a checking account. Applicants were required to pay a $ 189 fee for a catalog card that did not function as a credit card. FTC Release    Order 4/9/03

• Business Continuity Planning Post-September 11

  Learn the recommendations of the FRB, OCC and SEC in the ""Interagency Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System" issued jointly by the agencies. Paper - FRB    OCC    SEC   FRB PR    OCC Release 2003-28    OCC Bulletin 2003-14    SEC PR2003-45 4/9/03

• Act Authorizes Check Processing Technology

  Congress is considering the Check Clearing for the 21st Century Act which removes existing legal barriers to the use of new technology in check processing. Learn the opinion of the FRB in the testimony of Vice Chairman Ferguson before a House subcommittee. He indicated the Act will improve the efficiency and reduce the cost of the nation's check collection system while providing better services to bank customers. Testimony 4/9/03

• InfoSec Compromised - Bankers Barred and CMP Assessed

  The OCC has permanently barred two former bank officers from banking and assessed civil money penalties of $20,000 and $10,000. James Earl Smith and Vicki Boutilier, who were officers of Grand Valley National Bank, Grand Junction, Colorado, emailed over 2,220 customer loan files to a third party. In addition to the permanent removals and civil money penalties, if Mr. Smith or Ms. Boutilier apply for a job where they would be handling NPI they are required to disclose the enforcement action to future employers. Read our article: "InfoSec Violations Result in Ban from Banking"    OCC NR 2003-27    Smith Consent Order    Boutilier Consent Order 4/8/03

• OFAC Change Bulletin

  The Treasury issued an OFAC change designating KHAN RESEARCH LABORATORIES, Pakistan, as subject to the import ban of Weapons of Mass Destruction Trade Control Regulations and made available a redacted letter on the OFAC Web site. The information has been placed on the BOL OFAC page. Treasury 20030407 4/8/03

• FDIC Issues Alert in Stolen $1,000,000 Checks

  The Federal Deposit Insurance Corporation announced that six $1,000,000 official checks drawn on Interbank of New York, New York, New York, and payable through Huntington National Bank, Columbus, Ohio, were stolen. In addition, counterfeit cashier's checks drawn on both the Bank of Mount Hope, Mount Hope, West Virginia, and the Affinity Federal Credit Union, Basking Ridge, New Jersey, are in circulation. The information has been added to the BOL Alert & Counterfeits page. 4/8/03

• February G.19 Report Released

  The Federal Reserve Board has issued the February 2003 G.19 Consumer Credit Report which indicates that consumer credit rose at an annual rate of 1 percent in February following an 8-1/2 percent increase in January. FRB Release 4/8/03

• Business Method Patents

  Learn about the public policies issues regarding business method patents from a presentation by FRB Vice Chairman Ferguson before the 2003 Financial Markets Conference in which he discussed a patent that was recently issued for a "system and method for conducting web-based financial transactions in capital markets." Speech 4/8/03

• OCC Quarterly Journal Online

  The June, September, and December 2002 issues of the Quarterly Journal are now available online and contain information ranging from the "Condition and Performance of Commercial Banks" to staff interpretations. Quarterly Journal 4/8/03

• OFAC Civil Money Penalties Revealed

  The Office of Foreign Assets Control has published its first set of OFAC civil penalties data on the Internet. This was done pursuant to a rule recently adopted by OFAC which calls for publication of penalty information every two weeks. [This was previously announced on BOL] OFAC 4/7/03

• FinCEN 314(a) Response

  FinCEN has posted on its Web site their response to the BOL 314(a) Information Request letter. [This was previously announced on BOL] FinCEN Response 4/7/03

• Online FFIEC March 31 Reporting Forms

  The FFIEC has made the following March 31, 2003 Reporting Forms available online: Form 009, Form 009a, Form 031 and Form 041. Form 009,    Form 009a,    Form 031,    Form 041,    Instructions    4/7/03

• FTC Fights Pretexting

  The FTC's Annual Report to Congress features details of four enforcement actions filed against companies engaged in "pretexting" (obtaining a consumer's financial information by false pretenses). FTC Annual Report 4/7/03

• Regulators Clarify GLB Section 305 Disclosures

  Responding to a request from the American Bankers Insurance Association and the American Bankers Association, the regulators indicate the disclosures required by section 305 of the Gramm-Leach-Bliley Act are not mandatory with respect to renewals of insurance policies sold prior to October 1, 2001. FDIC FIL-25-2003 4/7/03

• CRA Investment Guide

  The FDIC has announced the issuance of a Community Development Investment Guide which provides information on permissible and CRA-qualified investments for financial institutions. Guide 4/7/03

• Greenspan Discusses Market Economics

  Chairman Greenspan spoke before the 2003 Financial Markets Conference of the Federal Reserve Bank of Atlanta. He commented on the importance of state protection of individual rights to own property and the ways information technology has improved the ability of businesses to identify and address economic imbalances. Speech 4/7/03

• Check Truncation Act Creates "Substitute Check"

  Congress is conducting hearings on the proposed Check Truncation Act. Learn about some of its provisions from the testimony of FRB Vice Chairman Ferguson. He noted, "The proposed legislation facilitates check truncation by creating a new negotiable instrument called a "substitute check," which would permit banks to truncate the original checks, to process the check information electronically, and to print and deliver substitute checks to banks and bank customers that want to continue receiving paper checks." FRB Testimony 4/04/03

• Greenspan Stresses Importance of Financial Education

  FRB Chairman Greenspan stated, "Fostering education that will enable individuals to overcome their reluctance or inability to take full advantage of technological advances and product innovation in the financial sector can increase economic opportunity", during a presentation before the JumpStart Coalition's Annual Meeting in Washington, D.C. Chairman's Speech 4/04/03

• FTC Combats Identity Theft

  The FTC is utilizing many different approaches to combat identity theft ranging from consumer education to bring enforcement actions against entities that fail to protect personal information. Learn more from the testimony of FTC officials which summarize the actions of the agency regarding identity theft. FTC PR ,     Presentation 1    Presentation 2 4/04/03

• Reg Z Commentary Changes Published in Federal Register

  The revisions cover credit card- related fees, replacement of cards, disclosure of private mortgage insurance premiums and the selection of Treasury security yields for determining whether a mortgage loan is covered by Reg Z. [The change was previously announced on BOL] 68FR16185 (txt) 68FR16185 (pdf) 4/03/03

• FinCEN Responds To BOL 314(a) Letter

  FinCEN Director James Sloan directly responded to the letter BOL sent to him last week containing comments and suggestions from BOL Users regarding 314(a) search requests. His response addressed questions ranging from formatting issues to the method of transmission of the requests. Among the items of interest to all financial institutions was his statement, "FinCEN is in the process of completely redesigning the 314(a) system to ease the burden on the financial institutions." BOL Letter,      FinCEN Response 4/03/03

• Counterfeit Checks Special Alert Issued by FDIC

  The Federal Deposit Insurance Corporation has announced that counterfeit cashier's checks drawn on Lorain National Bank, Lorain, Ohio and counterfeit official checks drawn on Alpine Bank, Rifle, Colorado and The Columbia Bank, Ellicott City, Maryland are currently in circulation. The information has been added to the BOL Alerts & Counterfeits page. FDIC SA-18-2003 4/03/03

• OFAC Change FIL

  The FDIC put out an FIL notifying state-chartered banks about the March 21 changes to the OFAC SDN list. [The OFAC change itself was previously announced on BOL] FDIC FIL-24-2003 4/03/03

• Considering the Elimination of Mexican Remittance Fees?

  Read the comments of a Treasury Official applauding Bank of America's announcement that it has reduced its remittance fees for non-customers to send money to Mexico. Treasury JS-155 4/03/03

• House Passes FDIC Reform Act - Regulators' Comments

  FDIC Chairman Powell Treasury stated, "We're pleased the House resoundingly passed a deposit insurance reform bill today that is good for the American people, good for our country's banking industry and good for the FDIC." Treasury Under Secretary Fisher also supported the action and commented, "We share the goals of improving the operation of the system to ensure its long-term strength and soundness, promoting the important role of banks in our nation's economic growth." FDIC PR 30-2003     Treasury JS-154     4/03/03

• G.15 Foreign Exchange Rates For March 2003

  The FRB has issued the March 2003 edition of the monthly G.15 Foreign Exchange Rates Statistical Release. FRB Release 4/03/03

• Sarbanes-Oxley Compliance Required To List Stock

  The Securities and Exchange Commission has adopted rules directing the national securities exchanges and national securities associations to prohibit the listing of any security of an issuer that is not in compliance with the audit committee requirements established by the Sarbanes-Oxley Act of 2002. SEC PR 2003-43 4/2/03

• Race Discrimination Fair Lending Models Reviewed

  An OCC study on race discrimination in mortgage lending utilized information obtained during fair lending examinations to replicating a bank's underwriting process. It found the use of variables customarily omitted from fair lending models would have affected estimates of the effect of race on mortgage decisions, predictions of the probability of denial, and identification of outliers for manual review. OCC Workpaper 4/2/03

