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An OCC News Release has announced two workshops in Houston to be held on March 11–12, 2014. The "Compliance Risk" and "Risk Assessment" workshops are designed exclusively for directors of institutions supervised by the OCC. The fee is $99 for each workshop, with attendance limited to 35 participants per session. Additional information and online registration are available.

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

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in September. One administrative hearing is scheduled for November. FDIC: PR-114-2002 10/31/02

• OCC Sends Advisory Letter on FinCEN Patriot Act Communication System

  The news release announces FinCEN's new electronic communications system, the Patriot Act Communication System (PACS). PACS allows participating financial institutions to file Currency Transaction Reports and Suspicious Activity Reports quickly and securely over the Internet. OCC:AL 2002-8 10/31/02

• OTS Approves Citibank Acquisition Of California Federal Bank

  The OTS announced that it has approved an application by Citigroup, Inc., to organize a new federal savings bank, Citibank (West), FSB, to acquire Golden State Financial Corp.'s subsidiary, California Federal Bank, FSB. OTS 02-41 10/30/02

• Approval of proposal of Citigroup

  The Federal Reserve Board announced its approval of the proposal by Citigroup Inc., New York, New York, to acquire Golden State Bancorp Inc. and its subsidiary savings association, California Federal Bank, both of San Francisco, California. FRB Press Release 10/30/02

• Federal Reserve Financial Services Issues Memo on Implementation of Claim Adjustment Fee

  Effective January 2, 2003, a $.38 fee will be assessed for each individual debit and/or credit claim adjustment processed per securities account. Federal Reserve Financial Services Press Release 10/30/02

• OCC Takes Action Against ACE Cash Express, Inc. and Goleta National Bank

  The OCC announced that ACE Cash Express, Inc., and Goleta National Bank, Goleta, California, signed cease and desist orders requiring them to end unsafe and unsound payday lending activities and to pay $325,000 in civil money penalties. ACE is a third-party service provider for Goleta in the origination, servicing, and collection of the payday loans booked by the bank. ACE offers payday loans on behalf of Goleta in 18 states and the District of Columbia. OCC:NR 2002-85, Goleta Stipulation, Goleta Consent Order, ACE Stipulation, ACE Consent Order 10/30/02

• FinCEN Publishes Use of Currency Transaction Reports

  Report 10/29/02

• Thrift Interest Rate Risk Falls to Lowest Point Since 1998

  The OTS reported that only eight federal thrifts out of 917 — 0.9 percent — were at high risk from an adverse change in interest rates as of the end of the second quarter. That is down from 1.5 percent at the end of the first quarter — the industry's lowest exposure since 1998. OTS 02-40 10/29/02

• FDIC Reports Third Quarter 2002 Financial Results for Bank and Thrift Insurance Frauds

  The FDIC announced that the Bank Insurance Fund (BIF) reported comprehensive income (net income plus current period unrealized gains/losses on available-for-sale securities) of $944 million for the nine months ending September 30, 2002, compared to $859 million for the same period last year. Although net income declined by $341 million compared to last year, unrealized gains on available-for-sale securities increased by $426 million. The decline in net income primarily resulted from lower earnings on U.S. Treasury obligations and higher estimated losses for anticipated bank failure and litigation activity. As of September 30, 2002, the fund balance was $31.4 billion, up from $30.4 billion at year-end 2001. FDIC:PR-113-2002 10/28/02

• CIP Rules May Wait SIX MONTHS!

  The Treasury Department released an announcement late on October 25th that states that it will publish regulations called for by the PATRIOT Act within the next six months. It said "This includes not only regulations called for by section 352 of the Act, but also other provisions, such as section 326, which requires financial institutions to develop procedures for identifying and verifying the identity of accountholders." Treasury PO-3580 10/25/02

• Holiday District Announcements

  The Federal Reserve Banks will be closed on Monday, November 11, 2002, for Veterans Day. FR Financial Services 10/25/02

• Chairman Donald E. Powell FDIC South America and Emerging Risks in Banking Florida Bankers Association, Orlando

  Speech FDIC:PR-112-2002 10/25/02

• Approval of proposal of China Merchants Bank

  The Federal Reserve Board announced the approval of the application of China Merchants Bank, Shenzhen, People's Republic of China, to establish a representative office in New York, New York. FRB Press Release 10/24/02

• Amendment to Cease and Desist Order against United Central Bank

  The Federal Reserve Board announced the issuance of an Amendment to a Cease and Desist Order against the United Central Bank, Garland, Texas. FRB Press Release 10/24/02

• Treasury Sends Congress USA PATRIOT ACT Report

  Treasury acknowledges it's difficult for financial institutions to verify the identity of foreign nationals who open accounts. Learn what is recommended in "Treasury Sends Congress USA PATRIOT ACT Report". 10/23/02

• Canadian Company Targets U.S. Citizens with Phony Credit Card Offers for an Advance Fee

  The FTC has charged a Toronto-based company with eight telemarketing boiler rooms with operating a fraudulent advance-fee credit card business. The defendants' telemarketers told consumers that they would receive pre-approved MasterCard or Visa credit cards with low interest rates, credit limits of $2,000 or $2,500, and no annual fees. Consumers paid the defendants by agreeing to have their bank accounts debited for the advance fee of $189 to $219. FTC Press Release 10/23/02

• Federal Reserve to sponsor conference on "Banking Opportunities in Indian Country"

  The Federal Reserve Board, along with the Federal Reserve Banks of Chicago, Minneapolis, Kansas City, and San Francisco, will sponsor a conference this fall to explore ways to encourage banking opportunities in tribal communities. "Banking Opportunities in Indian Country" will be held November 18-20 in Scottsdale, Arizona. The conference will focus on methods and resources for encouraging initiatives and partnerships that increase access to credit and capital and strengthen local economies. FRB Press Release 10/23/02

• Comptroller Hawke Says Reforming the System of Funding Bank Supervision Would Improve Safety and Soundness and Strengthen Dual Banking System

  Comptroller of the Currency John D. Hawke, Jr. said that the most serious flaw in the current system of funding bank supervision is that it undermines safety and soundness and the health of the dual banking system. OCC:NR 2002- 84, Speech 10/23/02

• Depository Institution Testing (DIT) Test Schedule 2003

  Testing dates are provided for First Quarter 2003. Announcement 10/22/02

• Treasury Tax and Loan Service

  Annoucement 10/22/02

• OCC Announces Four Appointments in Bank Supervision

  The announced that David D. Gibbons has been named Deputy Comptroller for Special Supervision, succeeding Jerilyn Gilland, who will become one of two Deputy Comptrollers supervising the newly realigned district headquarters in Dallas. OCC:NR 2002- 83 10/22/02

• Former Thrift Holding Company Official Settles OTS Charges

  Charles E. Hurwitz and two companies he controls – MAXXAM Inc. and Federated Development Co. – settled charges brought against them by the Office of Thrift Supervision (OTS). Mr. Hurwitz and the two companies consented to an order and agreed to pay the Savings Association Insurance Fund $206,000. They also agreed to restrictions on any future activities with a federally insured depository institution. OTS 02-39 10/21/02

• FTC Offers Guidance on How to Protect Customer Information

  To help businesses understand and comply with its May 2002 Financial Information Safeguards Rule, the Federal Trade Commission has issued a new "Facts for Business" publication, Financial Institutions and Customer Data: Complying with the Safeguards Rule. FTC Press Release 10/18/02

• OCC Publishes Final Rule Regarding Information Sharing

  This bulletin announces the final rule that implements section 314 of the USA PATRIOT Act. The two-part rule facilitates the exchange of information (1) between government and financial institutions and (2) among financial institutions. [This was earlier reported on BOL] OCC 2002-42, Final Rule 10/18/02

• OCC Publishes Final Rule to Implement New Provisions of the BSA

  The final rule would prohibit certain financial institutions from providing correspondent accounts to foreign shell banks. [This was earlier reported on BOL] OCC 2002-41, Final Rule 10/18/02

• 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. October 2002 10/18/02

• Former Mississippi Bank CEO Pleads Guilty to Deceiving FDIC, Bank Examiners

  FDIC Inspector General Gaston L. Gianni, Jr., has announced that William Hugh "Buck" Tatum, Jr., Tiplersville, MS, pled guilty on October 10 to a Criminal Information charging him with one count of money laundering and two counts of making false statements in bank records to deceive the FDIC and FDIC examiners. FDIC:PR-110-2002 10/18/02

• Texas Man Guilty of Scheme to Defraud BestBank, Boulder, Colorado; Scam Cost FDIC $9 Million

  FDIC Inspector General Gaston L. Gianni, Jr., has announced that William Brooks, South Lake, Texas, was convicted on October 15, 2002, of 46 counts of bank fraud, wire fraud and money laundering for implementing a scheme to defraud the failed BestBank, Boulder, CO, and Pueblo Bank and Trust Company, Pueblo, CO, which acquired the insured deposits of the failed institution from the FDIC. The scheme ultimately cost the FDIC over $9 million. FDIC:PR-111-2002 10/18/02

• Written agreement with O.A.K. Financial Corporation and Byron Center State Bank

  The Federal Reserve Board announced the execution of a Written Agreement by and among O.A.K. Financial Corporation, Byron Center, Michigan; the Byron Center State Bank, Byron Center, Michigan; the Federal Reserve Bank of Chicago; and the State of Michigan Office of Financial and Insurance Services. FRB Press Release 10/18/02

• FinCEN Issues Proposed Rule to Require Currency Dealers and Exchangers to Report Suspicious Transactions

  The proposal also requires 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. The proposed amendments constitute a further step in the creation of a comprehensive system for the reporting of suspicious transactions by the major categories of financial institutions operating in the United States, as a part of the counter-money laundering program of the Department of the Treasury. 67FR64075 (text) 10/17/02

• OCC Announces 13 New Enforcement Actions and 2 Terminations

  The OCC announced 13 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 2 terminations of existing enforcement actions. OCC:NR 2002- 81 10/17/02

• OCC Releases CRA Evaluations For 36 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of September 15 through October 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- 82 10/17/02

• FDIC Chairman Powell Calls for New, Streamlined Supervisory Structure to Oversee Financial Services

  Under the proposal, the banking industry, the securities industry, and those companies that choose an optional federal insurance charter would each have its own regulator, which would meet regularly with the Treasury and the Federal Reserve to make decisions on policy, as well as on systemic risk, permissible activities and product regulation. FDIC:PR-109-2002 Speech: PR-108-2002 10/17/02

• HOEPA Loans

  The Federal Reserve has published an update to its H.15 report, giving information on the yield on Treasury securities as of October 15, 2002. You'll need to check the APRs that will be in effect on your November loans against these rates, using the guidance in Reg Z's Section 226.32 to determine whether the loans are subject to HOEPA. FRB's H.15 Release , Reg Z, Section 226.32 10/16/02

• Comptroller Explains the Structure of U.S. Bank Supervision

  Comptroller of the Currency John D. Hawke, Jr. outlined the complexity and rationale of the structure of U.S. bank supervision before an audience at the People's Bank of China. OCC:NR 2002- 80, Speech 10/16/02

• Second Edition of the FDIC's Quarterly Letter to Stakeholders

  This edition highlights the FDIC's success in meeting our priorities during the third quarter of 2002. FDIC:FIL-119-2002 10/16/02

• FATF Updates List of Noncooperative Countries and Territories

  Russia, Dominica, Niue, and Marshall Islands removed from FATF's list of noncooperative countries and territories. FATF Press Release 10/15/02

