Top Story Compliance Related

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.

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.

• Quicken Loans Settles Adverse Action Notice Charges

  Quicken Loans Inc., a mortgage lender based in Livonia, Michigan, has agreed to settle Federal Trade Commission charges that it failed to provide "adverse action" notices in violation of the Fair Credit Reporting Act (FCRA). The FTC alleges that Quicken Loans failed to comply with the provisions of the Act that require credit grantors who take adverse action to notify the consumer when the action is based wholly or partly on the consumer's credit report. The interesting twist is that this involves online "preapproved" loan applications. Quicken Loans settlement 12/31/02

• FDIC Updates E.D.I.E.

  The FDIC has developed a CD ROM version of its Electronic Deposit Insurance Estimator (EDIE) for use by bank employees. This version allows users to enter depositor account information much more quickly than the Internet version, and since it is available in CD-ROM, it does not require a connection to the Internet to operate. The banker version also provides a printable report that financial institution staff can share with bank customers. FDIC:FIL-147-2002 - EDIE 12/31/02

• HMDA Asset Threshold Remains at $32 Million

  The Federal Register has published a final rule announcing that the HMDA Asset Threshold Remains at $32 Million. The asset size threshold for triggering coverage under HMDA, which is tied to the Consumer Price Index, will remain the same for 2003 -- $32 million. To trigger HMDA coverage, a lender must meet the asset test and have an office in an MSA. [This was previously announced on BOL] 67FR79844 (text) 67FR79844 (pdf) 12/31/02

• FDIC Seeks Comment on Technical Changes/Corrections

  The FDIC has published a notice of proposed rulemaking and request for comment relating to technical corrections and modifications to clarify existing policies and procedures on filings, Corporate Powers, International Banking, Management Official Interlocks. Text; PDF; 12/27/02

• FDIC Updates Rules to Reflect Internal Reorganization

  The FDIC has published a final rule amending its regulations governing application,notice and request procedures to reflect changes from an internal reorganization order, which included the consolidation of the Division of Supervision and the Division of Compliance and Consumer Affairs into the Division of Supervision and Consumer Protection. Note that the final rule reflects changes in part 303 as a result of the FDIC internal reorganization and does not affect any regulatory requirement imposed by the FDIC on the public. Text | PDF. It also made corresponding changes to its policy statement on mergers, Text; PDF; and Deposit Insurance Applications, Text; PDF. 12/27/02

• OCC Publishes Notice of Designation - Designation of Nauru and Ukraine as Primary Money Laundering Concerns

  This bulletin announces the Treasury Department's designation of Nauru and Ukraine as primary money-laundering concerns. Bank Secrecy Act section 5318A authorizes the Secretary of the Treasury to designate a foreign jurisdiction, institution, class of transaction, or type of account as being of "primary money laundering concern," and to impose one or more of five "special measures." OCC 2002-47 Notice of Designation, List of Foreign Banks 12/27/02

• HMDA Asset Threshold Remains at $32 Million

  The FRB has announced that the asset size threshold for triggering coverage under HMDA, which is tied to the Consumer Price Index, will remain the same for 2003 -- $32 million. To trigger HMDA coverage, a lender must meet the asset test and have an office in an MSA. FRB Press Release 12/26/02

• Denial of proposal of Illini Corporation

  The Federal Reserve Board announced its denial of the application of Illini Corporation, Springfield, Illinois, to acquire Illinois Community Bancorp, Inc., Effingham, Illinois. FRB Press Release 12/26/02

• Regional Outlook: 4th Quarter 2002

  Credit losses have continued to increase, particularly on commercial loans to corporate borrowers, during the first three quarters of 2002. Regional Outlook 12/26/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on Mechanics & Farmers Bank, Durham, North Carolina, Penn Security Bank & Trust Co., Scranton, Pennsylvania and Northrim Bank, Anchorage, Alaska are currently in circulation. FIL-144-2002 12/26/02

• FDIC Issues Alert on Stolen Cashier's Checks

  The FDIC has learned that a box of cashier's checks, which were stolen during delivery from a third-party printer to the owner of the instruments, Diamond State Bank, Nashville, Arkansas, are currently in circulation. FIL-145-2002 12/26/02

• Fact Sheet Regarding the Treasury Department's Use of Sanctions Authorized Under Section 311

  Treasury Press Release 12/26/02

• Banking Industry Performs Strongly As U.S. Economy Slowly Recovers

  Banks posted record earnings in the first nine months of 2002 as the U.S. economy slowly recovered from the recession that began in March 2001. However, according to a report released today in the FDIC's Regional Outlook, credit losses have continued to increase, particularly on commercial loans to corporate borrowers. The FDIC's semiannual review of economic conditions and emerging risks in banking also indicates that a steep yield curve has helped boost net interest income. FDIC:PR -133-2002 12/26/02

• Realignment of Regional/Area Office and Field Territory Responsibilities

  The FDIC is transitioning certain risk-management responsibilities to the field territory level, streamlining many core risk-management functions. FDIC:FIL-143-2002 12/26/02

• Banks Play Significant Role in Rural Economic Development

  A new publication issued this week by the OCC highlights the critical role banks play in the economic vitality of rural America through community development corporations and partnerships with government programs. OCC:NR 2002- 97 12/23/02