• FFIEC Names New Officers

  OTS Director James Gilleran has been named Chairman and NCUA Chairman Dennis Dollar has been named Vice Chairman of FFIEC.
  FinCEN PR 4/2/03

• FDIC Transmits 3/31/03 Call Report Materials

  The FDIC has transmitted materials relating to the upcoming March 2003 Call Reports. Certain revisions to the Call Report are scheduled to take effect this quarter. The principal changes involve the reporting of insurance-related income, the transactional capability of bank Web sites, credit enhancements for securitizations, accrued fees and finance charges on credit cards at banks with significant credit card activity, the fair values of derivatives at small banks with such contracts, and allocated transfer risk reserves. For the March 31, 2003, report date only, banks may report a reasonable estimate for any new or revised item for which the requested information is not readily available. FDIC FIL-23-2003 4/1/03

• Contact Persons for PATRIOT Act Section 314(a)

  Beginning this quarter, the banking agencies will collect on the Call Report contact information for the persons who are in charge of your bank's anti-money laundering searches under Section 314(a) of the USA PATRIOT Act. FDIC FIL-23-2003 4/1/03

• FRB Rounds Up Personal Financial Resources

  The Federal Reserve Board launched a new Web site which brings together resources from various Federal Reserve District Web sites dealing with personal financial matters. Subjects range from economic literacy to protection against fraud and scams.FRB Personal Financial Information 4/1/03

• FRB Financial Services Updates Web Site

  On the updated Web site for FRB Financial Services, they have streamlined common tasks and provided more intuitive navigation. They have also updated the look to reflect their commitment to providing reliable and consumer-focused financial service.FRB Financial Services 4/1/03

• FRB Agricultural Finance Databook Updated

  The Federal Reserve Board has released the March 2003 E.15 Agricultural Databook which contains farm loan characteristics, selected quarterly reports of condition, credit conditions and land values.FRB Release 4/1/03

• More Regulatory Relief Act Information

  Learn more about the Financial Services Regulatory Relief Act of 2003 from the testimony of OCC First Senior Deputy Comptroller and Chief Counsel Julie Williams before the House Subcommittee on Financial Institutions and Consumer Credit.Testimony 4/1/03

• Reg Z Commentary Changes Take Effect April 1

  The Federal Reserve Board issued a final rule revising the official Reg Z commentary.The revisions cover credit card- related fees, replacement of cards, disclosure of private mortgage insurance premiums and the selection of Treasury security yields for determining whether a mortgage loan is covered by Reg Z. The revisions are effective April 1, 2003 and the date for mandatory compliance is October 1, 2003. FRB PR20030328 Final Rule 3/31/03

• Access to Telecommunications in the Event of Disaster

  Qualifying institutions may seek sponsorship for the Telecommunication Service Priority program. That program would give critical private-sector entities access to telephone service in the event of an emergency. OCC Bulletin 2003-13 3/31/03

• Online Resource For Financial Research Announced

  The Federal Reserve Board announced the launch of an online resource for researchers, educators, program directors, and others interested in advancing financial education programs. The Financial Education Research Center was developed to promote excellence in financial education by encouraging research and disseminating information. FRB PR20030328 Research Center. 3/31/03

• Chinese Version Of FDIC's Money Smart Introduced

  FDIC has announced the introduction of a Chinese version of its Money Smart program. Vice Chairman Reich also announced that the program will be available in Korean and Vietnamese later this year. Announcement 3/31/03

• FFIEC Publishes Country Exposure Release

  The E16 Country Exposure Statistical Release has been published on the FFIEC Web site.FFIEC E16 3/31/03

• FRB Announces Fifth Third Agreement

  The Federal Reserve Board announced the execution of a Written Agreement by and among Fifth Third Bancorp, Cincinnati, Ohio; the Fifth Third Bank, Cincinnati, Ohio; the Federal Reserve Bank of Cleveland; and the State of Ohio Department of Commerce, Division of Financial Institutions. Written Agreement 3/28/03

• OCC Announces Decision and Agreements

  The Office of the Comptroller of the Currency announced a Decision regarding a Notice of Change in Bank Control and entering into a Formal Agreement with Household Bank (SB), National Association, Las Vegas, Nevada and the Termination of a Formal Agreement accompanied by the entering into an Operating Agreement with Direct Merchants Credit Card Bank, N.A., Scottsdale, Arizona.Household Change in Control   Household Formal Agreement    Direct Merchants Termination    Direct Merchants Operating Agreement 3/28/03

• OFAC Adds New Cali Cartel Leaders & Businesses

  The Office of Foreign Assets Control added the names of two Cali Cartel leaders, twenty eight entities and twenty eight individuals to its list of Specially Designated Narcotics Traffickers. The drug cartel businesses added to the list of SDNTs today are all determined to be owned or controlled by Cali Cartel leaders. The information has been placed on the BOL OFAC page. Treasury JS-138 3/28/03

• Treasury Official Highlights Iraqi Assets Actions

  The keynote address of the Securities Industry Association's Anti-Money Laundering Compliance Conference was delivered by Treasury General Counsel David D. Aufhauser. He reported that, "To date, more than 1,669 countries have pledged to block terrorist assets and, importantly, have agreed to pursue the intermediaries who facilitate the transfer of terrorist funds" and regarding Iraqi assets, "Hundreds of millions of dollars of previously unknown illegal proceeds have been uncovered abroad in a matter of days, and are now subject to seizure." Address 3/28/03

• Regulators Testify Before Subcommittee

  The Financial Services Regulatory Relief Act of 2003 is in the works. Learn more about it from testimony delivered by Federal Reserve Board Governor Mark W. Olson and Federal Deposit Insurance Corporation General Counsel William F. Kroener, III before the House Subcommittee on Financial Institutions and Consumer Credit of the Committee on Financial Services. Olson's Testimony    Kroener's Testimony 3/28/03

• OTS Urges Equal Thrift Security Law Treatment

  Testifying before the House Financial Services Subcommittee on Financial Institutions, the Office of Thrift Supervision Chief Counsel Carolyn Buck recommended the elimination of disparate treatment between thrifts and banks under the Investment Advisers Act and the Securities Exchange Act of 1934.Counsel Buck's Testimony 3/28/03

• NCUA Issues Business Lending Rules

  The National Credit Union Administration Board has issued a proposed rule updating member business lending regulations for federally insured credit unions and a final rule revising federal credit union chartering and field of membership rules. Proposed Lending Rule     Revision To Membership Final Rule     Statement of Chairman Dollar    Statement of Vice Chairman Johnson     Statement of Board Member Matz 3/28/03

• FDIC Announces 12 Enforcement Actions

  The Federal Deposit Insurance Corporation has released a list of twelve enforcement actions taken against banks and individuals in February, 2003. They include two cease-and-desist orders, two removal-and-prohibition orders, five civil money penalty orders, two terminations of cease-and-desist orders, and one termination of a suspension-and-prohibition order.FDIC PR-28-2003 3/27/03

• NCUA Announces Measures To Fight Brokered CD Fraud

  The National Credit Union Administration announced a plan to increase the agency's oversight and better protect credit unions from brokered CD fraud. The plan involves requiring call report data to contain outstanding balances of brokered CDs, identification of credit unions with high concentrations of brokered CDs, additional guidance regarding due diligence reviews of brokers, the enhancement of AIRES investment work papers and additional training for examiners.NCUA NR03-0326 3/27/03

• FDIC Warns of Counterfeit Official Check Scam

  The Federal Deposit Insurance Corporation has issued a Special Alert which provides a general outline of a nationwide scam involving counterfeit official checks. Customers and financial institutions have sustained losses from the fraudulent transactions. The scam involves unsuspecting sellers of high dollar items who receive counterfeit official checks as payments for the sale items. The counterfeit checks are payable in amounts that exceed the sale price and the seller is asked to deposit the counterfeit item and remit the excess funds by wire or cashier's check.FDIC SA-17-2003 3/27/03

• FDIC Chairman Discusses Access To Capital in Emerging Markets

  Federal Deposit Insurance Corporation Chairman Powell spoke to participants at the National Community Investment Fund Annual Network Conference, Washington, D.C. The Chairman noted, " Banks that reach out to establish relationships with consumers participating in fringe financial services may be able to reap the rewards of cultivating new, full-service customers; building relationships that will improve with their economic circumstances." FDIC PR-2003-27 3/27/03

• FDIC and CSBS Join Forces on Money Smart Program

  The Federal Deposit Insurance Corporation and the Conference of State Bank Supervisors announced that CSBS will promote and distribute the Money Smart financial education curriculum to each of the nation's state banking departments. FDIC MSPR-0006-2003 3/27/03

• FDIC Issues FYI Regarding Derivatives Risk

  The Federal Deposit Insurance Corporation has issued an electronic bulletin which summarizes the FDIC's analysis of the derivatives risk in commercial banking.FDIC FYI-032603 3/27/03

• FRB Releases Household Debt-Service Burden Data

  The Federal Reserve Board has issued a statistical release of the household debt-service burden, which is an estimate of the ratio of debt payments to disposable personal income. Federal Reserve 3/27/03