• FATF issues best practices guidelines to help prevent non-profit organizations from being misused by terrorists

  Guidelines 10/15/02

• FATF issues for public consultation a proposal for an Interpretative Note to Special Recommendation VII: Wire Transfers

  Proposal 10/15/02

• Historic Settlement on Non-prime Consumer Lending Issues

  Household International has reached a preliminary agreement with a 43 state group of state attorneys general and regulatory agencies, representing a nationwide resolution of issues related to the company's non-prime consumer lending businesses. Under the terms of the agreement, Household will provide up to $484 million to resolve consumer complaints. The HFC/Beneficial branch based business will also reduce prepayment fee provisions to two years and give borrowers clearer disclosures earlier in the loan application process so that they better understand their product choices and proposed loan terms and features. As part of the settlement, an innovative "secret shopper" program developed by Household will closely monitor every step of the HFC/Beneficial branch based loan origination and closing process. Provisions of the Settlement,   Household press release,   Statement from the Iowa Attorney General 10/14/02

• Treasury Department Provides Guidance on Compliance with Section 326 of USA PATRIOT ACT

  The Treasury Department is advising all financial institutions that they will not be required to comply with section 326 of the USA PATRIOT ACT or the proposed rules issued by Treasury and the federal functional regulators on July 23 until final implementing regulations are issued and become effective. PO-3530 10/14/02

• Appointment of Chairmen and Deputy Chairmen of Federal Reserve Banks for 2003

  Each Reserve Bank has a nine-member board of directors. The Board of Governors in Washington appoints three of these directors and designates one of its appointees as chairman and a second as deputy chairman. FRB Press Release 10/14/02

• Illinois-Based Companies Charged with Fraudulent Telemarketing and Placing Unwanted Calls Settle Federal Charges

  The FTC announced that it, along with the Illinois Attorney General's office, has reached a settlement with 1st Financial Solutions, Inc., which allegedly used a nationwide network of telemarketers to sell consumers major credit cards, cards that no one ever received. The settlement requires 1st Financial, three individuals and 10 other companies to post a $1 million bond before engaging in telemarketing. FTC Press Release 10/11/02

• FDIC serves on international committees that analyze banking supervision and deposit insurance issues

  The Research and Guidance Committee, International Association of Deposit Insurers, is drafting guidelines to enhance deposit insurance systems' effectiveness. The FDIC, a founding member of the International Association, serves as a member of the Executive Council. International Activities10/11/02

• 2nd Edition of FDIC Letter to Stakeholders

  This edition highlights the FDIC's success in meeting our priorities during the third quarter of 2002. FYI 10/11/02

• New Examination Procedures for Assessing Information Technology Risk

  Over the last several years, many financial institutions have moved away from traditional mainframe-oriented computer processing environments and increased their reliance on newer technologies, such as networks, the Internet and enterprise-wide processing. As a result, the Federal Deposit Insurance Corporation (FDIC) is launching a new program for assessing information technology (IT) risk at FDIC-supervised financial institutions. The program incorporates a new philosophy for categorizing institutions' use of technology and their consequential exposure to technology risk, along with updated and more risk-focused IT examination procedures. FDIC:FIL-118-2002 10/10/02

• FDIC and the National Bankers Association Unite to Promote the Money Smart Curriculum

  The FDIC announced that the National Bankers Association (NBA) signed a Memorandum of Understanding to promote the use of Money Smart among its member banks. The announcement was made by FDIC Chairman Don Powell and by James Young, Chairman of the NBA, at the group's 75th annual convention in New Orleans. FDIC:PR-106-2002 10/10/02

• Remarks by Chairman Donald E. Powell Federal Deposit Insurance Corporation before the National Bankers Association

  Speech 10/10/02

• OCC Issues Correction to Fees Assessment Final Rule

  This final rule makes a correction to the final rule that the OCC published in the Federal Register on September 11, 2002 amending 12 CFR 8.2(a). That provision sets forth the formula for the semiannual assessment the OCC charges each national bank. 67FR62872 (text) 67FR62872 (pdf) 10/9/02

• FDIC to Study Future of Banking

  FDIC Chairman Don Powell announced his agency will conduct a major study on the future of banking in America. "Over the next year," Chairman Powell told the American Bankers Association, "we will study the underlying trends in the economy and the industry. We will look at what this suggests for the future, and identify emerging policy questions likely to confront both regulators and the industry over the next decade." FDIC:PR-103-2002 10/9/02

• FRB Approval of Proposal of Eurohypo Aktiengesellschaft

  The Federal Reserve Board announced today the approval of the application of Eurohypo Aktiengesellschaft, Frankfurt, Germany, to establish a branch in New York, New York, and representative offices in Chicago, Illinois, and Los Angeles, California. FRB Press Release 10/9/02

• FRB Issues Approval of Proposal of Fortis Bank

  The Federal Reserve Board announced today the approval of the application of Fortis Bank S.A./N.V., Brussels, Belgium, to establish branches in New York, New York, and Stamford, Connecticut. FRB Press Release 10/9/02

• Statement of FDIC Chairman Don Powell on the Release of 2002 Shared National Credit Review Data

  FDIC:PR-105-2002 10/9/02

• Bank Regulatory Agencies Find Adversely Rated Syndicated Loans Continue to Increase in 2002, but at Slower Rate than Previous Year

  The quality of large syndicated bank loans continued to deteriorate this year, but at a slower rate than was evident in 2001, according to the 2002 Shared National Credit (SNC)1 review, which federal bank regulators released. The deterioration was consistent with general economic, sectoral, and credit market trends. FDIC: PR-104-2002 , OCC:NR 2002-79, FRB Press Release , FYI 10/9/02

• FRB Issues Final Rule to Amend Reg D to Reflect the Annual Indexing

  The final rule will reflect the annual indexing of the low reserve tranche and the reserve requirement exemption for 2003, and announces the annual indexing of the deposit reporting cutoff level that will be effective beginning in September 2003. 67FR62634 (text) 67FR62634 (pdf) 10/8/02

• Comptroller Addresses Corporate Reform for Banks

  The prospect of financial conglomerates owning banks underscores the need to safeguard bank interests in the activities of diversified financial holding companies, Comptroller of the Currency John D. Hawke said. OCC:NR 2002- 78, Speech 10/8/02

• FDIC Issues October 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 July 2002. FDIC:PR-102-2002 10/8/02

• FATF Plenary to Meet October 9 - 11, 2002

  The FATF, the world's leading anti-money laundering body, willmeet in Plenary session October 9 - 11 in Paris. Participants will focus on sound anti-moneylaundering practices including those related to the financing of terrorism, the Non-Cooperative Countries and Territories, and the review of the FATF 40 Recommendations to combat money laundering. Press Release 10/8/02

• Minutes of FRB discount rate meetings, July 22 to August 12, 2002

  The Federal Reserve Board released the minutes of its discount rate meetings from July 22, 2002 to August 12, 2002. FRB Press Release 10/7/02

• OCC Issues Alert on Emergency Communications and National BankNet

  This issuance announces the expansion of the National BankNet's e-mail system, which links the OCC directly to national banks that are BankNet members. From now on, the OCC and other government agencies will rely on BankNet's e-mail system to communicate with banks during terrorism-related emergencies. Because the Internet may not be secure at such times, the alert encourages banks that are not members of BankNet to become members. Alert 2002-11 10/7/02

• New Post-Examination Survey for Safety and Soundness, and Compliance and Community Reinvestment Act Examinations

  On October 1, 2002, the FDIC implemented a new post-examination survey for all safety and soundness, and compliance and Community Reinvestment Act (CRA) examinations. Institutions will be invited to complete the survey after each examination. The new survey is part of the FDIC's continuing effort to improve the quality and efficiency of our examination process. FDIC:FIL-116-2002 10/7/02

• FDIC Issues FIL on Steps to Help Rebuild Areas Affected by Hurricane Lili

  The FDIC is encouraging banks to work constructively with borrowers who are experiencing difficulties due to conditions beyond their control. The guidelines suggest 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-117-2002 10/7/02

• FRB Issues Proposed Rule to Clarify the Treatment of Stock Futures under Reg T

  The proposed amendments would permit the withdrawal of cash from an otherwise restricted margin account if required to satisfy maintenance margin requirements. The proposed amendments also would explicitly permit stock futures to be carried in a good faith account as is currently done with other futures. 67FR62214 10/4/02

• FRB Issues Final Rule on Annual Adjustments for Reserve Calculations and Deposit Reporting

  The Federal Reserve Board announced the annual adjustments in the amount of net transaction accounts used in the calculation of reserve requirements and the cutoff level used to determine the detail and frequency of deposit reporting. FRB Press Release 10/4/02

• FDIC Looks to Research Used in Private Sector for Pricing and Managing Risk

  FYI 10/4/02

• FDIC Issues Alert on Counterfeit Official Checks

  The FDIC has learned that counterfeit official checks drawn on IndyMac Bank, FSB, 225 N. Barranca St., West Covina, California 91791, are in circulation. FDIC:FIL-115-2002 10/4/02

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

  The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 34), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-114-2002 10/4/02

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

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in August. One administrative hearing is scheduled for October. FDIC:PR-101-2002 10/3/02

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

  The OTS concluded that federal law preempts the application of California's minimum payment law to federal savings associations. The California law requires credit card issuers to provide certain cardholders with warnings and estimates of the length of time necessary to pay off their balances and the total cost of credit among other requirements. OTS 02-38 10/3/02

• FinCEN Expands E-Filing System Financial Institutions begin filing BSA reports over Secure Internet

  The Financial Crimes Enforcement Network (FinCEN) announced that it has officially launched the Patriot Act Communication System (PACS). PACS is designed to allow participating financial institutions to quickly and securely file Bank Secrecy Act (BSA) reports over the Internet. Phase one of the system will allow for the filing of the bank Suspicious Activity Report (Form TD F 90-22.47 or SAR) and the Currency Transaction Report (Form 4789 or CTR) FinCEN Press Release 10/2/02

• FRB Publishes Final Rule for Annual Adjustment of Fee-based Trigger for Additional Mortgage Loan Disclosures

  As earlier reported by the FRB, they have issued a final rule to make an adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act for mortgage loans that bear rates or fees above a certain amount. 67FR61769 10/2/02

• Cease and Desist Order against Broadstreet and AmTrade

  The Federal Reserve Board on Monday announced the issuance of a Cease and Desist Order against Broadstreet, Inc., Atlanta, Georgia, a bank holding company, and Broadstreet's subsidiary bank, the AmTrade International Bank of Georgia, Atlanta, Georgia. FRB Press Release, FDIC Information for AmTrade International Bank of Georgia, FDIC:PR-100-2002 10/01/02

• Debt Cancellation Contracts and Debt Suspension Agreements

  This bulletin announces the final rule on debt cancellation contracts and debt suspension agreements that was published in the Federal Register September 19. It becomes effective June 16, 2003. The rule establishes standards to ensure that national banks provide these products consistent with safe and sound banking practices and that the products are subject to appropriate consumer protections. OCC 2002-40 10/01/02

• FRB Publishes Final Rule for Annual Adjustment of Fee-based Trigger for Additional Mortgage Loan Disclosures

  The Federal Reserve Board published its annual adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act for mortgage loans that bear rates or fees above a certain amount. FRB Press Release 9/30/02

• Consumer Advisory Council to meet on October 24, 2002

  The Federal Reserve Board announced that the Consumer Advisory Council will hold its next meeting on Thursday, October 24. The meeting will take place in Dining Room E, Terrace level, in the Board's Martin Building. FRB Press Release 9/30/02