• Agencies Release Guidance on Imminent Lapse in FEMA Flood Insurance Authority

  This letter provides guidance to assist national banks in dealing with the period following January 1, 2003, during which the authority of the Federal Emergency Management Agency (FEMA) to issue flood insurance contracts under the National Flood Insurance Program (the NFIP) will lapse. This guidance has been developed in consultation with the other federal supervisory agencies to ensure a consistent approach to this issue. [This was previously announced on BOL] OCC: AL 2002-11 OTS 02-47 FDIC:FIL-142-2002 FDIC:PR-134-2002 12/23/02

• FATF decides to impose counter-measures on Ukraine; no counter-measures to apply against Nigeria at this time

  Members of the Financial Action Task Force will apply counter-measures1 to Ukraine, in addition to the current application of Recommendation 212. This decision is the result of Ukraine's failure to enact anti-money laundering legislation that meets international standards. FATF Press Release OCC 2002-47 12/23/02

• OCC Performance and Accountability Report for Fiscal Year 2002

  This report includes OCC management's discussion and analysis, financial discussion and analysis, the independent auditor's report, and financial statements and notes. Report 12/20/02

• OTS Revises Regulations Governing Affiliate Transactions

  The Home Owners’ Loan Act (HOLA) requires OTS rules to be consistent with Federal Reserve Board rules. Regulation W, issued December 12 by the Federal Reserve Board, is a new comprehensive rule that implements restrictions on affiliate transactions contained in sections 23A and 23B of the Federal Reserve Act, including revisions mandated by the Gramm-Leach-Bliley Act. OTS 02-46 12/20/02

• Regulators Distribute Call Report for Third Quarter 2002

  Banks should complete your fourth quarter Call Report, review it for accuracy, and submit the report electronically as soon as possible. Except for certain banks with foreign offices, your completed report must be received by January 30, 2003. FDIC:FIL-141-2002 12/20/02

• Legal Division Honors Program

  This recruitment program provides valuable, challenging employment opportunities to outstanding law school graduates. Honors Program 12/20/02

• Written Agreement with Metamora Bancorp

  The FRB announced the execution of a Written Agreement by and among Metamora Bancorp, Inc., Metamora, Ohio; The Metamora State Bank, Metamora, Ohio; the Federal Reserve Bank of Cleveland; and the Ohio Division of Financial Institutions. FRB Press Release 12/20/02

• Saturday Production Test Schedule 2003

  Saturday Production Test Schedule 2003 12/19/02

• OCC Issues Advisory Letter on Reverse Stock Split Procedures

  The OCC is revising the expedited review procedures for national banks to effect reverse stock splits. The revision is necessary to reflect the repeal of 12 USC 51, minimum capital requirements. OCC:AL 2002-6 12/19/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-140 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-140-2002 12/19/02

• Agencies Propose Disciplinary Action Rules for Accountants and Accounting Firms Performing Certain Audit Services

  The federal bank and thrift regulatory agencies today invited public comment on proposed rules governing their authority to take disciplinary actions against independent public accountants and accounting firms that perform audit and attestation services required by section 36 of the Federal Deposit Insurance Act. FRB Press Release FDIC-PR-132-2002 OCC:NR 2002-96 OTS 02-45 12/18/02

• FinCEN Issues Guidance On Interpreting “Frequently” Found In The Criteria For Exempting A Non-Listed Business

  Guidance on Frequency 12/18/02

• 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. December 2002 12/18/02

• FDIC Approves the Assumption of the Insured Deposits of the Farmers Bank & Trust of Cheneyville, Cheneyville, Louisiana

  The Board of Directors of the FDIC approved the assumption of the insured deposits of The Farmers Bank & Trust of Cheneyville, Cheneyville, Louisiana, by Sabine State Bank and Trust Company, Many, Louisiana. FDIC:PR-131-2002 Press Release 12/18/02

• OCC Releases CRA Evaluations For 37 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of November 15 through December 14, 2002. OCC:NR 2002-95 12/18/02

• FRB Issues Proposal to Expand Operating Hours for the On-line Fedwire Funds Service

  Under the proposal, the Fedwire Funds Service would open three and one-half hours earlier than the current opening time of 12:30 a.m. eastern time (ET). The closing time for the service would remain unchanged at 6:30 p.m. ET. The earlier opening time is expected to further the smooth functioning and continued development of the payments system, as well as to improve efficiency and reduce risk in making payments and settlements. FRB Press Release 12/17/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-139 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-139-2002 12/17/02

• OCC Announces 14 New Enforcement Actions and 5 Terminations

  The OCC announced 14 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 5 terminations of existing enforcement actions. OCC:NR 2002-94 12/16/02

• OCC Reports Derivatives Volume Grows $3.1 Trillion

  Derivatives held by U. S. commercial banks increased $3.1 trillion in the third quarter, to $53.2 trillion, the
  Office of the Comptroller of the Currency reported in its quarterly Bank Derivatives Report. OCC:NR 2002-93 12/16/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on Community Bank of the Midwest, Great Bend, Kansas, are currently in circulation. FIL-138-2002 12/16/02

• FDIC announces a series of steps intended to facilitate the process of rebuilding areas in Guam damaged by Super Typhoon Pongsona.