• Secretary Snow Reacts to Budget Resolution Action

  Treasury Secretary Snow commended the passage of a budget resolution by the Senate, but noted the President's plan is still the best way to create jobs, provide economic security to American workers and families, and grow the economy for our future.Treasury JS135 3/27/03

• OCC Issues Notice Of Issuance 314a Information Request Guidance

  The Office of the Comptroller has given notice to all national banks of the issuance of a FinCEN guidance regarding 314a Information Requests. The FinCEN notice was previously posted on Top Stories.OCC Alert 2003-6 3/26/03

• FTC Announces Calendar for Implementation of the National Do Not Call Registry

  The Federal Trade Commission released its schedule for creating and implementing the national do not call registry, which will give consumers a choice about whether to receive most telemarketing calls. Beginning in July, consumers will be able to put their telephone numbers on the national registry, which telemarketers subsequently will be required to access. As of October, it will be illegal for most telemarketers to call a number listed on the registry.FTC News Release 3/26/03

• FED Releases Quarterly Fedwire Data

  The Federal Reserve Board has released the 4th Quarter 2002 Fedwire and National settlement Services data. Federal Reserve Report 3/26/03

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

  The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 40 and 41), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:SA-16-2003 3/26/03

• 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 by adding the names of certain members of the Government of Zimbabwe and other related persons. [This was previously announced on BOL] FDIC:FIL-22-2003 3/26/03

• FDIC and America's Community Bankers to Promote Financial Education Through ACB Member Banks Nationwide

  The FDIC and America's Community Bankers (ACB) announced that the two organizations will promote financial education through ACB's member banks across the country. The announcement was made by Don Powell, Chairman of the FDIC, and Diana Casey Landry, President and CEO of ACB, at a signing ceremony held at the FDIC's headquarters in Washington, DC. FDIC:MS-005-2003 3/26/03

• FRB Governor Kohn Says Inflation Targeting Is Not Necessary

  In a speech at the National Bureau of Economic Research Conference on Inflation Targeting, Bal Harbour, Florida, Federal Reserve Board Governor Kohn took issue with comments made at the same conference by Marvin Goodfriend, Senior Vice President, Federal Reserve Bank of Richmond, who suggested that the United States would benefit from the adoption of an inflation targeting policy. Kohn stated "the success of U.S. monetary policy has in large part derived from its ability to adapt to changing conditions--a flexibility that likely has benefited from the absence of an inflation target". Kohn's Speech     Goodfriend's Presentation 3/25/03

• OCC Names Deputy Comptroller For Credit Risk

  The Office of the Comptroller of the Currency announced that Barbara J. Grunkemeyer has been named Deputy Comptroller for Credit Risk. She will serve as the Comptroller's principal advisor on credit risk facing the national banking system. OCC NR2003-25 3/25/03

• FinCEN Clarifies Section 314(a) Search Issues

  FinCEN has issued a notice to financial institutions regarding the 314(a) search requests that comes as a great relief. The notice states that if a search request extends beyond the general search requirements, an institution is not required to conduct the expanded search at this time if it can not be conducted electronically. It also notes that the programming problem which prohibited the inclusion of all aliases on the consolidated index has been corrected. Future indexes should include all subjects and aliases requested in the individual subject information forms. FinCEN Notice OCC: ALERT 2003-6 3/24/03

• President Bush Vests Seized Iraqi Assets

  President Bush has issued on Executive Order which vests in the United States all assets of the Iraqi Government previously seized and held by financial institutions. The Secretary of the Treasury is directed to develop rules and regulations to carry out the provisions of the Executive Order. A link to the text of the Executive Order has been placed on the BOL OFAC Page. Executive Order 3/24/03

• Treasury Adds Cali Cartel Entities to OFAC List

  The Treasury Department's Office of Foreign Assets Control added the names of nine businesses owned or controlled by Cali Cartel leaders and eight individuals to its list of Specially Designated Narcotics Traffickers. The information has been placed on the BOL OFAC page. 3/24/03

• SEC Proposes Amendment to Sarbanes-Oxley CEO Certification

  The Securities and Exchange Commission has proposed amendments to its rules and forms which require companies provide corporate officer certifications under the Sarbanes-Oxley Act of 2002 as exhibits to periodic reports. SEC NR 2003-39 Proposed Amendments 3/24/03

• San Francisco Fed and Barnes Banking Company Enter Written Agreement

  The Federal Reserve Bank of San Francisco announced the entering into a written agreement with Barnes Banking Company, Kaysville, Utah. The Bank has agreed to enhance and improve its policies and procedures regarding the Currency and Foreign Transaction Reporting Act, the Bank Secrecy Act and Regulation H.Federal Reserve PR20030321 Written Agreement 3/24/03

• OCC Unveils Online Applications

  The Office of the Comptroller of the Currency announced a new service utilizing the e-Corp system which will allow national banks to electronically complete and submit branch and relocation applications.OCC NR 2003-24 3/24/03

• OCC March 2003 Corporate Applications Released

  The Office of the Comptroller of the Currency has released the March 2003 edition of actions taken on corporate applications received by the OCC.OCC Corporate Applications 3/24/03

• Counterfeit Checks Alert Issued by FDIC

  The Federal Deposit Insurance Corporation has learned that counterfeit trust checks drawn on McAllen National Bank, McAllen, Texas and counterfeit official checks drawn on Astoria Federal Savings and Loan Association, New York, New York are currently in circulation. The information has been added to the BOL Alerts & Counterfeits page FDIC SA-15-2003 3/24/03

• OFAC Issues Interim Rule to Amend the Cuban Assets Control Regulations

  The Office of Foreign Assets Control of the U.S. Department of the Treasury is amending the Cuban Assets Control Regulations, part 515 of chapter V of 31 CFR, to implement the President's Initiative for a New Cuba and to make certain technical changes and clarifications. 68FR14141 (txt) 68FR14141 (pdf) 3/24/03

• FTC Halts Internet Mortgage Scam

  The Federal Trade Commission filed charges against 30 Minute Mortgage, Inc. alleging the company utilized a spamming operation that conned consumers into sharing personal financial data. The complaint contends there were violations of the FTC Act, the Truth in Lending Act, the Gramm-Leach-Bliley Act, and the FTC's Privacy Rule. The court is asked to bar the illegal practices permanently and order the return of ill-gotten gains. The assets of the company have been frozen, and it has agreed to halt the alleged deceptive practices until the court issues a final ruling on the FTC's allegations. 3/21/03

• Six Enforcement Actions Announced By OCC

  The Office of the Comptroller of the Currency announced enforcement actions against Bank of Communications, New York Branch, New York, New York; Surety Bank, National Association, Fort Worth, Texas; Cumberland Valley National Bank & Trust Company, East Bernstadt, Kentucky; First National Bank of Northern Kentucky, Fort Mitchell, Kentucky; First National Bank of Littlefield, Littlefield, Texas; and James T. Lee, Littlefield, Texas. OCC NR2003-22 FTC Press Release Complaint Order 3/21/03

• U.S. Confiscates $1.74B in Iraqi Assets

  There's nothing about it yet on the OFAC page, but on 3/20/03 President Bush issued an Executive Order confiscating non-diplomatic Iraqi government assets in the United States. The Order authorizes Treasury to marshal the assets, and to use the funds for the benefit and welfare of the Iraqi people. We expect institutions which have blocked assets under the Iraq sanctions program to be ordered to transmit those blocked assets to the federal government. Treasury Press Release 3/21/03

• OCC Releases 33 CRA Evaluations

  The Office of the Comptroller of the Currency released Community Reinvestment Act evaluations of 33 national banks. Of the 33 evaluations, 4 were outstanding, 28 were satisfactory and 1 was needs to improve. OCC NR2003-23 Evaluations 3/21/03

• OCC Issues Alert on Fictitious Offshore Bank

  The Office of the Comptroller of the Currency has been notified by the Government of Montserrat and the State of Florida that LionHeart Bank and Trust Company Limited, Fort Lauderdale, Florida has not been issued a license or been authorized to conduct banking business. OCC Alert 3/20/03

• OTS Guidance on Third Party Arrangements Released

  The Office of Thrift Supervision has issued a Thrift Bulletin on outsourcing relationships. The Bulletin cautions institutions to exercise due diligence prior to entering into third party arrangements and to maintain effective oversight and controls throughout the arrangement. OTS Release 03-10 Thrift Bulletin TB82 3/20/03

• Proposed OTS Form Reduces Regulatory Burden

  The Office of Thrift Supervision has requested comments on its proposal to replace the current Schedule Consolidated Maturity/Rate with a new form known as a Schedule Risk Exposure Data. The change is intended to reduce the data collection burden on institutions while improving the flexibility and utility of the data collected. Comments are due May 19, 2003.OTS Release 03-11 Proposed RED Form Comment Request 3/20/03

• FDIC Announces Reorganization of Publications

  The Federal Deposit Insurance Corporation announced that its publications are now organized into three categories - public research, risk analysis and data sources. The FDIC Banking Review, FDIC Outlook and FDIC Quarterly Banking Profile are the featured publications and are available electronically and in hard copy.FDIC PR 26-2003 FDIC Banking Review FDIC Outlook FDIC Quarterly Banking Profile 3/20/03