• FFIEC Publishes Country Exposure Lending Survey

  Country Exposure Statistical Release 9/30/02

• North Carolina State Treasurer to Host Conferences Featuring FDIC's Money Smart

  Women in North Carolina will have an opportunity to receive free instruction on personal finance and money management thanks to regional conferences hosted by the State Treasurer's office. The first conference will be held in Greenville on Saturday, September 28, at Faith Assembly of God Church. It begins at 8:30 a.m. and will be using the Money Smart curriculum developed by the Federal Deposit Insurance Corporation (FDIC). FDIC:PR-99-2002 9/27/02

• FTC Launches Internet Security Initiative

  Federal Trade Commissioner Orson Swindle launched the FTC's new Internet security initiative at the Privacy2002 Conference in Cleveland, Ohio. The Commissioner detailed a "culture of security," in which consumers, educators, and businesses combine forces to change the way society thinks about privacy and security. FTC Press Release 9/27/02

• Bank Robbery in Nebraska leaves 4 bank employees and 1 customer dead

  Three gunmen opened fire during an early morning bank robbery leaving 5 dead. Police are searching for the suspects, described as Hispanics wearing dark blue clothing. Additional news stories and reports can be found at: Four employees, one customer killed | Deadly Robbery | Five Killed in Neb. Bank Robbery | Five Killed in Bank Robbery in Nebraska (Reuters) 9/27/02

• Police Detain 3 Men Who May Be the Robbers

  Coverage from the Norfolk Daily News 9/26/02

• Federal Register Publishes Final Rule Regarding Information Sharing

  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. [This was earlier reported on BOL] 67FR60579 9/26/02

• FinCEN Issues Final Rule to Implement New Provisions of the BSA

  The final rule would prohibit certain financial institutions from providing correspondent accounts to foreign shell banks. [This was earlier reported on BOL] 67FR60562 9/26/02

• OTS Says State Housing Creditors Using the Parity Act Must Follow State Prepayment and Late Fee Rules

  The OTS announced that it is removing prepayment and late fee rules from the list of OTS regulations that apply to state housing creditors under the Alternative Mortgage Transaction Parity Act. OTS 02-37 9/26/02

• Holiday District Announcements

  The Federal Reserve Banks will be closed on Monday, October 14, for the Columbus Day holiday. FR Financial Services 9/26/02

• OCC Announces District Office Restructuring to Meet Challenges of the Future

  The OCC announced that it is realigning its District Office structure in response to continuing consolidation in the national bank system and to take advantage of advances in technology and changes in the way the OCC manages its nationwide network of examiners and field offices. OCC:NR 2002-77 9/26/02

• FRB Approval of proposal of Herky Hawk Financial Corporation

  The Federal Reserve Board announced its approval of the application by Herky Hawk Financial Corporation, Monticello, Iowa, to acquire all the voting shares of New Vienna Savings Bank, New Vienna, Iowa; Casey State Bank, Casey, Illinois; and to merge with Biggsville Financial Corporation, and thereby acquire all the voting shares of First State Bank of Biggsville, both in Biggsville, Illinois. FRB Press Release 9/26/02

• FOMC Leave Interest Rates Unchanged

  The Federal Open Market Committee decided today to keep its target for the federal funds rate unchanged at 1 3/4 percent. FRB Press Release 9/25/02

• Comptroller Hawke Addresses Independent Bankers Association of Texas

  OCC:NR 2002-76 9/25/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The Federal Deposit Insurance Corporation (FDIC) has learned that counterfeit cashier's checks drawn on four separate financial institutions are in circulation. FDIC: FIL-113-2002 9/24/02

• FDIC Announces First Advisory Committee on Banking Policy Meeting for November 13

  Stressing his desire for transparency in conducting the business of government, FDIC Chairman Don Powell today announced that the FDIC Advisory Committee on Banking Policy will hold its first meeting on November 13. The meeting, which is open to the public, will be held at the FDIC's Washington headquarters. FDIC:PR-98-2002 9/24/02

• Warning: New Twist to Nigerian Fraud Scheme

  The perpetrators of Advance Fee Fraud schemes are often very creative and innovative. This scheme is commonly known as "4-1-9" fraud, in reference to the section of the Nigerian penal code that addresses this type of activity. Nigerian nationals, purporting to be officials of their government or banking institutions, will fax or mail letters to individuals and businesses in the United States and other countries. Treasury Press Release 9/23/02

• OCC Updates Guide to Tribal Ownership of a National Bank

  The OCC released an updated A Guide to Tribal Ownership of a National Bank, an agency publication designed to help Native American tribes explore entry into the national banking system by establishing or acquiring control of a national bank. OCC:NR 2002- 74 ,       Tribal Guide 9/20/02

• Regulators Distribute Call Report for Third Quarter 2002

  Banks should complete your second 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 October 30, 2002. FDIC:FIL-112-2002 9/20/02

• FinCEN™s Guidance on Determining Whether Tribally Owned and Operated Casinos are Eligible for Exemption From CTR Requirements

  FinCEN receives numerous questions from depository institutions regarding the applicability of exemptions from filing Currency Transaction Reports (CTRs) for tribally owned and operated casinos in accordance with the Bank Secrecy Act. FinCEN Press Release 9/20/02

• Testimony of Dam Terrorist Financing: A Progress Report on Implementation of the USA PATRIOT Act

  Testimony 9/20/02

• Barry Kolatch Named Deputy Comptroller For Economic Research and Policy Development

  The OCC announced that Barry Kolatch has been appointed Deputy Comptroller for Economic Research
  and Policy Development. Mr. Kolatch, who will start in his new position on September 23, will be responsible for economic and policy analysis and research on the performance of national banks. OCC:NR 2002- 75 9/20/02

• Banking Industry Has Weathered The Downturn; Commercial Credit Quality Remains A Concern

  The banking industry has performed well in recent years despite increasing loan delinquencies, notably in commercial credits, according to a report released in the FDIC's Regional Outlook. FDIC Chairman Don Powell stated that "the extent of commercial loan deterioration has not reached the levels experienced in the early 1990s, however, this is a situation that we're continuing to watch closely." FDIC:PR-97-2002 9/20/02

• Survey of Real Estate Trends

  Semiannual summary of observations on developments in local commercial and residential real estate markets. Survey, FYI 9/20/02

• FTC and Citigroup Announce $215 Million Settlement

  On September 19, 2002, the FTC announced the settlement of charges involving abusive subprime lending practices brought against the Associates First Capital Corporation and Associates Corporation of North America (The Associates).
  
  
  The $215 Million settlement is the largest consumer protection settlement in the history of the FTC. The charges against The Associates involved engaging in systematic and widespread deceptive and abusive lending practices. The Associates were acquired by Citigroup in November 2000. The charges only related to the actions of The Associates prior to the acquisition. The allegations involved violations of the FTC Act through lending practices the induced consumers to refinance existing debts into high interest rate home loans and the purchase of high cost credit insurance.
  
  
  Over 2,000,000 consumers were impacted by the action of The Associates and will be receiving a portion of the settlement. In addition to the FTC settlement, a proposed class action lawsuit settlement will provide an additional $25 million to consumers whose mortgages loans were "flipped" by The Associates.
  
  
  The FTC indicated that consumers will, within the next few weeks, receive a notice in the mail regarding eligibility and participation in the distribution of the settlement funds. It is estimated that the average payout may be $1,000 per consumer.
  Citigroup Press Release - 9/19/02
  
  9/19/02

• Treasury Announces Final Rule Regarding Information Sharing Issued

  FinCEN has issued the final rule under Section 314 of the USA Patriot Act. We have summarized the thirty-nine pages for you and highlighted the important sections in "Sharing Information Under the Patriot Act". Treasury Press Release,    BOL Summary 9/19/02

• Federal Register Publishes Final Rule on Cancellation Contracts and Debt Suspension Agreements

  As earlier report, the OCC is adding a new part 37 to its regulations that addresses debt cancellation contracts (DCCs) and debt suspension agreements (DSAs). 67FR58962 9/19/02

• FDIC FIL about OFAC FAQ

  As earlier reported, on September 11, 2002, the Department of the Treasury's Office of Foreign Assets Control (OFAC) published on its Web site a series of frequently asked questions (FAQs) concerning OFAC regulations, policies and procedures, including questions from financial institutions. FDIC:FIL-111-2002 9/19/02

• 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. Electronic Interpretations and Actions 9/19/02

• Regional Outlook: 3rd Quarter 2002

  Banking industry has performed well in recent years, notably in commercial credits. Regional Outlook 9/19/02

• New SAR-MSB Form Available

  MSBs that are money transmitters or issuers, sellers or redeemers of money orders or traveler's checks are required to report suspicious activity by filing the SAR-MSB Form. Form suspicious activity by filing the SAR-MSB Form. Form 9/18/02

• OCC Rule on Debt Cancellation Contracts and Debt Suspension Agreements Provides New Consumer Protections and Safety and Soundness Standards

  The OCC has adopted a new regulation adding consumer protections and establishing safety and soundness standards for debt cancellation contracts (DCCs) and debt suspension agreements (DSAs). OCC: NR 2002- 73 9/18/02

• OCC Releases CRA Evaluations For 35 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of August 15 through September 14, 2002. OCC:NR 2002-72 9/18/02

• OCC Announces 10 New Enforcement Actions and 1 Termination

  The OCC announced 10 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 1 termination of an existing enforcement action. OCC:NR 2002- 71 9/18/02

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

  The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 33), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-109-2002 9/17/02

• FDIC Issues Alert on Counterfeit Official Bank Checks

  The FDIC has learned that counterfeit official bank checks drawn on First Hawaiian Bank, Honolulu, Hawaii, are in circulation. FDIC:FIL-108-2002 9/17/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-94 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-109-2002 9/17/02

• NCUA Introduces 5300 Call Report Short Form as Some Credit Unions Prepare for More Frequent Reporting

  The NCUA has finalized a new 5300 Call Report Short Form to be used by federally insured credit unions (FICUs) with $10 million or less in assets. The Short Form, with only seven pages, will be used by 54 percent of FICUs as they begin reporting on a quarterly basis at the end of the third quarter of 2002 which concludes September 30. Press Release 9/16/02

• FRB Issues Interim Rule on Reporting and Disclosure Requirements for State Member Banks With Securities

  The Board has modified its regulations implementing section 12(i) of the Securities Exchange Act of 1934 to reflect the amendments made to section 12(i) by the Sarbanes-Oxley Act of 2002. 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. 67FR57938 9/16/02

• Test Drive FedImageSM Services

  Find out how FedImage Services can drive your competitive advantage as you customize your total image management solution. FedImage 9/16/02

• OCC Publishes Working Paper on "A Cross-Country Analysis of the Bank Supervisory Framework and Bank Performance"

  This OCC Economics Department working paper discusses the policy issues raised by the structure, scope, and independence of bank supervisors. The paper compares how nations across the world address these issues and whether the way a nation addresses these issues affects the profitability of its banks. Paper 9/16/02

• Quarterly Banking Profile--2nd Quarter 2002

  This report card on industry status and performance includes written analyses, graphs, and statistical tables. Quarterly Banking Profile, FYI 9/13/02

• OCC Issues Correction to Assessment Fees

  This final rule makes a technical correction to the final rule that the OCC published on November 16, 2001. That provision sets forth the formula for the semiannual assessment the OCC charges each national bank. 67FR57509 9/12/02