  Guam has sustained heavy damage to its ports, power and water facilities, a hospital and commercial and residential properties from Super Typhoon Pongsona. As noted in the guidelines, the FDIC is encouraging banks to work constructively with borrowers who are experiencing difficulties due to conditions beyond their control. FDIC:FIL-137-2002 Guidelines 12/13/02

• FFIEC Publishes Notices and Drafts

  FFIEC publishes FFIEC 002 Initial Federal Register Notice (PDF) and FFIEC 002 Draft Reporting Form (PDF) 12/13/02

• Appointment of Sandra Pianalto as president of the Federal Reserve Bank of Cleveland

  The Federal Reserve Bank of Cleveland has appointed Sandra Pianalto as the Bank's new president. The announcement was made Thursday by David Hoag, chairman of the Cleveland Bank's board of directors. FRB Press Release 12/13/02

• Approval of proposal of Bank of Hawaii

  The Federal Reserve Board today announced its approval of the application by Bank of Hawaii, Honolulu, Hawaii, under section 18(c) of the Federal Deposit Insurance Act, to merge with First Savings and Loan Association of America, Dededo, Guam. FRB Press Release 12/13/02

• Approval of proposal of Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A.

  The Federal Reserve Board today announced its approval of the application of Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., Rabobank Nederland, Utrecht, The Netherlands, to become a bank holding company by acquiring VIB Corp, and thereby indirectly acquiring its subsidiary bank, Valley Independent Bank, both in El Centro, California. FRB Press Release 12/13/02

• Changes to Reg W Published in the Federal Register

  As earlier reported on BOL, Sections 23A and 23B and Regulation W restrict loans by a depository institution to its affiliates, asset purchases by a depository institution from its affiliates, and other transactions between a depository institution and its affiliates. Regulation W unifies in one public document the Board's interpretations of sections 23A and 23B. Final Regulation W will have an effective date of April 1, 2003. The FRB is publishing a final rule that rescinds, as of April 1, 2003, the Board's existing formal interpretations of sections 23A and 23B (which have been incorporated into Regulation W). In addition, the FRB is seeking public comment on a proposed rule that would prevent a depository institution from using an exemption in Regulation W for the purchase of extensions of credit from an affiliate if purchases made under the exemption exceeded 100 percent of the institution's capital. Comment are due January 13, 2003.
  67FR76619 (pdf)..|..67FR76619 (txt) | 67FR76559 (pdf) | 67FR76559 (txt) | 67FR76617 (pdf) | 67FR76617 (txt)
  12/12/02

• OTS Publishes delay of effective date for Alternative Mortgage Transaction Parity Act

  To rely on AMTPA, certain state chartered housing creditors must comply with regulations issued by the Office of Thrift Supervision (OTS). OTS recently revised its rule identifying the OTS regulations that apply under AMTPA. The effective date is delayed until July 1, 2003. 67FR76304 (pdf) 67FR76304 (text) 12/12/02

• OTS Issues Final Rule Specifying the Recordkeeping and Confirmation Requirements that Effect Securities Transactions

  Under a rule issued by the SEC, savings associations may perform certain broker-dealer activities without registering with
  the SEC. This final rule affords savings association customers the same protections and disclosures provided to bank customers; ensures that examiners will be able to evaluate a savings association's compliance with securities laws and to assess whether savings associations effect securities transactions safely and soundly; and provides savings associations with formal guidance for effecting securities transactions. 67FR76293 (pdf) 67FR76293 (text) 12/12/02

• Seven new members named to the Thrift Institutions Advisory Council and new president and vice president named for 2003

  The Council is an advisory group made up of twelve representatives from thrift institutions. The panel was established by the Board in 1980 and includes savings and loan, savings bank, and credit union representatives. The Council meets three times each year with the Board of Governors to discuss developments relating to thrift institutions, the housing industry, mortgage finance, and certain regulatory issues. FRB Press Release 12/12/02

• Holiday District Announcements Christmas and New Year's

  The Federal Reserve Banks will be closed on Wednesday, December 25, for Christmas and on Wednesday, January 1, for New Year's Day.12/12/02

• Fed Leaves Rates Unchanged

  The FOMC decided to keep its target for the federal funds rate unchanged at 1-1/4 percent. FRB Press Release12/12/02

• 2003 Holiday Schedules

  Holiday Schedules 12/12/02

• Statement of Douglas Roeder, Senior Deputy Comptroller before the Permanent Subcommittee on Investigations

  Statement of Douglas Roeder Senior Deputy Comptroller Office of the Comptroller of the Currency before the Permanent Subcommittee on Investigations of the Committee on Governmental Affairs of the United States Senate. OCC:NR 2002- 92 12/12/02

• FDIC Publishes Final Rule Implementing Sections of the USA PATRIOT Act That Address Correspondent Accounts for Foreign Shell Banks

  As previously reported on BOL, the final rule would prohibit certain financial institutions from providing correspondent accounts to foreign shell banks. FDIC:FIL-136-2002 12/12/02

• FDIC Reports Bank Earnings Remained Near Record Levels, While Savings Institutions' Profits Hit a New High in the Third Quarter

  Commercial banks' domestic operations continued to demonstrate earnings strength in the third quarter of 2002, as the industry posted its second-best quarterly net income ever, remaining on pace to set a full-year earnings record. Third-quarter net income of $23.3 billion was slightly below the record $23.4 billion banks earned in the second quarter, but it represented a 34.4-percent improvement from their net income in the third quarter of 2001. FDIC:PR-130-2002 12/12/02

• Notice of FDIC Agency Meeting

  December 17, 2002 Board Room on the sixth floor of the FDIC Building located at 550 - 17th Street, N.W., Washington, D. C. Announcement 12/12/02

• Quarterly Banking Profile - Third Quarter 2002

  The Quarterly Banking Profile (QBP) is a quarterly publication that provides the earliest comprehensive summary of financial results for all FDIC-insured commercial banks and savings institutions. Quarterly Banking Profile 12/12/02

• FFIEC Reports that the September 30, 2002 Uniform Bank Performance Report are Online