• FDIC 2003 Economic Projections Released

  The FDIC Spring 2003 Outlook indicates that banks are recognizing loan losses promptly, taking advantage of the development of an active secondary loan market, and increasing the use of derivative instruments to manage risk in the commercial loan portfolio. FDIC Chairman Powell noted "Strong earnings and capital positions have helped to insulate the banking industry from the more severe effects of corporate sector restructuring."FDIC PR 25-2003 FDIC Spring 2003 Outlook 3/20/03

• Household International Agrees To SEC Cease-and- Desist Order

  The Securities and Exchange Commission entered a cease-and-desist order finding that Household International Inc. violated the antifraud and reporting provisions of the Securities Exchange Act of 1934 by misrepresenting policies that permitted the restructuring of delinquent loans and resetting the loans to "current".SEC PR2003-35 Order 3/20/03

• Treasury Reveals Plans to Protect Financial Markets During Hostilities With Iraq

  The Treasury Department has outlined the steps that have been taken to protect the critical financial infrastructure of the United States including: the government's ability to borrow; the government's ability to make payments - including social security payments; the government's ability to raise revenue through the Internal Revenue Service.Treasury Press Release JS-114 3/20/03

• Fed Funds Rate Remains Unchanged

  The Federal Reserve Board Federal Open Market Committee announced that it had decided to keep the target for the federal funds rate unchanged at 1 ¼ percent.FRB PR2003030318 3/19/03

• Current Regulatory Issues Discussed in OCC Briefing Paper

  OCC First Senior Deputy Comptroller and Chief Counsel Julie L. Williams presented a briefing paper to Congressional staffers at the Financial Services Regulatory Conference held in Washington, D.C. The paper discussed the history of the Office of the Comptroller of the Currency and the national banking system, as well as a number of current issues in bank regulation, including privacy, national bank preemption and the USA Patriot Act.OCC NR 2003-21   Briefing Paper 3/19/03

• FDIC 2003 Annual Performance Plan Released

  The Federal Deposit Insurance Corporation issued its 2003 Annual Performance Plan, which implements its strategic goals and objectives by establishing annual performance goals. Annual Performance Plan 3/19/03

• Improvements Made to 314(a) Request Process

  Financial institutions, and the trade associations that represent them, complained to FinCEN and the Treasury Department about the format in which names were being transmitted from FinCEN for 314(a) search requests. In order to reduce the burdensome nature of the requests, FinCEN has now begun to make the subject names available in a tab-delimited text format that will facilitate electronic searches. Progress! 3/18/03

• Final Reg B Published in Federal Register

  The final rule amending Regulation B has now been published in the Federal Register. The revisions address when a preapproval must be treated as an application, how to determine when an application is truly joint, how to describe the reasons for adverse action, and more. Text   PDF  3/25/03 correction 3/18/03

• Regulators Issue Updated Internal Auditing Guidance

  The Federal Reserve, the FDIC, the OCC, and OTS issued revised guidance on the independence of accountants who provide institutions with both external and internal audit services to reflect the provisions of the Sarbanes-Oxley Act. [The policy statement encourages non-public institutions not subject to Section 36, which includes non-public depository institutions with less than $500 million in assets, to refrain from outsourcing internal audit activities to their external auditor. If such an institution decides to use the same firm for both internal and external audit work, however, the audit committee should document its consideration of the independence issues associated with this arrangement.] The InterAgency Policy Statement indicates the need for institutions to maintain strong systems of internal control, including internal controls over financial and regulatory reporting, and high quality internal audit programs. Expanded guidance has been provided on the use of independent reviews of significant internal controls by small institutions that do not have a formal internal audit manager or staff. Joint Agency Press Release     Other agency press releases: OCC; OTS; FDIC; InterAgency Policy Statement

  : FRB; OCC; ; OTS; FDIC; OCC Bulletin; FDIC FIL 3/18/03

• FRB Publishes List of Financial Holding Companies

  The Federal Reserve Board has released an alphabetical list of bank holding companies that have elected as of March 15, 2003, to become or be treated as financial holding companies under the provisions of the Bank Holding Company Act.List of Financial Holding Companies 3/18/03

• FRB Issues 2002 Monetary Report to Congress

  The report indicates the most likely economic outlook to be that fundamentals will support a strengthening of economic growth, and inflation pressures are anticipated to remain well contained.2002 Monetary Report 3/18/03

• FRB Issues March 2003 Statistical Release of Assets

  The Federal Reserve Board has released the March 2003 Table of U. S. Reserve Assets and the Foreign Official Assets held at Federal Reserve Banks.FRB Bulletin 3/18/03

• NCUA Announces CUs Eligible For Reduced Regulatory Requirements

  The National Credit Union Administration announced 3,650 federal credit unions have been determined to be eligible for RegFlex, a designation created to reduce regulatory burden on strongly-capitalized, well-managed federal credit unions and provides for exemptions from all or part of specific regulations not required by statute and unnecessary for safety and soundness purposes. NCUA NR03-0317 3/18/03

• NCUA Board Member Encourages Services for Non-Home Owners

  National Credit Union Association Board Member Deborah Matz told the attendees at the Annual Conference of the American Credit Union Mortgage Association that minority members who do not own a home represent marketing opportunities for credit union mortgages. She urged credit unions to provide financial literacy training and affordable mortgage programs to entice new membership.NCUA NR03-0317-2 3/18/03

• Merrill Lynch Pays SEC $80 Million Enron Settlement

  The SEC announced the charging of Merrill Lynch & Co., Inc. and four former senior executives with fraud which had the purpose and effect of overstating Enron's reported financial results. Simultaneous with the filing of the complaint in U. S. District Court, Houston, Texas, the SEC accepted Merrill Lynch's $80 Million settlement offer. The funds will be paid into a court account and ultimately distributed to Enron fraud victims.SEC NR2003-32   SEC Complaint 3/18/03

• FRB/Treasury Report on Global Counterfeiting

  The Federal Reserve Board and the Treasury Department issued a joint report to Congress, "The Use and Counterfeiting of United States Currency Abroad, Part II" that details how the combined efforts of the Treasury, United States Secret Service, and Federal Reserve have held the incidence of counterfeiting at relatively low nominal levels. Joint FRB/Treasury Press Release 3/17/03

• NCUA Chairman Remarkrs on Move Toward CU Taxation

  In a speech before the Utah Credit Union League'
  s annual meeting, NCUA Chairman Dennis Dollar said a nationwide move to tax the retained earnings of credit unions would, if successful, result in reductions in credit union net worth sufficient to require Congress to make significant changes in the federal prompt corrective action (PCA) law. NCUA News Release 3/17/03

• Philippines Remains on FATF NCCT List

  The Financial Action Task Force against money laundering has decided not to impose further counter-measures to the Philippines. Recently, the country enacted new amendments to its Philippine Anti-MoneyLaundering Act of 2001. The Philippines will remain on the list of non-cooperative countries and territories(NCCTs) until it has effectively implemented its new anti-money laundering legislation. FATF Announcement 3/17/03

• Cease and Desist Order Announced

  The Federal Reserve Board has issued an Order to Cease and Desist and of Prohibition against Terry Frierson, a former chief executive officer, president, and institution-affiliated party of MSB Shares, Inc., and the Midsouth Bank, Jonesboro, Arkansas. Frierson had allegedly violated Regulation O, engaged in unsafe and unsound practices, and misapplied bank funds. FRB Enforcement 2003)313    Order 3/14/03

• Substantial Penalty Imposed for Flood Violations

  The Federal Reserve Board announced the issuance of a Civil Money Penalty of $17,150 against First Bank, Creve Coeur, Missouri regarding alleged violations of the National Flood Insurance Act. FRB PR-200303132    Order 3/14/03

• Reg Y Modification Published in Federal Register

  The Federal Reserve Board requests comment on a proposal to modify Regulation Y to allow bank holding companies engaged in permissible derivatives activities to transfer title to commodities underlying derivative contracts on an instantaneous, pass-through basis. [This was previously announced on BOL] 67FR12316 (txt) 67FR12316 (pdf) 3/14/03

• Counterfeit Checks Alert Issued by FDIC

  The Federal Deposit Insurance Corporation has learned that counterfeit cashier's checks drawn on Fifth Third Bank, Kentucky, Inc., Louisville, Kentucky and counterfeit checks drawn on Delta Bank, Vidalia, Louisiana, for the account of Community Credit Center, Inc. are currently in circulation. The information has been added to the BOL Alerts & Counterfeits page. FDIC SA-14-2003 3/14/03

• FDIC Chairman Suggests Organizational Changes

  In remarks made before the "Federal Deposit Insurance Corporation Symposium on The Future of Financial Regulation: Structural Reform or Status Quo?", Chairman Powell supported consideration of regulatory changes to promote efficiency, reduce costs and to better protect public confidence in the financial sector. FDIC PR-22-2003 Remarks 3/14/03