• FDIC List of Minority Depository Institutions

  Minority Depository Institutions often play a unique role in promoting the economic viability of under-served communities. The FDIC has historically taken steps to preserve and encourage minority ownership of insured financial institutions. On April 9, 2002, the FDIC Board adopted a new Policy Statement Regarding Minority Depository Institutions. Minority Depository Institutions Program 9/12/02

• Progress in the Financial War on Terrorism

  This issue of FYI summarizes the progress that has been made over the past 12 months in the financial war on terrorism. The FDIC is proud to work closely with the Office of Homeland Security (OHS), the Department of the Treasury, and our fellow state and federal financial regulators to stem the flow of terrorist funds, provide technical assistance to foreign governments, and safeguard the nation's critical banking and finance infrastructure. FYI 9/12/02

• OFAC Publishes FAQ

  OFAC has published on its website the first installment of answers to questions of general applicability frequently asked by the public. As part of its commitment to regulatory transparency and customer service, the Office is continuing to prepare answers to additional questions that are often asked; additional questions and answers will be posted periodically. FAQ 9/11/02

• Pricing The Risks of Deposit Insurance

  Papers for a closed September 13 conference cosponsored with the Journal of Financial Services Research. Conference Information 9/11/02

• FATF calls on all countries to join combat against terrorist financing

  One year after the events of 11th September 2001 in the United States, the Financial Action Task Force (FATF) reaffirms its commitment to be a leader in the international fight against the financing of terrorism. Building on its efforts in the past year, the FATF will continue to take aggressive steps to prevent, detect and ultimately dry up the flow of funds to terrorists. Countering the financing of terrorism is a top priority for the FATF said the new FATF President Jochen Sanio and we are calling upon all countries around the world to join us in this effort. FATF Press Release 9/11/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-107-2002 to notify banks of a recent OFAC change where OFAC has amended its Specially Designated Nationals and Blocked Persons. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-107-2002 9/11/02

• FDIC-hosted symposium on a new standard for organizations sharing financial data.

  On September 23, an FDIC-sponsored symposium will explore the many ways that Extensible Business Reporting Language (XBRL) can help the financial services industry exchange data. XBRL is a freely licensed standard that uses common terms and definitions. Symposium 9/9/02

• FDIC Publishes Issue of FYI

  Corporate Earnings Growth Suggests Business Sector Recovery 9/9/02

• FinCEN Issues Enforcement Action

  Great Eastern Bank of Florida, Miami, Florida 9/9/02

• FDIC Seeks Comment on Proposed Rule Regarding Insurance for State Banks That Are Chartered as Limited Liability Companies

  As previosuly reported in the Federal Register, the FDIC is requesting public comment on the attached proposed rule clarifying that a state bank that is chartered as a limited liability company (LLC) could be considered eligible for federal deposit insurance. Comments on this proposed rule are due by October 21, 2002. FDIC:FIL-106-2002 9/9/02

• FDIC Issues September 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 June 2002. FDIC:PR-96-2002 Monthly List of Banks Examined for CRA Compliance
  9/6/02

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

  FFIEC Press Release 9/6/02

• OCC Issues Guidance on Investment Portfolio Credit Risks

  The guidance alerts banks to the potentially significant credits risks they incur when safekeeping investment portfolio assets with third parties, such as brokers, broker/dealer firms and banks. OCC 2002-39 9/6/02

• FDIC Issues Alert on Stolen U.S. Savings Bonds

  The East Windsor Township Police Department, Mercer County, New Jersey, has asked the FDIC to alert all U.S. banks to the theft of $100,000 in U.S. Savings Bonds during a residential burglary in East Windsor Township. It is believed the suspects will attempt to redeem the bonds outside the geographical area where the burglary occurred. FDIC:FIL-105-2002 9/6/02

• OCC Reports Derivatives Volume Tops $50 Trillion

  Derivatives held by U. S. commercial banks increased $3.8 trillion in the second quarter 2002, to $50.1 trillion, the second highest amount ever recorded, the Office of the Comptroller of the Currency reported today in its quarterly Bank Derivatives Report. OCC:NR 2002- 70 Bank Derivatives Report 9/6/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-104-2002 to notify banks of a recent OFAC change where OFAC has amended its Specially Designated Nationals and Blocked Persons. [The OFAC change itself was previously covered on BOL.] FDIC: FIL-104-2002 9/6/02

• FFIEC Publishes Call Report Validation Criteria

  Updated the Current Validation Criteria: Excel | PDF for the September 2002 Call Reports. 9/5/02

• Federal Register Publishes Comment Deadline on Draft White Paper on Sound Practices

  The paper discusses the views of the agencies on sound practices based on discussions with industry representatives on how the events surrounding September 11, 2001, have altered business recovery and resumption expectations for purposes of ensuring the resilience of the U.S. financial system and seeks comments on those views. 67FR56835 (text) 9/5/02

• Accounting Services via FedLine for the Web Demo

  The Accounting Services Demo illustrates the steps a Depository Institution would take to view accounting information services. This service provides real-time access to intra-day account balance; daylight overdraft balance and available funds balance information, as well as information found on your statement of account. Federal Reserve Financial Services 9/4/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-103-2002 to notify banks of a recent OFAC change where OFAC removed names from its Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-103-2002 9/4/02

• FDIC Issues Special Alert on Counterfeit Cashier's Checks and Altered Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks and altered cashier's checks drawn on Mid City Bank, Inc., Omaha, Nebraska, are in circulation. FDIC:FIL-101-2002 9/4/02

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

  The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 32), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-100-2002 9/4/02

• OCC Issues Fourth Quarter 2002 CRA Examination Schedule

  The OCC released its schedule of Community Reinvestment Act (CRA) examinations to be conducted in the fourth quarter of 2002. OCC:NR 2002- 69, Schedule 9/4/02

• OTS Announces 117 CRA Exams Scheduled for 4th Quarter 2002

  The OTS announced that 117 savings associations are scheduled for Community Reinvestment Act (CRA) examinations during the fourth quarter of 2002. OTS 02-36 Schedule 9/4/02

• Fed Information Services via FedLine for the Web

  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. Press Release 9/4/02

• FRB Financial Services Publishes New Accounting Documents

  Operating Circular #1 Account Relationships (PDF) | Agreements and Forms (PDF) 9/4/02

• FinCEN Announces Survey on Costs of Filing Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SARs) and the Use of the Exemption Process

  On August 23, 2002, FinCEN launched a survey of a statistically valid sample of banks, savings and loans and credit unions to gather information on the costs of filing CTRs and SARs, as well as the use of the exemption process for CTR filings. Sampled institutions were notified via email and faxes that highlighted the importance of the survey and their responses to it in helping to improve the effectiveness of Bank Secrecy Act reporting requirements to the benefit of financial institutions, as well as the federal government™s anti-money laundering efforts. FinCEN Press Release 9/3/02

• FDIC Issues Fourth Quarter 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 fourth quarter of 2002. 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-93-2002 FDIC Issues Fourth Quarter CRA Examination Schedule, FDIC Regional Offices 9/3/02

• Regulators Issue Draft White Paper on Sound Practices To Strengthen the Resilience of the U.S. Financial System

  The sound practices identified reflect the preliminary conclusions of the FRB, OCC, SEC, and the New York State Banking Department regarding the factors necessary to strengthen the resilience of critical U.S. financial markets in the face of a wide-scale, regional disaster. FRB Press Release, OCC:NR 2002-68, SEC:2002-130 Draft White Paper

• FDIC'S Money Smart Financial Education Program to Aid Victims of Predatory Lending In East Palo Alto and Menlo Park

  Victims of abusive predatory lending practices in East Palo Alto and Menlo Park may qualify for mortgage payment relief, thanks to an innovative $5 million anti-predatory lending initiative in which the FDIC Money Smart curriculum serves as the financial education component. FDIC:PR-94-2002 9/3/02/li>

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

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in July. No administrative hearings are scheduled for September. FDIC:PR-95-2002 9/3/02

• September 2002 Call Reports

  Posted the Current Validation Criteria: Excel | PDF for the September 2002 Call Reports 9/3/02

• OCC Issues Revised Advisory 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. Advisory Letter AL 2000-4,
dated May 9, 2000, is rescinded. OCC:AL 2002-6 8/30/02



• OCC Issues Examiner Handbook on Personal Fiduciary Services



The handbook addresses a broad range of fiduciary services that banks provide to individuals, their families and their businesses. Banks provide these services as a trustee, investment adviser or in any capacities where the bank possesses investment discretion on behalf of another. Personal Fiduciary Services OCC:NR 2002- 67 8/30/02



• Banking Industry Reports Record Earnings



Commercial banks had record earnings of $23.4 billion in the second quarter, surpassing the previous record set three months earlier by 7.8 percent, the Federal Deposit Insurance Corporation reported today. A basic yardstick of earnings performance-return on assets (ROA)-rose to 1.41 percent, the second highest level recorded. For the first time in two years, average net interest margins-the difference between the average yield on loans and other investments and the average cost of deposits and other liabilities-at smaller banks increased. Despite problems with commercial and industrial (C&I) loans, banks have seen continued strength in consumer lending. FDIC:PR-92-2002 , Preliminary Bank Earnings Report -- Second Quarter 2002, FYI 8/30/02



• FDIC Consumer News

  How to protect against a high-cost “predatory” home loan, plus tips on other topics. FDIC Consumer News 8/28/02
  
  

• FDIC Publishes Contact List



Telephone, mail contacts in the FDIC; links to other governmental financial agencies.
Contact Page 8/28/02



• FDIC and the Association of Military Banks of America Join Forces for Worldwide Promotion of Money Smart Curriculum



The FDIC announced that the Association of Military Banks of America (AMBA) has joined its Money Smart Alliance Program. The announcement was made by Donna Gambrell, Deputy Director of the FDIC's Division of Supervision and Consumer Protection (DSC), and by Henry W. Neill, Jr., Executive Vice President of AMBA, at a signing ceremony held at the FDIC's headquarters in Washington, D.C.
FDIC-PR-91-2002 8/28/02



• FDIC Issues Alert on Counterfeit Cashier's Checks



The FDIC has learned that counterfeit cashier's checks drawn on O'Bannon Bank, Buffalo, Missouri, are in circulation. The counterfeit items bear the routing number 081505702 and the account number 780001. FDIC:FIL-99-2002 8/28/02



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



The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 31), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-98-2002 8/28/02



• FDIC Issues Alert on Internet Investment Scheme



The Canada Deposit Insurance Corporation (CDIC) has issued a news release advising North American investors and depositors of an apparent Internet fraud scheme falsely involving CDIC. FDIC:FIL-97-2002 8/28/02



• FDIC Issues Alert on Possible Attempted Fraud By Convicted Fugitive



The U.S. Marshals Service has again asked the FDIC to alert all U.S. banks about the activities of fugitive John Ruffo, who was convicted in 1998 for his role in defrauding several banks of over $350 million and may now be attempting other fraud schemes. He has used his real name, John Ruffo, in various schemes, but he may also attempt to use an alias. He is believed to have access to large sums of money and may have U. S. bank accounts. FDIC:FIL-96-2002 8/28/02



• FDIC Issues Alert on Unauthorized Sale of Samoan Banking Licenses



The OCC has advised that the Office of the Registrar of International and Foreign Companies, Samoa, has issued a press release announcing that Witherspoon, Seymour & Robinson Incorporated (WSR II C.) is promoting "pre-approved banking licenses" purportedly issued by Samoa. This entity is not a licensed trustee company in Samoa, and only such companies are permitted to submit license applications. FDIC:FIL-95-2002 8/28/02