  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 12/12/02

• Federal Register Publishes Correction to its Annual Independent Audit Requirements

  The OTS published in the Federal Register of November 25, 2002, a document concerning amending its annual independent audit requirements for small, non-public, highly rated savings associations that voluntarily obtain independent audits. Inadvertently, the comment period was incorrectly stated. The correct date is January 27, 2003. 67FR75809 (pdf) 67FR75809 (txt) 12/11/02

• Federal Reserve Financial Services Reserve Maintenance Manual

  This manual sets out the fundamental rules of reserve calculation and account maintenance for institutions that file the Report of Transaction Accounts, Other Deposits and Vault Cash (FR 2900), either weekly or quarterly. The Reserve Maintenance Manual was completely revised in 1998 to reflect the adoption of a single master account structure and the return to lagged reserve maintenance for weekly FR 2900 reporters. Reserve Maintenance Manual 12/11/02

• FDIC Pulished FIL on Final Rule Implementing Information-Sharing Section of USA PATRIOT ACT

  As earlier reported on BOL, FinCEN is issuing this final rule to encourage information sharing among financial institutions and Federal government law enforcement agencies for the purpose of identifying, preventing, and deterring money laundering and terrorist activity. FDIC:FIL-135-2002 12/11/02

• FTC Halts Texas-Based Advance-fee Loan Scheme

  The FTC announced a stipulated final court order settling the case against Antoine Peissel, doing business as The Woodway Group (Woodway), who told consumers they were guaranteed to receive a cash loan or line of credit - but only after paying an up-front $79 fee. FTC Press Release 12/9/02

• New Consumer Information Pamphlets

  New consumer information pamphlets are available through the Web site of the Federal Reserve Bank of Philadelphia. The seven brochures are: Know Your Depository Institution; What Your Credit Report Says About You; Applying for Credit and Charge Cards; Bank Products: What's Insured and What's Not; Your Credit Rights; How to Establish, Use, and Protect Credit; and Your Credit Rating. New Consumer Information Pamphlets 12/9/02

• FDIC Issues SSCRA Guidance Reminder

  On December 9, 2002 the FDIC issued a FIL reminding financial institutions of the requirements under the SSCRA and provided a summary of the key provisions of the Act. The FDIC noted, that it is anticipated in light of the frequent call-up of military personnel, financial institutions will receive numerous questions regarding the SSCRA. FDIC:FIL-134-2002 12/9/02

• Revised Standard Flood Hazard Determination Form

  This bulletin announces and provides the revised Standard Flood Hazard Determination form, "FEMA Form 81-93, Oct 02," which replaces "FEMA Form 81-93, Oct 98." Either form may be used prior to March 1, 2003, when use of the revised form becomes mandatory. OCC 2002-46 Form 12/9/02

• OTS Delays Effective Date For Parity Act Revisions

  The OTS announced that it is delaying for a period of six months the effective date of a final rule that will remove prepayment and late fee rules from the list of OTS regulations applicable to state housing creditors under the Alternative Mortgage Transaction Parity Act. The final rule, originally scheduled to become effective on January 1, 2003, will now take effect July 1, 2003. OTS 02-44 12/9/02

• Federal Register Publishes Proposed Revisions to the Official Staff Commentary on Regulation Z

  The proposed update discusses the status of certain credit card-related fees and the rules for replacing an accepted credit card with one or more cards. [This was previously announced on BOL] 67FR742618 (pdf) 67FR742618 (text) 12/9/02

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

  The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 37), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-133-2002 12/6/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on AmercianWest Bank, Spokane, Washington, and National Bank of Commerce, Memphis, Tennessee, are in circulation. FDIC:FIL-132-2002 12/6/02

• FDIC Issues December 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 September 2002. FDIC:PR-129-2002 12/6S/02

• Interagency Advisory on the Accounting Treatment of Accrued Interest Receivable Related to Credit Card Securitizations

  The OCC, FRB, FDIC and OTS are issuing this advisory to clarify the appropriate accounting treatment for banks and thrift institutions (institutions) that securitize credit card receivables and record an asset commonly referred to as Accrued Interest Receivable (AIR). OCC 2002-45 FDIC:FIL-131-2002 Advisory 12/5/02

• FRB Announces revisions to its policy and procedures for sponsoring private-sector organizations

  The Federal Reserve Board announced revisions to its policy and procedures for sponsoring private-sector organizations under federal programs that provide priority telecommunications services to entities that are important to national security and emergency preparedness. FRB Press Release 12/4/02

• Four FedACH Distributions Per Day

  Four FedACH Distributions Per Day 12/4/02

• Premium Plus Products Effective January 2, 2003

  Premium Plus Products Effective January 2, 2003
  12/4/02

• Comptroller of the Currency Fees for Year 2003

  This bulletin informs all national banks, federal branches and agencies, and District of Columbia banks of fees charged by the Office of the Comptroller of the Currency (OCC) for year 2003. OCC: 2002-44 (doc file) 12/4/02

• OTS Announces 109 CRA Exams Scheduled for First Quarter 2003

  The OTS announced that 109 savings associations are scheduled for Community Reinvestment Act (CRA) examinations during the first quarter of 2003. OTS 02-43 12/4/02

• FDIC's 2003 Budget 8 Percent Lower Than 2002

  The Board of Directors of the FDIC approved a 2003 Corporate Operating Budget of $1,070.5 million and a multi-year Investment Budget of $70.4 million. Estimated spending for 2003 will be $1.1 billion, 8 percent lower than the 2002 budget. FDIC:PR-128-2002 12/4/02