• FRB International Finance Discussion Papers Released

  The Federal Reserve Board has released the staff working papers regarding the International Finance Discussion Papers series.Working Papers 3/14/03

• Comptroller Hawke Discusses Basel II Concerns

  In remarks before the Centre for the Study of Financial Innovation, London, England, the Comptroller reviewed his concerns with Basel II and the agreement of the U.S. bank regulators to take steps to simplify the implementation in the United States. The Basel II, approach would be built on three "pillars"- a set of formulas for determining regulatory capital; a set of principles for the exercise of supervisory oversight; and a set of disclosure requirements intended to enhance market discipline. OCC NR 2003-19 Speech 3/14/03

• Chairman Powell Reacts to Deposit Insurance Reform Legislation Action

  Federal Deposit Insurance Chairman Powell expressed his pleasure at the passage of deposit insurance reform legislation by the House Financial Services Committee. FDIC PR-23-2003 3/14/03

• OCC Reports Derivatives Volume Grows $2.9 Trillion

  Derivatives held by U. S. commercial banks increased $2.9 trillion in the fourth quarter, to $56.1 trillion, the Office of the Comptroller of the Currency reported today in its quarterly Bank Derivatives Report. OCC:NR 2003-18 Bank Derivatives Report 3/13/03

• FDIC Announces Money Smart Alliance Partnership with Women in Housing & Finance Foundation

  The FDIC announced that the Women in Housing & Finance Foundation (WHF Foundation) has become the Corporation's newest partner in the Money Smart Alliance Program. FDIC:MS-003-2003 3/13/03

• OFAC Adds New Provisions to the Iraqi Sanctions Regulations

  These new regulations provide for the establishment of a registration program that would authorize nongovernmental organizations to engage in humanitarian activities in the areas of Iraq not controlled by the Government of Iraq. 68FR11741 (txt) 68FR11741 (pdf) 3/13/03

• The Latest Word from FinCEN

  Readers can gain clues into what's happening with the CIP rules and how FinCEN views the 314(a) information request process by reading FinCEN Director Sloan's testimony before the Subcommittee on Oversight Investigation of the Committee on Financial Services. He discussed the role of the Financial Crimes Enforcement Network plays in combating money laundering and fighting terrorism financing.Statement 3/12/03

• Reg Y Modification Proposed

  The Federal Reserve Board requests comment on a proposal to modify Regulation Y to allow bank holding companies engaged in permissible derivatives activities to transfer title to commodities underlying derivative contracts on an instantaneous, pass-through basisComments are requested by April 21, 2003. FRB Press Release 20030311 Proposed Rule 3/12/03

• OFAC Violations to be Made Public

  Under a new Final Rule published by the U. S. Treasury Department's Office of Foreign Assets Control disclosures of civil money penalties imposed for OFAC violations will be made weekly. The name of the entity involved, the sanctions program involved, a brief description of the violation or alleged violation, a clear indication whether the proceeding resulted in an informal settlement or in the imposition of a penalty, and the amount of the penalty imposed or the amount of the agreed settlement will be disclosed. The rule was published previously in the Federal Register and took effect February 22. 2003. This is the OCC's announcement to national banks of the new rule. OCC Bulletin 2003-10 Final Rule 3/12/03

• FFIEC Call Report Changes

  The Federal Financial Institutions Examination Council has given notice of a number of revisions to the Reports of Condition and Income (Call Report). The changes are effective March 31, 2003. This FIL from the FDIC, which incorporates the FFIEC issuance, provides a summary of the changes. FIL-18-2003 3/12/03

• FDIC Issues Counterfeit Checks Check Alert

  The Federal Deposit Insurance Corporation (FDIC) has learned that counterfeit cashier's checks drawn on Center Bank, Los Angeles, California, are currently in circulation. The information has been added to the BOL Alerts & Counterfeit page. FDIC SA-13-2003 3/12/03

• FinCEN IVTS Advisory Issued

  The Financial Crimes Enforcement Network has issued its Advisory Issue 33 which provides financial institutions information on Informal Value Transfer Systems. FinCEN Advisory 33 3/12/03

• FFIEC Publishes Draft Call Report Forms

  The FFIEC has published a new draft FFIEC-031 Call Report for banks with foreign and domestic offices and FFIEC-041 for banks with domestic offices only.FFIEC-031      FFIEC- 041 3/11/03

• NCUA Issues Prohibition Orders

  The National Credit Union Administration has issued Orders of Prohibition against Janice Torricer, Theresa M. Corpuz and Ivy J. Sanchez, former employees of HC&S Federal Credit Union (now Valley Isle Community Federal Credit Union) of Kahului, Hawaii.NCUA News Release NR03-0307 3/11/03

• NCUA Board Member Reiterates Support for Dual Charters

  National Credit Union Administration Board Member Deborah Matz, addressing the 25th Annual NCUA/National Association of State Credit Union Supervisors State Regulatory Conference, reiterated her support for the dual chartering system.NCUA News Release NR03-0310 3/11/03

• OFAC Update

  OFAC issued a bulletin regarding a presidential executive order relating to "Persons Undermining Democratic Processes or Institutions in Zimbabwe". As a result, 77 new designations were added to OFAC's SDN list. See the BOL OFAC page for details. 3/11/03

• Enforcement Actions Terminated

  The Federal Reserve Board announced the termination of eleven enforcement actions. Federal Reserve Press Release 3/10/03

• FedACH Participation Forms Online

  The Federal Reserve Board has posted its ACH participation agreement and instructions online. Before a financial institution begins to originate or receive FedACH items through the Federal Reserve, an ACH agreement must be completed and signed by an authorized individual at the institution. ACH Agreement Instructions 3/10/03

• January Consumer Credit Report Released

  The G.19 Consumer Credit Report for January 2003 was released by the Federal Reserve Board. Total consumer credit rose 9 per cent at an annual rate. Federal Reserve Release (pdf) Text 3/10/03

• Chairman Greenspan Discusses Global Finance

  The Federal Reserve Board Chairman's remarks were presented to attendees at the Banque de France International Symposium on Monetary Policy, Economic Cycle, and Financial Dynamics, Paris, France. Greenspan's Speech 3/10/03

• FRB Issues Proposed Rule on Transition Rules for Reg C

  In 2002, the FRB revised Regulation C and imposed new data collection requirements with an effective date of January 1, 2004. This proposal would revise the official staff commentary to Regulation C to provide transition rules for applications received before January 1, 2004, on which final action is taken on or after January 1, 2004. 68FR11010 (text) 68FR11010 (pdf) 3/7/03

• Notice of expiration of exception to BSA requirement published in Federal Register

  FinCEN's notice of the expiration of a conditional exception to a BSA requirement on May 31, 2003 (the so-called Travel Rule) was published in today's Federal Register. The exception permits financial institutions to substitute coded information for the true name and address of a customer in a funds transmittal order. 68FR10965 (text) 68FR10965 (pdf)3/7/03

• Three Million CMP for BSA Violations Announced

  The Financial Crimes Enforcement Network has announced the assessment of a Three Million civil money penalty against Western Union Financial Services, Inc. Among other violations, it was determined that the company willfully failed to file 662 SARs over a ten month period. FinCEN Assessment 3/7/03

• Large Commercial Bank Quarterly Reports

  The Federal Reserve Board has released the Fourth Quarter 2002 data on commercial banks having consolidated assets of $100 million or more. The information is complied from the consolidated reports of condition and income filed by the banks.FRB Release      Text 3/7/03

• Fourth Quarter Z.1 Released

  The Flow of Funds Accounts of the United States for the Fourth Quarter of 2002 has been released by the Federal Reserve Board. The report contains summaries of various financial indicators. FRB Release Z.1 3/7/03

• Regulatory Restructuring Symposium Announced

  The Federal Deposit Insurance Corporation will sponsor a symposium on the future of financial regulation on Tuesday, March 13, at the National Press Club in Washington, DC. Key experts on financial regulation will discuss how the present system evolved and examine ways in which the complex web of agencies with specialized areas of authority and overlapping jurisdictions might be restructured.FDIC Press Release PR-21-2003 3/7/03

• Reg B Final Rule Published

  The Federal Reserve Board published on its Web site the text of a final rule amending Regulation B. The final rule makes numerous changes to Regulation B and the Official Staff Commentary, including the well-publicized ones regarding collection of applicants' personal characteristics in connection with nonmortgage credit and record retention for prescreened solicitations. The final rule is effective April 15, 2003, but to allow time for any necessary operational changes, the mandatory compliance date is April 15, 2004. [Previously announced on BOL] FRB Press Release    Final Rule 3/6/03

• FDIC Issues CRA Exam Report

  The Federal Deposit Insurance Corporation issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act. The list covers evaluation ratings that the FDIC assigned to institutions in December 2002.FDIC PR-20-2003       List of Banks Examined 3/6/03

• Sarbanes-Oxley Guidance Issued

  The FDIC has provided guidance to institutions about selected provisions of the Sarbanes-Oxley Act, including the actions the FDIC encourages institutions to take to ensure sound corporate governance. The Act applies to publicly traded institutions.FDIC FIL 17-2003 3/6/03