• FDIC FIL about OFAC Change



The FDIC has published FIL-94 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-94-2002 8/28/02



• FDIC Issues Alert on Fictitious Official Checks and Certified Checks



The FDIC has learned that fictitious official checks and certified checks are being widely circulated. The checks bear the name Americrest Bank & Trust. Some show the address as Post Office Box 23202, Van Nuys, CA, while others show the address as P. O. Box 2012, Van Nuys, CA 91411. All show the telephone number 818-779-7778. There is no bank in California named Americrest Bank & Trust.
FDIC:FIL-93-2002 8/28/02



• Thrift Industry Turns in Another Strong Quarter



The OTS reported earnings for the nation’s thrift industry of $2.86 billion in the second quarter of 2002, up 14 percent over the year-ago second quarter. The results were down six percent from the record high in the first quarter of 2002. OTS 02-35 8/27/02



• OECD Issues Guidelines for the Security of Information Systems and Networks: Towards a Culture of Security
  



The Organization for Economic Cooperation and Development formally has released its Guidelines for the Security of Information Systems and Networks. The Guidelines consist of nine principles that aim to increase public awareness, education, information sharing, and training that can lead to a better understanding of online security and the adoption of best practices. "A Culture of Security" represents a new way of thinking -- one in which everyone using computers and networks like the Internet has a role to play. Press Release 8/26/02



• FRB releases Discount Rate Meetings Minutes



The Federal Reserve Board released the minutes of its discount rate meetings from May 20 to June 24, 2002. FRB Press Release 8/26/02



• FDIC Issues FIL on Proposed Rule on Customer Identification Program



As earlier reported, the regulators issued jointly proposed a rule that would add a new section to the Bank Secrecy Act regulations. The proposed Section 103.121, Customer Identification Programs for Banks, Savings Associations, and Credit Unions, requires that financial institutions implement a written, risk-based customer identification program, maintain information used to verify identities and compare the names of new customers against government lists of known or suspected terrorists or terrorist organizations. The proposed rule will apply to customers seeking to open new accounts. FDIC:FIL-92-2002 8/23/02



• FinCEN Issues SAR Activity Review



This issue of The Review contains information related to potential terrorist financing activity as well as an analysis of SAR filings since September 11, 2001 that referred to terrorism. FinCEN News Release, SAR Activity Review 8/23/02



• OFAC Makes Comment Letters Public



OFAC has published on its Web site copies of comment letters and emails it received in response to its proposal to make civil penalty actions public. The actual regulation on making civil penalty actions public has still not been finalized by OFAC. OFAC 8/22/02



• OCC Issues Bulletin on Enforcement Action Policy



This bulletin makes public Policies & Procedures Manual, dated July 30, 2001, which describes the OCC's policy for taking appropriate enforcement action in response to violations of law, rules, regulations, final agency orders and/or unsafe and
unsound practices or conditions (Enforcement Action Policy). OCC 2002-38 8/22/02



• FFIEC Adds September Forms



The FFIEC added the September 2002 Instructions for Preparation of the FFIEC 031 and 041 Reporting Forms. 8/22/02



• 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. Electronic Interpretations and Actions 8/22/02



• FRB Issues Statement on Payments System Risk Policy



The FRB announced that it will not, over the near term, incorporate two policy options into its longer-term Payments System Risk (PSR) policy plan. The FRB will, however, continue to analyze the benefits and potential drawbacks of a two-tiered pricing regime for daylight overdrafts. FRB Press Release 8/21/02



• OCC Issues Alert on Internet Banking Fraud Scam



The Canada Deposit Insurance Corporation (CDIC) has advised North American investors and depositors of an apparent Internet fraud scam falsely involving CDIC. A person or group of persons carrying on business as the Maryland Investments Club is offering investment certificates called "digital investment certificates" for sale over the Internet. OCC:ALERT 2002-10 8/21/02



• OCC Releases CRA Evaluations For 26 National Banks



The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of July 15 through August 14, 2002. OCC:NR 2002-66 Evaluations 8/21/02



• FRB Publishes List of Foreign Margin Stocks



The List of Foreign Margin Stocks 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. 67FR53875 (text) 67FR53875 (pdf) 8/20/02



• OCC Announces 10 New Enforcement Actions and 3 Terminations



The OCC announced 10 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 3 terminations of an existing enforcement action. OCC:NR 2002-65 8/20/02



• FDIC Issues Alert on Counterfeit Official Checks and Money Orders



The FDIC has learned that counterfeit official checks drawn on United California Bank, Los Angeles, California, and counterfeit bank money orders drawn on Warren Five Cents Savings Bank (Warren Bank), Peabody, Massachusetts, are in circulation. FDIC:FIL-91-2002 8/19/02



• FDIC Issues Alert on Missing Money Orders



The FDIC has been informed by Peoples State Bank, Many, Louisiana, that 1,200 of the bank's money orders have been stolen while in transit from the printer to the bank. FDIC:FIL-90-2002
8/19/02



• Governor Gramlich to begin treatment for leukemia



Federal Reserve Board member Edward M. Gramlich will begin treatment Monday for chronic lymphocytic leukemia (CLL) – a form of leukemia that can be treated successfully. Governor Gramlich will be treated with chemotherapy on an out-patient basis at Georgetown University Medical Center. FRB Press Release 8/19/02



• OCC Publishes Final Rule of Section 312 of the USA PATRIOT Act



As earlier reported in the Federal Register, the interim final rule provides guidance to banks on how to implement section 312, which became effective July 23. OCC 2002-37 8/19/02



• Ten Largest Thrift Companies



The Ten Largest Thrift Companies highlights the performance of the largest thrift companies in the most recently completed quarter. The report is based on earning announcements and other publicly available information and generally is published within 45 days of the completion of a calendar quarter. Ten Largest Thrift Companies, FYI 8/16/02



• OCC Issues Bulletin on Previously Announced Changes to HMDA



The bulletin announces revisions to reporting requirements in Regulation C. Most of the changes become effective January 1, 2004, for data required to be reported by March 1, 2005. However, two changes become effective January 1, 2003, for data required to be reported by March 1, 2004. OCC 2002-36 8/16/02



• Holiday District Announcement



The Federal Reserve Banks will be closed on Monday, September 2, for the Labor Day holiday. Please refer to the instructions listed for information on your local office. Announcement 8/16/02



• Revisions to Federal Reserve Study Suggest Check Use Peaked in the Mid-1990s



An analysis published in the August edition of the Federal Reserve Bulletin compared the
revised annual check volume in 2000, 42.5 billion, to estimates from two earlier Federal Reserve
studies that 49.5 billion checks were paid in 1995 and 32.8 billion in 1979. The analysis
suggested that check use may have peaked during the mid-1990s, though the exact year of the
peak is unknown. Press Release
8/15/02



• Fed Keeps Fed Funds Unchanged



The FOMC decided to keep its target for the federal funds rate unchanged at 1 3/4 percent. FRB Press Release
8/13/02



• FDIC Publishes Historical Statistics on Banking



The Historical Statistics on Banking (HSOB) provides annual statistical information on the banking industry beginning in 1934. These data can be used to identify and analyze long-term trends and to develop benchmarks to evaluate the current condition of the banking and thrift industries. HSOB 8/13/02



• OCC Publishes Final Rule on Capital Equivalency Deposits



As earlier reported in the Federal Register, the OCC is revising certain requirements regarding CED deposit arrangements to increase flexibility for, and reduce burden on, certain Federal branches and agencies. OCC 2002-35 67FR41619 8/13/02



• FDIC Issues Alert on Counterfeit Official Bank Checks



The FDIC has learned that counterfeit cashier's checks drawn on four separate financial institutions are in circulation. The items appear to be widely circulated. FDIC:FIL-89-2002 8/13/02



• FDIC Distributes FinCEN Advisory



In a continuing effort to assist banks in Bank Secrecy Act compliance, anti-money laundering efforts, and prevention and detection of other financial crimes, the Federal Deposit Insurance Corporation (FDIC) forwards to FDIC-supervised banks each issue of FinCEN Advisory. FDIC: FIL-88-2002 8/13/02



• FDIC Issues Alert for Entities That May Be Conducting Banking Operations Without Authorization



The Central Bank of Belize has issued a warning about entities that are not licensed to provide banking and/or financial business in Belize. Any proposed transactions involving Trinity Savings Bank and Goldman & Stein should be viewed with extreme caution. FDIC:FIL-87-2002 8/13/02



• FDIC Issues Alert on Counterfeit Cashier's Checks



The FDIC has learned that counterfeit cashier's checks drawn on Founders Bank, Chesterfield, Missouri, are in circulation.
FDIC:FIL-86-2002 8/13/02



• OCC Issues Alert on Unauthorized Sale of Samoan Banking Licenses



This issuance informs banks and financial regulators that Witherspoon, Seymour, and Robinson, Incorporated is promoting "pre-approved banking licenses" purportedly issued by the territory of Samoa. This company is not a licensed trustee company in Samoa. OCC:ALERT 2002-9 8/12/02



• Group on OFAC List Loses Challenge
  

  The Holy Land Foundation has lost its lawsuit challenging an Executive Order which designated it a terrorist organization subject to OFAC sanctions. In a ruling issued 8/8, U.S. District Judge Kessler held that orders blocking assets "are an important component of U.S. foreign policy, and the president's choice of this tool to combat terrorism is entitled to particular deference." Kessler turned down the injunction sought by the foundation, and rejected arguments that the blocking order violates due process, free speech rights, and the foundation's religious freedom. US Courts
  8/9/02
  
  

• Regulators Extend Comment Period On Draft Credit Card Guidance
  

  The federal financial institution regulatory agencies announced Thursday
  that they are extending the deadline, to September 23, for comment on
  their draft guidance on account management and loss allowances for credit
  card lending. OCC NR 2002-64,
  OTS 02-34 , FDIC PR-90-2002, FFIEC Press Release , FFIEC Press Release
  8/9/02
  
  

• False Privacy Claims Lead to Settlement
  

  When a company makes claims about the steps it takes to protect the privacy of customer data, they'd better be true. Microsoft learned that lesson the hard way and, as a result, has settled charges with the FTC regarding the privacy and security of personal information collected from consumers through Microsoft's "Passport" web services. FTC Announcement 8/9/02
  
  

• OTS Changes Mutual-to-Stock Conversion Rules
  
  The Office of Thrift Supervision is publishing a final rule implementing changes to its mutual-to-stock conversion and mutual holding company regulations. OTS Announcement
  
  Conversion Application 8/9/02
  
  
• FDIC's FYI Report on 25 Largest Banking Companies
  

  According to the FDIC, second quarter Net Income dipped slightly and asset quality worsened for the 25 largest banking companies. FDIC FYI ,
  Quarterly Study of the 25 Largest
  8/9/02
  
  

• SEC Proposes Regulation Analyst Certification



The proposed regulation would require
that any research report disseminated by broker or dealer include
certifications by the research analyst that the views expressed in the
research report accurately reflect the analyst's personal views, and
whether the analyst received compensation or other payments in
connection with his or her specific recommendations or views.
67FR51510 8/7/02



• FDIC Issues Special Alert Regarding Fictitious Cashier's Checks In Circulation
  



The Federal Deposit Insurance Corporation (FDIC) has learned that fictitious cashier's checks are in circulation. The checks bear the name Audi Bank N. A., 19 East 54th Street, New York, New York 10022. Audi Bank N. A. does not exist. However, Bank Audi (USA), a legitimate bank, is located at that address. The routing number used on the checks, 021200957, is assigned to the Commerce Bank/North, Ramsey, New Jersey. The account number, 03771407, does not appear to be a valid number.
FDIC: FIL-85-2002 8/7/02