• FDIC Ask for Input on Website

  Website User Questionnaire 12/4/02

• OCC Issues First Quarter 2003 CRA Examination Schedule

  The OCC released its schedule of Community Reinvestment Act (CRA) examinations to be conducted in the first quarter of 2003.OCC:NR 2002- 91 12/3/02

• FRB Issues Proposed Revisions to the Official Staff Commentary on Regulation Z

  The proposed update discusses the status of certain credit card-related fees and the rules for replacing an accepted credit card with one or more cards. FRB Press Release 12/2/02

• FinCEN Issues Guidance on Recordkeeping Requirements under 31 C.F.R. §103.29

  FinCEN receives numerous questions concerning compliance with the Bank Secrecy Act (BSA) recordkeeping requirement found in 31 C.F.R. §103.29. This section requires financial institutions to verify a customer's identity and retain records of certain information prior to issuing or selling bank checks and drafts, cashier's checks, money orders and traveler's checks when purchased with currency in amounts between $3,000 and $10,000 inclusive. Press Release 12/2/02

• FRB Publishes Final Regulation W that comprehensively implements sections 23A and 23B

  Sections 23A and 23B and Regulation W restrict loans by a depository institution to its affiliates, asset purchases by a depository institution from its affiliates, and other transactions between a depository institution and its affiliates. Regulation W unifies in one public document the Board's interpretations of sections 23A and 23B. FRB Press Release 12/2/02

• OCC Publishes Questions Concerning Applicability and Enforcement of State Laws; Contacts from State Officials

  This advisory letter describes the general principles that determine whether a state law is applicable to a national bank. It also affirms that the OCC's visitorial powers with respect to national banks are exclusive except when federal law makes provision for another regulator to have a role. OCC:AL 2002-9 12/2/02

• Establishment of private-sector group to recommend steps to mitigate risk in the clearance and settlement of U.S. government securities

  The Federal Reserve Board announced that it has established a private-sector working group to recommend steps to mitigate risks in the clearance and settlement of U.S. government securities. FRB Press Release 12/2/02

• FDIC Consumer News

  Smart ways to use credit and debit cards, plus how long to keep bank records. FDIC Consumer News 12/2/02

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

  Counterfeit cashier's checks drawn on Baltimore Trust Company, Selbyville, Delaware, and on First State Bank of California, Granada Hills, California, are in circulation. In addition, a lot of 500 money orders issued by Bank of America, Dallas, Texas, has been reported stolen. FDIC:FIL-128-2002 12/2/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-129 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-129-2002 12/2/02

• FDIC Issues First 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 first 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. FDIC:PR-127-2002 12/2/02

A Bureau Blog article, "Getting a grip on income tax season," provides solutions for filing tax returns, with tips on where to get free help, preparing one's own return, whether filing is even required, and how to handle a refund. The article also identifies organizations that provide services to taxpayers.

• Moratorium on PATRIOT Act Section 314(a) Requests

  The regulatory agencies have issued a joint notice formalizing what we previously told you -- that there is now a moratorium on information requests relating to possible terrorists and money launderers under Section 314(a) of the USA PATRIOT Act. During the moratorium, the government will be working to improve the process for the requests. It also confirms that future requests from the FBI will be processed through the Section 314(a) process, rather than utilizing the former Control List process. Most importantly, if your financial institution has not received any requests from FinCEN via e-mail or facsimile since November 4, 2002, you need to contact your primary federal supervisory agency to be added to FinCEN's contact list. You will need to provide: financial institution name and charter number or other identifier; point of contact name and title, mailing (street number, P.O. box, city, state and zip code) and e-mail addresses; and telephone and facsimile numbers. BOL AML Links, Joint Agency Notice 11/27/02

• Electronic Federal Tax Payment System (EFTPS) Users Have Fewer IRS Penalties

  According to research conducted by the Internal Revenue Service, businesses that pay their taxes using the Electronic Federal Tax Payment System (EFTPS) have significantly fewer IRS penalties assessed. News Release IR-2002-128 11/27/02

• FDIC Issues Notice of Charges Against Certain Former Officers and Directors of the Failed Connecticut Bank of Commerce, Stamford, Connecticut

  The FDIC has issued a Notice of Charges seeking to impose civil money penalties (CMPs) totaling $5.25 million against a group of former officers and directors of Connecticut Bank of Commerce, Stamford, Connecticut (CBC). CBC was closed by the Connecticut Banking Commissioner on June 26, 2002, and the FDIC was appointed as receiver. FDIC:PR-125-2002 11/27/02

• FDIC Makes Public October Enforcement Actions; No Administrative Hearings Scheduled

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in October. No administrative hearings are scheduled for December. FDIC:PR-126-2002 11/27/02

• Quarterly Banking Profile - Commercial Banking Performance, Third Quarter 2002

  FYI Speech 11/27/02

• The FDIC/OTS Summary of Deposits (SOD) system has been updated with the June
  30, 2002

  The Summary of Deposits (SOD) contains deposit data for more than 85,000 branches/offices of FDIC-insured institutions. The FDI) collects deposit balances for commercial and savings banks as of June 30 of each year, and the OTS collects the same data for savings institutions. Summary of Deposits 11/27/02

• Rewards for Justice

  International terrorism is financed by money sent to terrorist from sources around the world. The U.S. government is offering a reward of up to $5 million for information leading to the dismantling of any system used to finance a terrorist organization and information leading to the arrest or conviction of those who planned or aided in any act of terrorism against U.S. persons or property. Learn more about the Treasury Department's Rewards for Justice program 11/26/02