• Beige Book Update Published

  The Federal Reserve Board has published the March 2003 edition of the Beige Book which summarizes the current economic conditions in each of the Federal Reserve Districts.Beige Book      March Summary 3/6/03

• FRB Governor Testifies

  Governor Donald L. Kohn testified regarding the Business Checking Freedom Act of 2003 before the Subcommittee on Financial Institutions and Consumer Credit of the House Committee on financial Services.Testimony 3/6/03

• FDIC Chairman Optimistic on the Economy

  Chairman Donald E. Powell indicated he was optimistic about the economy and expressed his views on corporate governance at the annual conference of the Independent Community Bankers of America in Orlando, Florida.FDIC PR-19-2003 3/6/03

• FFIEC Uniform Bank Performance Report Online

  The December 31, 2002 Uniform Bank Performance Report (UBPR) is now available on line. The online version of the UBPR includes 5 years of continuous financial history that is restated quarterly to reflect call report amendments and new analytical tools. FFIEC Press Release     UBPR 3/6/03

• Chairman Greenspan Discusses Home Mortgage Market

  The Federal Reserve Board Chairman's remarks were presented to attendees at the annual convention of the Independent Community Bankers of America in Orlando, Florida. Greenspan's speech 3/5/03

• Federal Reserve Posts Cash FAQ

  The Cash Section of the Federal Reserve has posted on Federal Reserve Financial Services Web Site a list of Frequently Asked Questions and Answers regarding currency and coin. It addresses such issues as replacing mutilated currency, what portrait appears on various denominations, and where to get uncut sheets of printed bills. Federal Reserve Financial Services 3/5/03

• Comptroller Hawke Calls for Less Burdensome Disclosures

  In a presentation before the annual convention of the Independent Community Bankers of America, the Comptroller noted that consumers are ill-served by the current system of compliance regulation. He called for the development of a new approach that would be more effective for consumers and less burdensome for banks.OCC News Release     Speech 3/5/03

• 2002 Earnings Data Released

  Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation earned a combined $105.4 billion during 2002, the first time annual earnings of the industries topped $100 billion. Return on Assets reached a new high of 1.31 percent, surpassing the old record of 1.25 percent reached in 1999.FDIC PR-17-2003 3/5/03

• FDIC 2001 Annual Report Submitted

  As required by the FDIC Act, the 2001 annual report was submitted to the President and the Speaker of the House of Representatives.FDIC 2001 Annual Report 3/5/03

• FDIC 4th Quarter 2002 Banking Profile Released

  The Quarterly Banking Profile contains a new combined banking and thrift coverage format.FDIC QBP 3/5/03

• FinCEN Notice on Expiration of Exception to Travel Rule

  The CIF Exception to the Travel Rule is scheduled to expire on May 31, 2003. FinCEN intends to permit the expiration, but is soliciting comments before it does so. FinCEN Notice 3/5/03

• Treasury Forms Executive Office for Terrorist Financing and Financial Crimes

  Treasury has announced the formation of a new office to combat domestic and foreign terrorist financing and other financial crimes. The Executive Office for Terrorist Financing and Financial Crimes (EOTF/FC) will focus on reducing the risk that financial systems are being misused by criminals and terrorists. It will also provide policy guidance to both FinCEN and OFAC and will participate in the department's development and implementation of U.S. government policies and regulations in support of the PATRIOT Act.Treasury Press Release 3/4/03

• Federal Reserve Publishes Reg C Transition Rules

  The FRB is proposing amendments to the official staff commentary of Reg C to provide transition guidance. Comments are requested by April 8, 2003. The transition rules would provide guidance to lenders who are required to collect and report new information under the revision to Reg C on what action to take prior to the January 1, 2004 Reg C effective date. Federal Reserve Release     Proposed Rule and staff comments 3/4/03

• Second Quarter CRA Examination Schedule Released By OCC

  The OCC has released its schedule of CRA examinations to be conducted in the second quarter of 2003.OCC News Release 3/4/03

• OTS Releases Second Quarter CRA Examination Schedule

  114 savings associations have been scheduled by the OTS for CRA Examinations during the second Quarter of 2003.OTS Press Release    Exam Schedule 3/4/03

• FDIC Issues Alert on Counterfeit Official Checks

  FDIC Issues Alert on Counterfeits Counterfeit official checks drawn on First Republic Bank, Los Angeles, California, and payable through Bank of America, Chicago, Illinois; and counterfeit cashier's checks drawn on City Bank, Hawaii, Honolulu, Hawaii; and Frost National Bank, San Antonio, Texas are in circulation. Get the details on the BOL Alerts & Counterfeits page, or in the FDIC Special Alert 3/4/03

• About Those Tax Protester Arguments

  The IRS has published a document which addresses some of the more common false "legal" arguments made by individuals and groups who oppose compliance with the federal tax laws. Read "The Truth About Frivolous Tax Arguments" to get the scoop. 3/4/03

• FRB Publishes List of Foreign Margin Stocks

  The List of Foreign Margin Stocks (Foreign List) is composed of certain foreign equity securities that qualify as margin securities under Regulation T. The Foreign List is published twice a year by the Board. 68FR8993 (txt) 68FR8993 (pdf) 3/3/03

• Approval of proposal of The Daiwa Bank, Limited

  The Federal Reserve Board announced the approval of the application of The Daiwa Bank, Limited, Osaka, Japan, to establish a representative office in New York, New York. FRB Press Release 3/3/03

• Director's Corner

  The FDIC has created a special new area on its Web site containing information of interest to bank directors. The .Director.s Corner. includes items such as Interagency Policy Statements, Supervisory Guidance, and Financial Institution Letters on the topics of Corporate Governance Practices, Auditing and Internal Controls, Accounting Practices and the Allowance for Loan and Lease Losses. Director's Corner 3/3/03

• 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 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

• FDIC Issues Alert on Counterfeit Money Orders and Cashier's Checks

  Counterfeit money orders issued by Peoples State Bank of Munising, Munising, Michigan, and counterfeit cashier's checks drawn on Treasury Bank, N.A., Alexandria, Virginia, are in circulation. FDIC:SA-4-2003 1/31/03

• FDIC Issues Alert on Entities Not Authorized by the Cayman Islands Monetary Authority

  The Cayman Islands Monetary Authority (CIMA) has added two institutions, Trans Ocean Bank and First Cayman Bank, to its list of entities that provide a Cayman Island contact address, but are not licensed or registered to conduct business activities regulated by the CIMA. FDIC:SA-5-2003 1/31/03

• OTS Says New York Law Doesn't Apply To Federal Thrifts

  The OTS announced that federal law preempts provisions of the New York predatory lending law from applying to federal savings associations and their operating subsidiaries. The New York law imposes various restrictions on loans based upon the annual percentage rate and amount of points and fees charged. OTS 03-04 1/31/03

• Canadian-Based Defendants to Pay $25,000 for Conducting Credit Card Protection Scheme

  The Federal Trade Commission once again warned consumers to be wary of telemarketers and to "Ditch the Pitch." The agency announced a settlement with Canadian-based defendants, who allegedly defrauded hundreds of consumers by pressuring them over the phone to purchase essentially worthless "credit card protection" insurance for up to $369. FTC Press Release 1/31/03

• Revised FFIEC guidance for examiners and financial institutions in identifying information security risks

  The FFIEC issued revised guidance for examiners and financial institutions to use in identifying information security risks and evaluating the adequacy of controls and applicable risk management practices of financial institutions. FRB Press Release FFIEC OTS 03-03 1/30/03

• FDIC Seeks Comment on Draft Payday Lending Guidance

  The FDIC has developed guidelines for payday lending. A draft of this guidance is available. The FDIC intends to issue on March 31, 2003. FDIC:PR-5-2003 FYI 1/30/03

• The Future of Financial Regulation: Structural Reform or Status Quo?

  A March 13, 2003, symposium – "The Future of Financial Regulation: Structural Reform or Status Quo?" – will evaluate the U.S. financial regulatory system. The symposium will examine the current financial regulatory structure, identify challenges and obstacles to reform, and explore alternatives for the future. Symposium 1/30/03

• FOMC Statement

  The Federal Open Market Committee decided to keep its target for the federal funds rate unchanged at 1-1/4 percent. FRB Press Release 1/30/03

• Approval of application of BBVA Bancomer, S.A.