• FDIC Reports Second Quarter Results for Bank and Thrift Insurance Funds
  



The Federal Deposit Insurance Corporation (FDIC) reported that the Bank Insurance Fund's (BIF) reserve ratio fell 1.26 percent from December 31, 2001 to March 31, 2002. The Savings Association Insurance Fund (SAIF) increased to $388 million compared to $33 million for the same period last year. The increase in comprehensive income was due to the fluctuation in the loss reserves for anticipated failures of insured institutions during the first half of 2002 compared to last year. Seven BIF-insured banks failed during the first six months of 2002 with total assets at failure of $2.4 billion. One SAIF-insured thrift failed during the same period with total assets at failure of $50 million.
FDIC Press Release 8/7/02



• SEC Issues Supplemental Information on Accelerated Deadline for Insider Transaction Reports
  



The SEC has issued supplemental information about the provision of the Sarbanes-Oxley Act that amends Section 16(a) of the Securities Exchange Act of 1934 to accelerate the due date for officers,' directors' and principal security holders' reports of transactions. The amendment becomes effective Aug. 29, 2002.
SEC Press Release 8/6/02



• FBIIC Issues Interim Policy on GETS Card Program
  



The Financial and Banking Information Infrastructure Committee (FBIIC) issued the an interim policy on the sponsorship of private sector entities in the Government Emergency Telecommunications Service (GETS) Card Program. The interim policy states the circumstances under which qualifying private sector financial institutions may request federal sponsorship in the program.
FDIC: FIL-84-2002 8/6/02



• OCC Appoints New Deputy Comptroller for Risk Evaluation
  



The Office of the Comptroller of the Currency has appointed
Kathryn E. Dick as the new Deputy Comptroller for Risk Evaluation.
Ms. Dick will serve as the Comptroller's principal advisor on systemic risks facing
the national banking system and will chair the OCC's National Risk Committee, which
coordinates the agency's risk identification practices.
NR 2002-63 8/6/02



• FDIC Issues August 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 May 2002. FDIC Press Release 8/5/02



• Settlement Agent Inquiry Feature via FedLine for the Web
  



Settlement agents for Federal Reserve banks can now gain access to the National Settlement Service via the Web. Agents will be able to directly monitor their own settlement activity as well as view settlement arrangement profiles for the arrangements for with they act as agent. There will be no change to the process for submitting settlement files. FRB Financial Services Announcement 8/5/02



• Company that Pitched "Advance-fee" Loans Will Pay $3 Million in Redress as Part of Federal/state Settlement
  



American Savings Discount Club (ASDC) and two individual defendants will establish a redress fund of nearly $3 million, will be subject to a lifetime ban on credit-related telemarketing, and will face a lifetime telemarketing bond of $500,000. FTC Press Release 8/2/02



• FFIEC Announces the Availability of Data on Mortgage Lending



The FFIEC announced the availability of data for the year 2001 regarding mortgage lending transactions at 7,631 financial institutions covered by the Home Mortgage Disclosure Act (HMDA) in metropolitan areas throughout the nation. FFIEC Press Release 8/2/02



• FFIEC Announces the Availability of Data on Small Business



The 2001 CRA data reflect originations and purchases of small business, small farm, and community development loans from 1,912 institutions, including 1,443 commercial banks and 469 savings associations. FFIEC Press Release 8/2/02



• FDIC Issues Special Alert/Counterfeit Official Bank Checks



The FDIC has learned that counterfeit cashier's checks drawn on three separate financial institutions are in circulation. The items appear to be circulating nationwide. FDIC:FIL-83-2002 8/2/02



• Approval of proposal of Bank of Orange County



The Federal Reserve Board announced its approval of the applications by Bank of Orange County, Fountain Valley, California, to merge with Cerritos Valley Bank, Artesia, California, and establish branches at the former locations of Cerritos. FRB Press Release 8/1/02



• FDIC Publishes Notice of Agency Meeting



The meeting will be held in the Board Room on the sixth floor of the FDIC Building located at 550 - 17th Street, N.W., Washington, D. C. on August 6, 2002. Notice 8/1/02



• TO ACCESS PRIOR TOP STORIES
  
  To access previous Top Stories (such as the ones from July, for example), use the Top Stories Archive drop-down menu above, or the drop-down menu at the bottom of this page to select the month you wish to review.

Comptroller Curry presented a statement and written testimony and Chairman Gruenberg provided a statement before the U.S. Senate Committee on Banking, Housing and Urban Affairs. Messrs Curry and Gruenberg discussed what their respective agencies are doing to improve the security of consumer financial information held by the institutions they supervise, to implement provisions of the Dodd-Frank Act.

The February 2014 issue of FedFocus has been posted by Federal Reserve Bank Services. This edition features public comments on U.S. payment system improvements. Other articles discuss the next generation VPN Solution, cross-border payments, updated FedComplete packages, and FEDucation.

The Foreign Sanctions Evaders List (FSE List) has been introduced by OFAC to identify foreign persons sanctioned under Executive Order (E.O.) 13608, "Prohibiting Certain Transactions With and Suspending Entry Into the United States of Foreign Sanctions Evaders With Respect to Iran and Syria." The persons sanctioned will be identified with the program tags [FSE-IR] and [FSE-SY]. The FSE List will be available in almost all of the same file formats as the SDN List. The initial FSE List contains four individuals and nine entities. Information regarding the designations has been posted in a BOL OFAC Update.

The Government Accountability Office (GAO) has issued a report suggesting that more efforts are needed in fair housing controls and toward improved access for non-English speakers in a key government housing program. The Home Affordable Modification Program (HAMP) offshoot, MHA Outreach and Borrower Intake Project, includes a Treasury Department requirement that servicers monitor compliance with fair lending laws, but no assessment has yet been made of the extent to which servicers are meeting that requirement. Also, notwithstanding a 2000 Executive Order and a 2011 Attorney General's memorandum, says the report, Treasury has only recently developed guidelines and procedures for MHA programs relating to improving access for limited English proficiency persons.

Treasury has announced actions targeting a diverse set of 9 entities and 12 individuals located around the world for evading U.S. sanctions
against Iran, aiding Iranian nuclear and missile proliferation, and supporting terrorism. The entities and individuals are located in Turkey, Spain, Germany, Georgia, Afghanistan, Iran, the United Arab Emirates, and Liechtenstein. Information regarding the designations has been posted in a BOL OFAC Update.

Comptroller Curry presented a statement and written testimony and Chairman Gruenberg provided a statement before the U.S. Senate Committee on Banking, Housing and Urban Affairs. Messrs Curry and Gruenberg discussed what their respective agencies are doing to improve the security of consumer financial information held by the institutions they supervise, to implement provisions of the Dodd-Frank Act.

The February 2014 issue of FedFocus has been posted by Federal Reserve Bank Services. This edition features public comments on U.S. payment system improvements. Other articles discuss the next generation VPN Solution, cross-border payments, updated FedComplete packages, and FEDucation.

The Foreign Sanctions Evaders List (FSE List) has been introduced by OFAC to identify foreign persons sanctioned under Executive Order (E.O.) 13608, "Prohibiting Certain Transactions With and Suspending Entry Into the United States of Foreign Sanctions Evaders With Respect to Iran and Syria." The persons sanctioned will be identified with the program tags [FSE-IR] and [FSE-SY]. The FSE List will be available in almost all of the same file formats as the SDN List. The initial FSE List contains four individuals and nine entities. Information regarding the designations has been posted in a BOL OFAC Update.

The Government Accountability Office (GAO) has issued a report suggesting that more efforts are needed in fair housing controls and toward improved access for non-English speakers in a key government housing program. The Home Affordable Modification Program (HAMP) offshoot, MHA Outreach and Borrower Intake Project, includes a Treasury Department requirement that servicers monitor compliance with fair lending laws, but no assessment has yet been made of the extent to which servicers are meeting that requirement. Also, notwithstanding a 2000 Executive Order and a 2011 Attorney General's memorandum, says the report, Treasury has only recently developed guidelines and procedures for MHA programs relating to improving access for limited English proficiency persons.

Treasury has announced actions targeting a diverse set of 9 entities and 12 individuals located around the world for evading U.S. sanctions
against Iran, aiding Iranian nuclear and missile proliferation, and supporting terrorism. The entities and individuals are located in Turkey, Spain, Germany, Georgia, Afghanistan, Iran, the United Arab Emirates, and Liechtenstein. Information regarding the designations has been posted in a BOL OFAC Update.

• Treasury Withdraws and Reproposes Bank Deposit Interest Regulations

  The Treasury Department withdrew January 2001 proposed regulations that would have required reporting to the IRS for bank deposit interest paid to all nonresident alien individuals and issued new proposed regulations that will require reporting on a more limited basis. Treasury PO-3301 Bank Deposit Interest Regulations 7/31/02

• OFAC Publishes Interpretative Ruling

  The Office of Foreign Assets Control has published an interpretative ruling on computerized reservation systems (Cuba travel). Interpretative Ruling 7/31/02

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

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in June. No administrative hearings are scheduled for August. FDIC:PR-87-2002 7/31/02

• FDIC Issues Amended Statement of Policy on Bank Merger Act Transactions

  The FDIC has amended its Statement of Policy on Bank Merger Transactions to incorporate a statutory change made by the USA PATRIOT Act. FDIC:FIL-82-2002, Notice 7/31/02

• Hispanic Banking Forum Encourages Banks to Reach Growing Hispanic Population in Chicago Region

  The OCC, FRB of Chicago and the FDIC will co-sponsor a Hispanic Banking Forum in Chicago, Illinois on July 31. OCC:NR 2002-62 7/31/02

• OCC Publishes Bulletin on Customer ID Proposal

  As earlier reported in the Federal Register, this bulletin transmits a notice of proposed rule making jointly published by the U.S. Treasury Department, through the Financial Crimes Enforcement Network (FinCEN), the federal banking agencies, and the National Credit Union Administration on July 23. OCC 2002-34 7/31/02

• Appeals Court Upholds Financial Privacy Regulations

  Trans Union May Not Sell Consumers' Personally Identifiable Financial Information without their Consent. The United States Court of Appeals for the District of Columbia Circuit has affirmed a lower court decision upholding regulations enacted by the Federal Trade Commission and six other federal agencies to implement the privacy provisions of the Gramm-Leach-Bliley Act (GLBA). FTC Press Release 7/30/02

• Written Agreement with Community First Bank and Trust

  The Federal Reserve Board announced the execution of a Written Agreement by and among the Community First Bank and Trust, Celina, Ohio, the Federal Reserve Bank of Cleveland, and the Ohio Division of Financial Institutions. FRB Press Release 7/30/02

• HUD Issues Proposed Rule to RESPA

  HUD is issuing a proposed rule under RESPA, to simplify and improve the process of obtaining home mortgages and reduce settlement costs for consumers. 67FR49133 7/29/02

• OCC is Revising the Expedited Review Procedures for National Banks to Effect Reverse Stock Splits

  This advisory letter updates existing guidance to reflect the repeal of 12 USC 51 on minimal capital requirements. OCC:AL 2002-6 7/29/02

• Regulators Issue Proposed Collection of Data on Subprime Consumer Lending Programs