• FinCEN Issues Report on Informal Value Transfer Systems

  FinCEN issued its report on Informal Value Transfer Systems (IVTS), including hawala, in its ongoing effort to gain a more complete understanding of the nature of these systems. Hawala, an IVTS, is a method of monetary value transmission that is used in some parts of the world to conduct remittances, most often by individuals who seek to legitimately send money to family members in their country of origin. FinCEN Press Release Report 11/26/02

• OTS Issues Interim Rule that Amends its Annual Independent Audit Requirements

  This change will make OTS's requirements more consistent with those of the other federal banking agencies and will avoid the potential regulatory burden that could otherwise result from other regulatory action. 67FR70530 (text) 67FR70530 (pdf) Correction 11/25/02

• Change in release date for statistical release G.17 "Industrial Production and Capacity Utilization"

  The FRB announced that it will publish the annual revision to the G.17 statistical release, Industrial Production and Capacity Utilization, on Thursday, December 5 at 2 p.m. EST. The revision was previously scheduled for release on November 26. FRB Press Release 11/25/02

• Order of Prohibition against Eduardo Del Rio

  The FRB announced the issuance of an Order of Prohibition against Eduardo Del Rio, a former employee and institution-affiliated party of Deutsche Bank, AG, New York, New York. FRB Press Release 11/25/02

• OCC Issues Alert on Illegal References to Bank Affiliation and Bank Supervisor

  The OCC is advising banks that Globe Trust Financial, Inc. (Globe) and Pacific Trust Financial (Pacific) are falsely representing on their respective Internet Web sites that they are regulated by the Office of the Comptroller of the Currency (OCC). The OCC does not supervise nor has the OCC issued a banking charter to Globe or Pacific. OCC:Alert 2002-13 11/25/02

• Thrift Industry On Pace For Record Year

  The OTS reported earnings for the nation's thrift industry of $2.97 billion in the third quarter of 2002, up 14 percent over the year-ago third quarter, and five percent over the second quarter of 2002. The number represents the second most profitable quarter ever for the industry. OTS 02-42 11/25/02

• FFIEC Reports that the September 30, 2002 Uniform Bank Performance Report are Online

  UBPR reports for individual banks are usually available 30 days after the call report due date. September 30, 2002 UBPR
  Call report is due October 30, 2002 UBPR available online December 6, 2002. FRB Press Release 11/25/02

• Regulators Propose Revisions to the Reports of Condition and Income (Call Report)

  These changes relate to the content of the Call Report itself, the submission deadline for certain banks, and the agencies' process for validating and releasing the data that banks report. FDIC:FIL-126-2002 11/22/02

• Banking on Our Future Across America

  FDIC Chairman Don Powell and other Administration officials took part in the activities of the final day of Operation HOPE's Banking on Our Future Across America 2002 financial literacy initiative. Press Release 11/22/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-127 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-127-2002 11/22/02

• Jennifer Kelly Named Deputy Comptroller For Mid-Size Banks

  The OCC announced that Jennifer C. Kelly has been named Deputy Comptroller for Mid-Size Banks. In her new assignment, Ms. Kelly will report directly to Timothy W. Long, Senior Deputy Comptroller for Mid-Size/Community Banks. OCC:NR 2002- 90 11/22/02

• 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. November 2002 11/22/02

• FDIC Issues Special Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on Horizon Bank, Bellingham, Washington and Hudson United Bank, Mahwah, New Jersey, are currently in circulation. FDIC:FIL-123-2002 FDIC:FIL-125-2002 11/21/02

• FDIC FIL's about OFAC Change

  The FDIC has published FIL-122 and FIL-124 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-124-2002 FDIC:FIL-122-2002 11/21/02

• FDIC Issues Final Ruleon Minimum Standards of Integrity and Fitness for an FDIC Contractor

  The Federal Deposit Insurance Corporation is issuing this rule which governs conflicts of interest, ethical responsibilities, and use of confidential information by independent contractors seeking to do business with the FDIC. 67FR69990 (text) 67FR69990 (pdf) 11/20/02

• OCC Releases CRA Evaluations For 44 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of October 15 through November 14, 2002. 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 2002- 89, Evaluations 11/20/02

• OCC Announces 18 New Enforcement Actions and 5 Terminations

  The OCC announced 18 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 5 terminations of existing enforcement actions. OCC:NR 2002-88 11/20/02

• FDIC Chairman Donald E. Powell Remarks at Operation Hope's Banking on Our Future Across America 2002 Closing Ceremony H.D. Woodson High School

  Speech FDIC:PR-123-2002 11/20/02

• Annual Report on Indebtedness of Executive Officers and Principal Shareholders to Correspondent Banks (FFIEC 004)

  The FFIEC 004 report is designed to assist an institution's executive officers and principal shareholders in complying with the federal banking agencies' regulations implementing the Act. FDIC:FIL-121-2002 11/20/02

• CRA/HMDA Software Downloads

  You can now download the latest version of the CRA and HMDA data entry software from the web.Download Page 11/19/02

• Federal Reserve Board Released the Minutes of its Discount Rate Meetings

  The Federal Reserve Board released the minutes of its discount rate meetings from September 3 to September 23, 2002. Minutes,     67FR69467 (text) 67FR69467 (pdf) 11/18/02