  The Federal Reserve Board announced the approval of the application of BBVA Bancomer, S.A., Mexico City, Mexico, to establish an agency in Houston, Texas. FRB Press Release 1/30/03

• OFAC Publishes Proposed Rule on Economic Sanctions Enforcement Guidelines

  The Office of Foreign Assets Control of the U.S. Department of the Treasury is publishing for public comment an updated
  version of its internal Economic Sanctions Enforcement Guidelines. 68FR4422 (txt) 68FR4422 (pdf) 1/29/03

• OCC Transmits Final Rule Regarding Foreign Correspondent Banks

  This bulletin transmits a final rule issued by the Treasury Department amending a previously published rule and extends the time for obtaining information from foreign banks in which a covered financial institution maintains a correspondent account.
  OCC 2003-3 1/29/03

• FRB Issues Changes to Reg H

  These amendments vest the Board with the authority to administer and enforce several of the enhanced reporting,
  disclosure and corporate governance obligations imposed by the Sarbanes-Oxley Act with respect to state member banks that have a class of securities registered under the Securities Exchange Act of 1934. 68FR4092 (text) 68FR4092 (pdf) 1/28/03

• Specifications for Magnetic Media Filing

  The purpose of this specification is to provide the requirements and conditions for filing Suspicious Activity Report by Money Services Business (SAR-MSB), Treasury Form TDF 90-22.56 on magnetic media. Specifications 1/28/03

• 2003 Savings Bond Seminar Schedule

  The Federal Reserve Financial Services published the 2003 Savings Bond Seminar Schedule. Schedule 1/27/03

• 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. January 2003 1/27/03

• FDIC Issues Special Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on State Bank of Kimball, St. Cloud, Minnesota, are currently in circulation. SA-3-2003 1/27/03

• FDIC FIL about OFAC Change

  The Department of the Treasury's Office of Foreign Assets Control has updated its list of approved service providers to Cuba. FDIC:FIL-7-2003 [This was previously announced on BOL] 1/27/03

• 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. FDIC:FIL-8-2003 [This was previously announced on BOL] 1/27/03

• FTC Releases Top 10 Consumer Complaint Categories in 2002

  The FTC has released its annual report detailing consumer complaints about identity theft and listing the top 10 fraud complaint categories reported by consumers. As in 2000 and 2001, identity theft topped the list, accounting for 43 percent of the complaints lodged in the FTC's Consumer Sentinel database. The number of fraud complaints jumped from 220,000 in 2001 to 380,000 in 2002, and the dollar loss consumers attributed to the fraud they reported grew from $160 million in 2001 to $343 million in 2002. FTC Press Release 1/24/03

• Civil Money Penalty against Central State Bank

  The Federal Reserve Board announced the issuance of an Order of Assessment of a Civil Money Penalty against the Central State Bank, Calera, Alabama, a state member bank. FRB Press Release 1/24/03

• Civil Money Penalty against La Salle State Bank

  The Federal Reserve Board announced the issuance of an Order of Assessment of a Civil Money Penalty against the La Salle State Bank, La Salle, Illinois, a state member bank. FRB Press Release 1/24/03

• Civil Money Penalty against Simmons First Bank of Russellville

  The Federal Reserve Board announced the issuance of an Order of Assessment of a Civil Money Penalty against the Simmons First Bank of Russellville, Russellville, Arkansas, a state member bank. FRB Press Release 1/24/03

• Civil Money Penalty against Bank of Yellville

  The Federal Reserve Board announced the issuance of an Order of Assessment of a Civil Money Penalty against The Bank of Yellville, Yellville, Arkansas, a state member bank. FRB Press Release 1/24/03

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

  The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 38), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:SA-2-2003 1/23/03

• FDIC Issues Special Alert on Stolen or Missing Money Orders

  The FDIC has learned that 1,200 stolen or missing money orders, drawn on Normandy Bank, St. Louis, Missouri, may be in circulation. FDIC:SA-1-2003 1/23/03

• OTS Says Georgia Law Doesn't Apply to Federal Thrifts

  The OTS announced that federal law preempts provisions of the Georgia Fair Lending Act (GFLA) from applying to federal savings associations and their operating subsidiaries. The GFLA imposes various restrictions on loans based upon the annual percentage rate and amount of points and fees charged. OTS 03-02 1/23/03

• OCC Announces Nine New Enforcement Actions and Three Terminations

  The OCC announced nine new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and three terminations of existing enforcement actions. OCC:NR 2003-04 1/23/03

• OCC Releases CRA Evaluations For 39 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of December 15, 2002 through January 14, 2003. The list contains only national banks and insured federal branches of foreign banks that have received ratings. The possible ratings are outstanding, satisfactory, needs to improve, and substantial noncompliance.
  OCC:NR 2003 - 05 1/23/03

• Fedwire Securities Guide

  This guide provides a brief description, and contact information, of governmental and international agencies issuing book-entry securities through the Federal Reserve Banks. The guide lists each of the agency's products by class code. Guide 1/22/03

• OCC Concludes Case Against FNB in Brookings Involving Payday Lending, Unsafe Merchant Processing, and Deceptive Marketing of Credit Cards

  The OCC has concluded an enforcement action against First National Bank in Brookings requiring the Brookings, S.D. institution to pay restitution to credit card customers harmed by its marketing practices, terminate its payday lending business and stop merchant processing activities through one vendor. OCC:NR 2003 - 03 Consent Order 1/22/03

• FDIC FIL about OFAC Change

  Treasury's Office of Foreign Assets Control (OFAC) has unblocked certain property and assets owned by FRY. FDIC:FIL-6-2003 [This was previously announced on BOL] 1/22/03

• HOEPA APR Reference Rates for February Released

  The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in February 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, use the yield in effect on the 15th of the month that precedes the month you received the application. FRB: H.15 Releases 1/21/03

• Money Laundering: A Banker's Guide to Avoiding Problems, December 2002

  This booklet, which updates a 1993 publication, discusses how bankers can identify and manage the risks associated with money laundering and terrorist financing. The revision was prompted by the growing sophistication of money launderers, a growing international response to money laundering, changes to anti-money laundering laws, and recent anti-terrorist financing legislation.
  Booklet 1/21/03

• Federal Register publishes Proposed Rule to Make it a Requirement That Mutual Funds Report Suspicious Transactions
  

  The amendment would require mutual funds to report suspicious transactions to the Department of the Treasury. [This was earlier reported on BOL] 68FR2716 (text) 68FR2716 (pdf) 1/21/03

• Fourth Quarter 2002 Edition of the FDIC's Letter to Stakeholders

  The FDIC issues its third Letter to Stakeholders, a report of the agency's activities in the fourth quarter of 2002. FDIC:FIL-5-2003 Letter to Stakeholders 1/21/03

• FinCEN Issues Large Civil Penalty Assessment in Conjunction with Criminal Information

  A criminal information filed at U.S. District Court in the District of Puerto Rico charges Banco Popular with one count of failing to file Suspicious Activity Reports (SARs) in violation of Title 31 USC 5318(g)(1) and 5322(a). Banco Popular waived indictment, agreed to the filing of the information, and accepted and acknowledged responsibility for its behavior in a factual statement accompanying the information. The company will forfeit $21.6 million to the United States to settle any and all civil claims held by the government. FinCEN Press Release 1/17/03

• FRB Makes Available "Identity Theft" Booklet

  "Identity Theft" was developed by the Federal Reserve Bank of Boston and complements the Bank's 2001 issuance of the video, "Identity Theft: Protect Yourself." Addressed to consumers, the booklet describes the dangers posed by identity thieves, what people can do to protect themselves, and what they should do if they discover their identities have been stolen. FRB Press Release 1/17/03

• Statement by Chairman Greenspan on the retirement of William J. McDonough, president of the FRB of New York

  I will greatly miss Bill McDonough's counsel and advice. After a decade of exemplary service to the Federal Reserve System, his retirement will leave a pronounced void. FRB Press Release 1/17/03

• Further Test Shows No Anthrax Presence on Sample from Mail to FRB

  The FRB received results from further testing conducted by the State of North Carolina, under the guidance of the Centers for Disease Control. It showed no anthrax bacteria present on a sample from a piece of mail which earlier had tested presumptively positive for the bacteria in a private laboratory. FRB Press Release 1/17/03

• FinCEN Waiver from Civil Money Penalties for Failure to Timely File Report of Foreign Bank and Financial Accounts

  This serves notice that the Director of the Financial Crimes Enforcement Network (FinCEN) has granted a waiver from civil money penalties for violations of the Bank Secrecy Act, 31 U.S.C. 5314, and its implementing regulation, 31 C.F.R. Part 103.24, to persons who enter into settlement and comply with the terms and conditions of the Offshore Voluntary Compliance Initiative, as provided by the Internal Revenue Service, U.S. Department of the Treasury. FinCEN Notice 1/16/03

• FTC Issues Consumer Alert on Home Borrowing

  The Federal Trade Commission has issued a revised alert to consumers warning about the dangers of predatory lending. Titled "Need a Loan? Think Twice About Using Your Home as Collateral," the alert points out pitfalls of home borrowing, talks about laws (such as HOEPA) that may provide rights to the consumer, and provides tips for those seeking a loan. PDF version of alert,    HTML version,     FTC Announcement 1/15/03

• Reauthorization by the Congress of the National Flood Insurance Program

  The FRB informed state member banks of the reauthorization of the National Flood Insurance Program (NFIP) by the Congress, retroactive to December 31, 2002. FRB Press Release, FDIC:PR-4-2003 FDIC:FIL-4-2003 OCC 2003-2 1/15/03

• The FDIC is seeking public comment on certain proposed changes to Part 303 of the FDIC's Rules and Regulations