  As earlier reported in the fderal register, the FDIC, FRB, and the OCC are requesting comment on the addition of a proposed new schedule to the Reports of Condition and Income (Call Report) that would collect data on consumer loans in subprime lending programs. FDIC:FIL-81-2002, FFIEC 7/29/02

• 2002 National Money Laundering Strategy Roll Out

  The release of the 2002 National Money Laundering Strategy into a world that changed dramatically as a result of the villainous terrorist attacks on September 11, 2001. The Strategy directs the government's resources against money launderers and those who finance terrorist activities and individuals. It is a good plan and a critical mission. Press Release 2002 Money Laundering Strategy 7/26/02

• Treasury Requests Comments on Suspicious Activity Report Money Services Businesses

  It is anticipated that the form will be final and available for use on October 1, 2002. Until that time, Money Services Businesses are to continue to use the Bank SAR form, Form TD F 90–22.47. 67FR48704 7/26/02

• Approval of application of Nordea Bank Finland

  The Federal Reserve Board announced the approval of the application of Nordea Bank Finland Plc, Helsinki, Finland, to establish a branch in New York, New York and acquire ownership of a commercial lending company, American Scandinavian Banking Corp., New York, New York. FRB Press Release 7/26/02

• DIT Test Schedule

  Federal Reserves Financial Services publishes the DIT Test Schedule 7/26/02

• FDIC Merger Decisions: Annual Report to Congress

  Approval of bank absorptions when the resulting bank is a state nonmember bank. Report 7/26/02

• The Rise of Risk Management: Basel and Beyond

  FDIC hosts a symposium on risk management and the new Basel Capital Accord. Symposium Description 7/26/02

• FDIC Issues Rule on Corporate Debt Collection

  The regulation sets forth the procedures the FDIC will follow in collecting debts owed to the United States. These procedures include collection of debts through administrative offset, salary offset, administrative wage garnishment and tax refund offset. 67FR48525 (text) 7/25/02

• Enhancing Financial Transparency

  In response to the recent wave of corporate accounting controversies that has shaken investor confidence in U.S. financial markets, the FDIC gathered prominent policymakers, academic experts, and business and accounting professionals on June 4, 2002 to participate in a daylong symposium addressing transparency issues. This issue of FYI and an accompanying Bank Trends report summarize the comments provided by participants in the June FDIC symposium. FYI 7/25/02

• FinCEN Announces it is Rescinding an Exemption

  FinCEN is announcing that it is rescinding an exemption from the provisions of the Bank Secrecy Act regulations granted in 1972 to persons required to register as brokers or dealers in securities (``broker-dealers'') solely to permit the sale of variable annuities contracts issued by life insurance companies. 67FR48388 (text) 7/24/02

• Software Change to the Fedwire Funds Service Message Format

  A number of changes were made to the Fedwire Funds Service message format to facilitate mapping from a SWIFT MT103 to Fedwire . One of these changes was to add a second optional element to Business Function Code field tag {3600} to map to the SWIFT field 26T, Transaction Type Code. This second optional element of the Business Function Code {3600} is intended to be present only when the first element, Business Function Code, is CTR. Software Change and Clarification of Field {3600} 7/24/02

• FBIIC Policy on Sponsorship of GETS Cards

  In order to provide guidance to financial organizations seeking sponsorship for NCS services, the Financial and Banking Information Infrastructure Committee (FBIIC) is developing a series of policies on the sponsorship of priority telecommunications access for private sector entities through the NCS. OCC 2002-33 FBIIC GETS Process 7/24/02

• Prohibition Against Interstate Deposit Production: Annual Loan-to-Deposit Ratios

  The FRB, OCC and FDIC recently issued updated 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 (Interstate Act). OCC 2002-32, 2002 Host State Loan-to-Deposit Ratios 7/24/02

• OCC Issues Alert on Unauthorized Banking Entities

  This issuance alerts banks and financial regulators that Trinity Savings Bank and Goldman & Stein are not authorized to conduct banking or financial business in Belize. Neither entity has been authorized by the OCC to conduct banking in the United States. ALERT 2002-8 7/24/02

• 2001 FDIC Program Performance Report

  The Report compares actual performance to the goals established in the FDIC's 2001 Annual Performance Plan. 7/24/02

• OFAC

  The Office of Foreign Assets Control has issued guidance on transshipments to Iran. Guidance7/24/02

• Regulators Draft Guidance on Credit Card Lending

  Under the auspices of the FFIEC, the OCC, FRB, FDIC and OTS have developed account management and loss allowance guidance for credit card lending. FRB Press Release, OCC:NR 2002-61, OTS 02-32, FDIC-PR-86-2002, FFIEC Press Release , Guidance 7/23/02

• FDIC Issues Proposed Rule on State Banks Chartered as Limited Liability Companies

  The FDIC proposes to issue a regulation that would clarify that a bank that is chartered as an LLC under State law would be considered to be ``incorporated'' under State law if it meets certain criteria. 67FR48054 (text) 67FR48054 (pdf) 7/23/02

• Customer ID Proposals Published in Federal Register

  The proposed rules on customer identification and verification have now been published in the Federal Register. Written comments must be submitted within 45 days from today. 67FR48289 (text), 67FR48289 (pdf)7/23/02

• Treasury Issues Guidance on the USA PATRIOT Act, Pending Issuance of Final Rule

  The Department of the Treasury and FinCEN issued an interim rule advising financial institutions on how to comply with the statutory provisions of section 312 of the USA PATRIOT Act, pending issuance of the final rule that will be published by October 25, 2002. PO-3270 7/22/02

• FDIC Issues Alert on Missing Cashiers Checks

  The FDIC has been informed by Bank of America, Dallas, Texas, that 1,000 of the bank's cashier's checks have been stolen while in transit from the check printer to the bank. The bank's routing number is 114000019, and the account number is 001641003748. FDIC:FIL-80-2002 7/22/02

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

  The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 30), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-79-2002 7/22/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-78 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-78-2002 7/22/02

• FTC Testifies on Identity Theft and the Impact on Seniors

  The FTC told the U.S. Senate Special Committee on Aging that about 10 percent of consumers who called the agency to report that they are victims of identity theft are age 60 or older. FTC Press Release 7/19/02

• OCC Unveils New Version of Web-based Manual To Ease Access to Updated Application Requirements

  The OCC announced that the first six booklets in the Comptroller's Licensing Manual are now available on the OCC's Internet site. OCC:NR 2002- 60 Licensing Manual 7/19/02

• Administrative Actions Against PNC Financial Services Group

  The Board of Governors of the Federal Reserve System and the U.S. Securities and Exchange Commission jointly announced the issuance of administrative actions addressing bank supervisory and securities law-related matters against The PNC Financial Services Group, Inc., Pittsburgh, Pennsylvania, a bank holding company. FRB Press Release 7/19/02

• OFAC Comment Deadline Looms

  July 19 is the deadline for submitting comments on OFAC's proposal to make information public on OFAC civil penalty actions Don't miss the opportunity to tell them what you think! OFAC Civil Penalties Proposal How to Write a Comment Letter 7/18/02

• OCC Issues Examination Procedures for COPPA

  Financial institutions are subject to COPPA if they operate a Web site(s) or online service(s) (or portion thereof) directed to children, or have actual knowledge that they are collecting or maintaining personal information from a child online. OCC 2002-31 Examination Procedures 7/18/02

• Treasury Department and Social Security Administration Announce Plans to Develop ID Verification System to Help Fight Identity Fraud

  The Treasury Department and the Social Security Administration (SSA) announced an agreement to develop and implement a system by which financial institutions may access a database to verify the authenticity of Social Security Numbers provided by customers at account opening. PO-3264 7/18/02

• Treasury and Federal Financial Regulators Issue Patriot Act Regulations on Customer Identification

  The Department of the Treasury and seven federal financial regulators issued proposed rules that would require certain financial institutions to establish minimum procedures for identifying and verifying the identity of customers seeking to open new financial accounts. Written comments on the proposed rules may be submitted within 45 days of their publication in the Federal Register. FRB Press Release, FDIC: PR-85-2002, NCUA Press Release, SEC Press Release, OCC:NR 2002-59 , OTS 02-31 7/18/02

• 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. Electronic Interpretations and Actions 7/18/02

• OCC Releases CRA Evaluations For National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of June 15 through July 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 2002-58 7/18/02

• THE WAIT IS OVER -- Proposed Rules on Customer ID Just Issued

  The proposed rules on customer identification and verification, required by Section 326 of the USA PATRIOT Act have now been issued by the various regulatory agencies. Proposed Rules on Customer ID Just Issued 7/17/02

• OCC Issues Correction to Previously Issued Rule

  On June 6, 2002, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC published a final rule in the Federal Register that amended each Agency's regulation governing deposit production offices. Today they issued a document that corrects a typographical error in the OCC's regulation. 67FR46842 7/17/02

• OCC Announces New Enforcement Actions and Terminations

  The OCC announced 11 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 3 terminations of an existing enforcement action. OCC:NR 2002- 57 7/17/02

• NCUA Submits Comment to SEC Supporting Credit Union Ability to Offer Sweep Accounts

  The NCUA announced that it has issued a letter to the SEC in response to the SEC's request for comment on the Notice of Application of Evangelical Christian Credit Union (ECCU) for Exemptive Relief (SEC File No. S7-12-01). In the letter, NCUA Chairman Dennis Dollar stated, We support exemptive relief for ECCU and for all federally-insured credit unions to permit them to offer sweep account services without registration to all their members on the same terms and conditions as banks and thrifts.” NCUA Press Release 7/17/02

• FBI Studying SSN Misusage for Terrorist Links

  The FBI has reported to Congress that it is undertaking a multi-phase data mining project that seeks to identify potential terrorist related individuals through Social Security Number misusage analysis. The report was in connection with a Congressional hearing on identity theft. FBI Statement to Congress on ID Theft 7/16/02

• Regulators are Hosting an Inter-agency Information Technology Security Conference

  The Regulators are hosting an inter-agency information technology security conference October 15 – 17, 2002 at the Hilton DFW Lakes Executive Center in Grapevine, Texas. OTS Press Release 7/16/02

• RESPA Proposed Rule to Simplify and Improve the Process Of Obtaining Mortgages to Reduce Settlement Costs to Consumers

  HUD submitted to Congress a draft of its proposed rule to reform the Real Estate Settlement Procedures Act ("RESPA"). Congress has 15 days from the date of submission to review this draft proposal before HUD can publish it in the Federal Register for public comment. The draft proposed rule has three major parts. First, the proposal clarifies disclosure rules applicable to transactions involving mortgage brokers. Second, the proposed rule amends the good faith estimate disclosure ("GFE") to increase clarity and make it more useful to consumers. Third, the draft proposal creates a system of guaranteed cost disclosures pursuant to a safe harbor under Section 8 of RESPA. Press Release (Word doc) 7/15/02

• FRB's Financial Services Publishes Operating Circular #7

  The Operating Circular sets forth the terms under which the Federal Reserve Bank of (City) maintains Securities Accounts and effects Transfers of Book-Entry Securities for Participants. By maintaining a Securities Account, a Participant agrees to all theprovisions of this Circular, as amended from time to time. Operating Circular #7 7/15/02

• Service Charge Information via FedLine for the Web

  FedLine for the Web provides Internet access to many of the Federal Reserve's financial services. These services can be accessed from most Internet-connected PCs within your institution, eliminating the need for a dedicated FedLine terminal with proprietary Federal Reserve software. Initially, only select services will be available on FedLine for the Web, but the Federal Reserve will continue to develop and introduce new Web-based services to support your business environment. Service Charge Information 7/15/02