• FedACH Information Services via FedLine for the Web Demo

  You can now access FedACH Information Services on the Internet. This latest service addition to FedLine for the Web® makes it possible for you to use the web to track, research and account for your institution's FedACH activity. News Release 11/18/02

• FedACH Third Quarter System Quality and Volume Statistics

  Chart 11/18/02

• Holiday District Announcement

  The Federal Reserve Banks will be closed on Thursday, November 28, for Thanksgiving Day. District Chart 11/18/02

• Electronic Document-to-Follow (DTF) Service Begins November 18

  The Federal Reserve System is pleased to announce that the electronic exchange of documentation supporting adjustment requests, also known as Documents-to-Follow (DTFs), will be implemented on November 18, 2002. DTF 11/18/02

• 2003 Industry Events

  The Federal Reserve attends many industry meetings and conferences throughout the year. Click here for the 2003 events. 11/18/02

• FDIC Board Member John M. Reich Becomes Board Vice Chairman

  John M. Reich today became Vice Chairman of the Federal Deposit Insurance Corporation Board of Directors. Mr. Reich has served on the FDIC Board since January 16, 2001. FDIC:PR-122-2002 11/18/02

• OCC Publishes Correction to Final Rule on Assessment Fees

  As previously announced in the Federal Register, the OCC is amending the rules governing national bank assessments. This notice is a correction to the rule. OCC 2002-43, Correction 11/15/02

• Twenty-Five Largest Banking Companies: 3rd Quarter 2002

  The Twenty-Five Largest Banking Companies highlights the performance of the largest banking companies in the most recently completed quarter. The report is based on earnings announcements and other publicly available information and generally is published within 40 days of the completion of a calendar quarter. Twenty-Five Largest Banking Companies 11/15/02

• U.S. Lifts Financial Advisories on Marshall Islands, Niue and Russian Federation

  FinCEN notified U.S. financial institutions that, based on the improvements in their counter-money laundering sytems, the U.S. is withdrawing the FinCEN Advisories on Marshall Islands, Niue and Russian Federation Advisory Withdrawal - Issue 20A, Advisory Withdrawal - Issue 22A, Advisory Withdrawal - Issue 25A 11/15/02

• Current List of OCC Alerts on Unauthorized Banking

  This issuance provides an alphabetical listing of entities identified in previous OCC alerts issued from 1996 to the present. These entities are or have been engaged in unauthorized banking, both offshore and domestic. The list is intended to be an aid in the search for names of such entities. A brief description is included to indicate the nature of the problem. OCC:Alert 2002-12, Semi-Annual Listing 11/15/02

• Treausry Publishes Correction to Previously Published USA PATRIOT Act Guidance on Section 352

  The previously published document inadvertently omitted a minor change to a cross-reference and a minor change that would avoid listing the affected financial institutions twice in the same section. This correction adds both changes. 67FR68935 (text) 67FR68935 (pdf) 11/14/02

• FDIC Announces Steps to Help Rebuild Areas Affected by Recent Tornadoes

  The FDIC is encouraging banks to work constructively with borrowers affected by the tornadoes who are experiencing difficulties beyond their control. The FDIC has prepared guidelines stating that extending repayment terms, restructuring existing loans or easing terms for new loans, if done in a manner consistent with sound banking practices, can both contribute to the health of the community and serve the long-term interests of the lending institution. FDIC:FIL-120-2002 Guidelines 11/14/02

• FFIEC Publishes Notices and Drafts

  FFIEC publishes notices on FFIEC 031, FFIEC 041 and FFIEC 009/009a. Also published are the FFIEC 031 and FFIEC 041 Draft Reporting Form Notices 11/14/02

• Bank Accounting Advisory Series

  This guidance is the latest entry in the Bank Accounting Advisory Series, which expresses the OCC's current views on accounting topics of interest to national banks. The document answers questions about purchase accounting, loans, sales and servicing of assets, loan origination, leases, investment securities, other assets, computer costs, income taxes, and capital. Bank Accounting Advisory Series 11/13/02

• FDIC to Market $42 Million Loan Portfolio from the Failed Bank of Alamo, Alamo, Tennessee

  The FDIC has announced that it will immediately market a $42 million loan portfolio from the failed Bank of Alamo, Alamo, Tennessee. The portfolio consists of performing and non-performing consumer, commercial, commercial real estate and agricultural loans. FDIC:PR-121-2002 11/13/02

• Perspectives on the U.S. Housing Market

  November 15, 2002: Half-day symposium cosponsored with National Capital Chapter, National Association for Business Economics. Perspective 11/13/02

• FDIC Approves the Payout of Insured Deposits of Bank of Alamo, Alamo, Tennessee

  The FDIC Board of Directors issued an order authorizing the agency to place Bank of Alamo in receivership by exercising its self-appointment powers granted by Congress in 1991. Today, the FDIC closed Bank of Alamo and took possession of the bank in its capacity as receiver. FDIC:PR-120-2002, FDIC Information for The Bank of Alamo 11/11/02

• 2002 CRA/HMDA Reporter

  This newsletter provides information to assist in the collection and reporting of CRA/HMDA data. Reporter 11/8/02

• FRB Issues Final Rule to Regulation A that Replace the Existing Adjustment and Extended Credit
  Programs

  The final rule leaves the existing seasonal credit program essentially unchanged. The final rule is intended to improve the functioning of the discount window and does not indicate a change in the stance of monetary policy. The FRB also is amending the penalty provision of Regulation D, which is calculated based on the discount rate, to conform the calculation of penalties for reserve deficiencies to the new discount rate framework. 67FR67777 11/7/02