  The FDIC is requesting public comment on a proposed rule clarifying the filing and processing of applications submitted by insured depository institutions. Comments on this proposed rule are due by February 25, 2003. FDIC:FIL-3-2003 1/15/03

• FinCEN Issues Proposed Rule to Make it a Requirement That Mutual Funds Report Suspicious Transactions

  The amendment would require mutual funds to report suspicious transactions to the Department of the Treasury. FinCEN Press Release 1/15/03

• FDIC to Demystify Basel II Capital Regulation

  The FDIC will analyze impending changes in international capital regulation that could have a far reaching impact on the financial services industry and the global economy, and publish its findings in a series of papers. FDIC:PR-3-2003 FYI 1/15/03

• NFIP Retroactively Reauthorized

  H.R. 11, the "National Flood Insurance Program Reauthorization Act of 2003" was signed into law by President George W. Bush. It retroactively reauthorizes the National Flood Insurance Program until December 31, 2003, effectively ending the untenable position many lenders found themselves in after the program lapsed 1/1/03. White House Press Release 1/14/03

• Adoption of Regulation W Implementing Sections 23A and 23B of the Federal Reserve Act
  

  On December 12, 2002, Regulation W, the rule that comprehensively implements sections 23A and 23B of the Federal Reserve Act, was published in the Federal Register.1 The rule is effective April 1, 2003. SR 03-2 gives a summary of significant issues addressed in the rule. FRB: SR 03-2 1/14/03

• HUD Issues Proposed Rule to Make Lender Accountability for Appraisals

  This proposed rule clarifies and strengthens HUD's regulations concerning the responsibilities of lenders approved by the Federal Housing Administration (FHA) in the selection of appraisers to perform appraisals on properties that will be the security for FHA insured mortgages. 68FR1765 (text) 68FR1765 (pdf) 1/14/03

• FRB Issues Final Rule to Reg A to Reflect Interest Rate Change

  The FRB is publishing final amendments to Regulation A to reflect its approval of the initial interest rates for extensions of primary and secondary credit. 68FR1793 (text) 68FR1793 (pdf) 1/14/03

• Approval of proposal of Royal Bank of Canada and RBC Centura Banks, Inc.

  The Federal Reserve Board today announced its approval of the applications by Royal Bank of Canada, Montreal, Canada, and RBC Centura Banks, Inc., Rocky Mount, North Carolina, under section 3 of the Bank Holding Company Act, to acquire Admiralty Bancorp, Inc., and its wholly owned subsidiary, Admiralty Bank, both in Palm Beach Gardens, Florida. FRB Press Release 1/14/03

• OCC Proposed Rule Encourages Public Welfare Investments by National Banks

  The OCC proposes to amend its regulation governing national bank investments that are designed primarily to promote the public welfare. National banks and their community partners committed $995 million to public welfare investments in 2001. In order to encourage additional public welfare investments by national banks, the proposal simplifies the regulation and reduces unnecessary burden associated with these investments.
  NR 2003-02 68FR1394 (txt) 68FR1394 (pdf) 1/10/03

• House Passes Retroactive Flood Insurance Bill

  On January 8, 2003, the House of Representatives passed H.R.11, the National Flood Insurance Reauthorization Act of 2003. The Act extends the Flood Insurance program through Dec. 31, 2003 and makes the effective date for the extension retroactive to December 31, 2002. The legislation now moves to the Senate. News Release H.R.11 1/9/03

• FRB Issues Final Rule to Reg K - International Lending

  The FRB is amending its regulations relating to international lending by simplifying the discussion concerning the accounting
  for fees on international loans to make the regulation consistent with generally accepted accounting principles (GAAP). 68FR1158 (txt) 68FR1158 (pdf) 1/9/03

• Regulators Issue Account Management and Loss Allowance Guidance for Credit Card Lending

  Banking supervisory agencies have jointly issued "Account Management and Loss Allowance Guidance for Credit Card Lending." The guidance is to ensure that financial institutions conduct credit card lending in a safe and sound manner by establishing sound account management, risk management, and loss allowance management practices. This guidance is effective immediately. OCC 2003-1 Guidance FDIC-PR-02-2003 1/9/03

• Reserve Bank income and expense data and transfers to the Treasury for 2002

  Preliminary figures indicate that the Federal Reserve Banks distributed approximately $24.497 billion of their $26.758 billion total income to the U.S. Treasury during 2002. FRB Press Release 1/9/03

• FFIEC Abandons Collection of Subprime Lending Data Plan

  On January 7, 2003 the FFIEC announced the proposed plan to collect subprime lending information from quarterly regulatory reports was being dropped. The data will continue to be gathered in the examination process, which will remain the focal point of the regulatory supervision of subprime consumer lending activities. FFIEC Press Release 1/8/03

• FinCEN Offers Guidance on Definition of Check Casher and BSA Requirements

  Guidance 1/8/03

• Regulators Request 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.
  68FR1115 (text) 68FR1115 (pdf) FDIC:FIL-1-2003, FRB Press Release, OTS 03-01 OCC: 2003-1
  1/8/03

• Primary and secondary credit rates established

  The Federal Reserve Board announced it has approved requests by the twelve Federal Reserve Banks to establish primary and secondary credit rates of 2-1/4 percent and 2-3/4 percent, respectively, effective January 9, 2003. FRB Press Release 1/8/03

• Holiday District Announcements

  The Federal Reserve Banks will be closed on Monday, January 20, 2003, for the Martin Luther King, Jr. holiday. Announcement 1/8/03

• FRB Approves Revisions to Subpart D of Regulation K, Governing International Banking Operations

  The final rule will reduce the regulatory burden on banking institutions engaged in international lending by simplifying the requirements concerning accounting for fees on international loans to make the regulation consistent with generally accepted accounting principles (GAAP). FRB Press Release, Final Rule 1/7/03

• FDIC Issues January 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 October 2002. FDIC:PR-1-2003 List 1/7/03

• Consumer Advisory Council appointments for 2003

  The Federal Reserve Board named ten new members to its Consumer Advisory Council for three-year terms and designated a new Chair and Vice Chair of the Council for 2003. FRB Press Release 1/6/03

• OCC Issues Buy-Sell Agreements between Subchapter S Corporations and National Bank Directors

  This advisory letter is intended to refer national banks, especially community national banks, that seek to qualify as Subchapter S corporations for federal tax purposes to an Internal Revenue Service ruling that may be relevant to them. OCC:AL 2003-1 1/2/03

• FDIC Issues Final Rule on Governing Filing Procedures and Delegations of Authority

  The FDIC Board of Directors has revised the agency's regulation and related policy statements that govern the filing and processing of applications submitted by insured depository institutions. FDIC:FIL-146-2002 1/2/03

• FDIC Makes Public November Enforcement Actions; One Administrative Hearing Scheduled

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in November. One administrative hearing is scheduled for January 2003. FDIC:PR-135-2002 1/2/03

• Treasury, SEC and Federal Reserve Submit USA PATRIOT Act Report on Investment Companies to Congress

  The Treasury Department, the Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System today released a report to Congress under the USA PATRIOT Act containing recommendations for applying anti-money laundering controls to investment companies. PO-3721 Treasury Press Release 1/2/03
  

Treasury announced the designation of Afghan national Lahore Jan under the Foreign Narcotics Kingpin Designation Act (Kingpin Act) for his significant role in international narcotics trafficking. Lahore Jan is a known narcotics trafficker in Jalalabad, Afghanistan. He is involved in moving money for the Taliban and other narcotics traffickers using his hawala, a value transfer system, called the Lahore Jan Shanwari Exchange. His name and that of the transfer system have been added to the SDN list with the SDNTK designation. For additional details see our BOL OFAC Update.

The Federal Reserve Board of Governors has issued an invitation to a webinar on the Community Bank Risk-Focused Consumer Compliance Supervision Program. The "Outlook Live" presentation will take place Thursday, March 6, 2014, from 1:00 pm - 2:00 pm Eastern Time. Online registration for the program is required.

Chairman Yellen presented the Federal Reserve Board's semiannual Monetary Policy Report to Congress and testified before the House Committee on Financial Affairs. She reviewed the current economic situation and outlook, monetary policy, and an update of the agency's progress on regulatory reforms and supervisory actions to strengthen the financial system. She emphasized she expects a great deal of continuity in the FOMC's approach to monetary policy.

The Bureau has issued an invitation to attend a meeting of its Consumer Advisory Board (CAB) to be held at 10:00 a.m. ET on February 27 in Washington D.C. The event is open to the public but an email RSVP is required. Director Cordray will offer remarks, and the Consumer Advisory Board will listen to consumer groups, community and industry representatives, and members of the public. An agenda for the meeting was also provided. The two-hour session is the only portion of the full two-day CAB meeting scheduled for February 26–27 that will be open to the public.

The Federal Reserve Board of Governors has issued an invitation to a webinar on the Community Bank Risk-Focused Consumer Compliance Supervision Program. The "Outlook Live" presentation will take place Thursday, March 6, 2014, from 1:00 pm - 2:00 pm Eastern Time. Online registration for the program is required.