• FOMC Lowers Fed Funds Rate

  The Federal Open Market Committee decided to lower its target for the federal funds rate by 50 basis points to 1 1/4 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 3/4 percent. FRB Press Release, Press Release
  11/7/02

• Notice of Agency Meeting

  The FDIC Board of Directors will meet in open session on November 12, 2002.
  Notice 11/7/02

• Comptroller Hawke Says Thrift Charter Remains Viable Despite Convergence of Banking and Thrift Industries

  Comptroller of the Currency John D. Hawke, Jr. said that while the banking and thrift industries have converged to a great extent,
  the thrift charter remains as viable as ever and there is no compelling reason to merge the agencies that supervise national banks and thrifts. OCC:NR 2002-86 11/6/02

• OCC Directory Highlights Bank Community Development Investments

  The OCC published its annual directory of community development investments made during 2001. The National Bank Community Development Investments, 2001 Directory lists and summarizes all of the national bank investments made under investment authority provided national banks under the National Bank Act and part 24 of the OCC regulations to help revitalize and rebuild communities throughout the country by making investments that support a public welfare purpose. OCC:NR 2002- 87 11/6/02

• Chairman Donald E. Powell FDIC Housing Trends and The Economy: Implications for Financial Institutions America's Community Bankers, November 5, 2002, San Francisco, California Financial Institution Letters: 2002 Financial

  FDIC:PR-117-2002 11/6/02

• FDIC Issues November 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 August 2002. FDIC:PR-118-2002 11/6/02

• Connecticut Couple Indicted for Concealing Assets From FDIC

  FDIC Inspector General Gaston L. Gianni, Jr., has announced that Gary S. Blonder and Laura Z. Schwartz of West Hartford, CT, were indicted on October 31 by the U.S. Attorney for the District of Connecticut on charges related to concealing assets from the FDIC and making false statements to the U.S. government. FDIC:PR-119-2002 11/6/02

• Federal Register Publishes USA PATRIOT Act Guidance on Section 352

  As earlier report on BOL, FinCEN is extending the provision in its regulations that temporarily defers, for certain financial institutions, the application of the anti-money laundering program requirements in section 352 of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001. 67FR67547 (txt) 11/6/02

• FTC Staff Comments on Proposed Amendments to Regulations Implementing RESPA

  Comment Stresses Support for HUD's Goal of Simplifying the Mortgage Process and Enhancing Competition, Urges Testing to Ensure Enhanced Consumer Comprehension of Mortgage Process FTC Press Release 11/5/02

• Guidance on ACH and OFAC

  NACHA has issued an 8-page document to clarify the OFAC compliance obligations of parties to ACH transactions entitled "The ACH Network and OFAC Compliance". 11/5/02

• FedLine for the Web Cash Services Demos

  11/5/02

• Cash Order and Deposit Deadlines

  11/5/02

• Regulators Request Comment on Revisions to SAR

  Regulators are soliciting comments concerning the Suspicious Activity Report, which is being revised to include two new check boxes in Part III, box 35, suspicious activities, for terrorist financing and identify theft and to update the language in the Safe Harbor provision to that contained in the PATRIOT Act. 67FR67239 (text) 67FR67239 (pdf) 11/4/02

• Remarks by Chairman Donald E. Powell FDIC The Bankers Club of Chicago, October 31, 2002

  FDIC:PR-115-2002 11/4/02

• Independent Community Bankers of America Join FDIC's Money Smart Alliance Program

  The Independent Community Bankers of America (ICBA) became the newest member of the FDIC's Money Smart Alliance Program. The program, which is designed to increase financial literacy in communities where it is most needed, uses the FDIC's Money Smart financial education curriculum to teach adults the basics of money management. FDIC:PR-116-2002 11/4/02

• 2004 Preliminary HMDA file formats

  The FFIEC has posted the preliminary file specifications for 2004 HMDA data as well as 2004 HMDA edits. 11/1/02

• FRB Approves Fee Schedules for Federal Reserve Bank Payment Services

  The price level for Federal Reserve priced services will increase less than 1 percent in 2003 from 2002 levels. Because of fee reductions in electronic services in recent years, the overall price level has declined by about 2 percent since 1996. FRB Press Release Notice 11/01/02

• FRB Publishes Final Rule Amending Regulation A

  The FRB approved a final rule that revises the Federal Reserve's discount window programs, which provide credit to help depository institutions meet temporary liquidity needs. FRB Press Release, Press Release Final Rule 11/01/02

• FRB Issues Final Regulation W that Comprehensively Implements Sections 23A and 23B

  The purpose of the statute and the rule is to limit a bank's risk of loss in transactions with affiliates and to limit a bank's ability to transfer to its affiliates the benefits arising from its access to the Federal safety net. FRB Press Release 11/01/02

• FDIC Organizational Directory

  Comprehensive listing of FDIC staff, offices and phone numbers. Directory 11/01/02

OCC Bulletin 2014-2 has been issued to announce the update of the "Mortgage Banking" booklet of the Comptroller's Handbook. The booklet—

• provides updated guidance to examiners and bankers on assessing the quantity of risk associated with mortgage banking and the quality of mortgage banking risk management
• includes wholesale changes to the functional areas of production, secondary marketing, servicing, and mortgage servicing rights to incorporate recent lessons learned and regulatory changes
• addresses recent amendments to Regulation X and Regulation Z issued by the Consumer Financial Protection Bureau (CFPB), as well as other statutory and regulatory changes, including those directed by the Dodd-Frank Act