• Account Management Information via FedLine for the Web

  FedLine for the Web provides Internet access to many of the Federal Reserve's financial services. These services can be accessed from most Internet-connected PCs within your institution, eliminating the need for a dedicated FedLine terminal with proprietary Federal Reserve software. Initially, only select services will be available on FedLine for the Web, but the Federal Reserve will continue to develop and introduce new Web-based services to support your business environment. Account Management Information 7/15/02

• Agenices Request Comment on Changes to the Call Report

  The FFIEC, of which the agencies are members, has approved the agencies' publication for public comment of proposed revisions to the Consolidated Reports of Condition and Income (Call Report) for banks and the Thrift Financial Report (TFR) for savings associations, which are currently approved collections of information. 67FR46250 7/12/02

• FedACH File Edit Change

  A change to FedACH edit procedures will align the stale date and duplicate file parameters. Beginning July 29, 2002, the stale date edit will check for file creation dates that are older than four days. Previously the stale date edit looked for files that were over five days old. FRB Financial Services 7/12/02

• New Quarterly Letter to FDIC Stakeholders to Communicate Significant Agency Activities

  The Letter to Stakeholders will be published at the end of each calendar quarter. It will appear in both electronic and hard-copy forms. This is just one of many tools we are using to communicate significant activities at the FDIC. FDIC:FIL-77-2002, Letter to Stakeholders FYI 7/11/02

• Minutes of Board discount rate meetings, April 1, 2002, to May 6, 2002

  The Federal Reserve Board released the minutes of its discount rate meetings from April 1 to May 6, 2002. FRB Press Release 7/11/02

• Written Agreement with Rurban Financial and State Bank and Trust

  The Federal Reserve Board announced the execution of a Written Agreement by and among Rurban Financial Corp., Defiance, Ohio; The State Bank and Trust Company, Defiance, Ohio; the Federal Reserve Bank of Cleveland; and the Ohio Division of Financial Institutions. FRB Press Release 7/11/02

• U.S. Lifts Financial Advisories on Israel, Lebanon and St. Kitts & Nevis

  FinCEN notified U.S. financial institutions that, based on the improvements in their anti-money laundering regimes and on the FATF action, the U.S. is withdrawing the FinCEN Advisories on Israel, Lebanon, and St. Kitts & Nevis. Treasury Press Release FinCEN Advisory #26A FinCEN Advisory #18A, FinCEN Advisory #17A, Financial Action Task Force (FATF) 7/10/02

• FTC Calls for Stiffer Penalties for Identity Thieves

  The Federal Trade Commission testified that it supports a Senate bill to increase penalties for identity thieves who use stolen identities to commit certain federal crimes. FTC Press Release 7/10/02

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

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 29), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-74-20027/10/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on four separate financial institutions are in circulation. FDIC:FIL-75-2002 7/10/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-76 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-76-2002 7/10/02

• Federal Reserves Financial Services Publishes the Summary of Billing Service Changes

  The survey results identified a need to improve the Summary Statement of Service Charges. Specifically, customers indicated they had trouble interpreting the Billing statement and reconciling their monthly charges. Summary of Billing Service Changes 7/9/02

• Written Agreement with First American Bank

  The Federal Reserve Board announced the execution of a Written Agreement by and among First American Bancorp, Inc., Stonewall, Oklahoma, the First American Bank, Stonewall, Oklahoma, the Federal Reserve Bank of Kansas City, and the Oklahoma State Banking Department. FRB Press Release 7/9/02

• Orders of Restitution against former directors of Great Eastern Bank

  The Federal Reserve Board announced the issuance of Orders of Restitution against William Chiang, Paul Lee, Joseph C.C. Kuo, Lih Yuh Kuo, and Ching-Tseh Yao, all former directors of the Great Eastern Bank, Flushing, New York. FRB Press Release 7/9/02

• FOMC Announces 2003 Schedule

  The Federal Open Market Committee announced its tentative meeting schedule for 2003 FRB Press Release 7/8/02

• FDIC Issues July 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 April 2002. FDIC:PR-84-2002 7/8/02

• Opportunities for Former FDIC Employees

  The FDIC is collecting the names of former employees who may be interested in working on projects, including foreign technical assistance projects, when needed by federal government agencies, international organizations, or private organizations seeking persons knowledgeable about banking and financial issues. These projects vary in nature, scope and duration. Employment Opportunity 7/5/02

• OCC Issues Bulletin on OFAC Proposed Rulemaking

  The OCC bulletin transmits a notice of proposed rulemaking published by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) on June 19 concerning the availability of information. This notice was previously announced on BOL. OCC 2002-30 7/5/02

• FFIEC Publishes Call Report Validation Criteria

  Added March 31, 2002 Call Report Validation Criteria Edits Expressed in Boolean Logic: PDF | Excel - FINAL, revised July 1, 2002 7/5/02

• OCC Issues Alert on Fictitious Regulatory Agency Issuances

  This issuance alerts banks and financial regulators to the distribution from an unknown source by e-mail, fax, or regular mail of fictitious regulatory agency issuances that contain proposals involving claims to certain international payments reportedly held by the OCC. The names and signatures on these documents are not those of real OCC officials. OCC:Alert 2002-7 7/3/02

• FDIC Sells Nextbank Owned Credit Card Portfolio

  The FDIC has announced the sale of the owned credit card portfolio from the former NextBank, National Association, Phoenix, Arizona (NextBank). NextBank was closed on February 7, 2002, by the Office of the Comptroller of the Currency and the FDIC was named receiver. FDIC:PR-83-2002 7/3/02

• FFIEC Publishes Statistical Release

  March 31, 2002 E16 Country Exposure Statistical Release 7/3/02

• Suspicious Activity Reporting Rule for Broker-Dealers Finalized

  In a continuing effort to expand the coverage of suspicious activity reporting to all potentially vulnerable sectors of the financial services industry, the Financial Crimes Enforcement Network announced a new rule requiring brokers and dealers in securities to report suspicious activity. FinCEN Press Release7/2/02

• FTC Charges of Violating Debt Collection and Credit Reporting Laws

  Canoga Park, California-based D.C. Credit Services, Inc. and company co-owner, David Cohen, have agreed to pay a $300,000 civil penalty as part of a settlement of Federal Trade Commission charges that they violated the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). In addition to requiring the civil penalty, the consent decree to settle the charges would permanently ban defendant David Cohen from engaging in debt collection activity. FTC Press Release 7/2/02

• FDIC Issues Final Rule on an Agency Reorganization

  On June 30, 2002, the FDIC, through an internal organizational order, merged the Division of Supervision and the Division of
  Compliance and Consumer Affairs and as a result of the merger, changed the name of the ``Division of Supervision'' and ``Division of Compliance and Consumer Affairs'' to the ``Division of Supervision and Consumer Protection'' (DSC). 67FR44351 (text) 7/2/02

• FDIC To Market Connecticut Bank of Commerce Assets

  The FDIC announced that it will market a $248 million loan portfolio from the failed Connecticut Bank of Commerce, Stamford, Connecticut, whose offices were located in several Connecticut cities and New York, New York, within the next 45 days. FDIC:PR-82-2002 7/2/02

• Testing, Testing

  Is it a subliminal message from the regulators emphasizing the importance of testing your compliance program and testing your information security measures, or is it simply a reflection of the fact that some Internet technology simply isn't ready for prime time? Start your day with a chuckle by viewing an FDIC Webcast on "Enhancing Financial Transparency". You'll see that even the regulators can get befuddled by technology. (And once you get past the humorous opening part, the Webcast really is excellent.) 7/1/02

• FRB of Philly Enters into Written Agreement with PA Bank

  The latest bank to bite the BSA dust is a Pennsylvania bank which entered into a written agreement with the Federal Reserve Bank of Philadelphia June 20, 2002. The Agreement requires the bank to conduct a comprehensive review of BSA compliance controls and procedures and identification and reporting of suspicious activity and make a written report of what it finds to the reserve bank, plus a lot more. You'll want to read the order. FRB Press Release 7/1/02

• Money Smart, a training program from the FDIC

  The FDIC recognizes the importance of financial education, particularly for people with little or no banking experience. That 's why they created Money Smart, a training program to help adults outside the financial mainstream enhance their money skills and create positive banking relationships. Money Smart 7/1/02

• FDIC Approves Assumption of the Insured Deposits and Certain Assets of the Universal Federal Savings Bank, Chicago, Illinois

  The FDIC has approved the assumption of the insured deposits of Universal Federal Savings Bank, Chicago, Illinois by Chicago Community Bank, Chicago, Illinois. FDIC:PR-81-2002, Spanish Version 7/1/02

• FDIC Approves Assumption of The Insured Deposits and Certain Assets of The Connecticut Bank of Commerce, Stamford, Connecticut

  The FDIC has approved the assumption of the insured deposits of The Connecticut Bank Of Commerce, Stamford, Connecticut, by Hudson United Bank, Mahwah, New Jersey. FDIC:PR-80-2002 7/1/02

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

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in May. One administrative hearing is scheduled for July. FDIC:PR-79-2002 7/1/02

• FDIC Chairman Appoints Cottrell L. Webster As Agency's Ombudsman

  FDIC Chairman Don Powell today announced the appointment of Cottrell L. Webster to the post of Ombudsman. Webster replaces Ronald F. Bieker, who will become the agency's Regional Director in Kansas City. Webster now serves as Director of the Division of Supervision's Memphis Regional Office. FDIC:PR-78-2002 7/1/02

• FDIC is Centralizing the Consumer Affairs Function

  The FDIC is pleased to announce that it is centralizing its consumer affairs function with the establishment of the National Consumer Response Center (CRC) within the Division of Supervision and Consumer Protection. This move will improve efficiency and enhance service to consumers needing assistance. The CRC will become operational on July 1, 2002. FDIC:FIL-73-2002 7/1/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on Guaranty Bank of California, Los Angeles, California, are in circulation. The routing number is 122235902. It appears the checks may be circulating nationwide. FDIC:FIL-72-2002 7/1/02

• FDIC Issues Alert on Missing Cashier's Checks

  The FDIC has been informed by Bank West of Nevada, Las Vegas, Nevada, that 284 of the bank's cashier's checks are missing and may have been stolen. The bank's routing number is 122401778. FDIC:FIL-71-2002 7/1/02

The OCC has issued two Alerts regarding counterfeit cashier's checks with the routing number of The First National Bank of Wellston, Wellston, OH and counterfeit official checks with the routing number of LifeStore Bank, West Jefferson, NC. Information regarding the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.

Comptroller Curry presented a statement and written testimony, and Chairman Gruenberg a statement, on the Volcker Rule before the House Committee on Financial Services.

The Bureau Blog features an article explaining health care credit cards and four things consumers need to know about how the deferred interest credit cards work.

The Federal Emergency Management Agency (FEMA) has published a final rule [79 FR 7087] identifying communities in Indiana, Kentucky , New York and Pennsylvania where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension on March 3, 2014, because of noncompliance with the floodplain management requirements of the program.

OCC Bulletin 2014-1, issued yesterday, announced a January 27, 2014, notice of proposed rulemaking (NPR) [79 FR 4282] that would establish minimum standards for the design and implementation of a risk governance framework for large insured national banks, insured federal savings associations, and insured federal branches of foreign banks with average total consolidated assets of $50 billion or more. Comments on the proposal will be accepted through March 28, 2014.

Treasury has targeted the financial and support networks of the Haqqani Network leadership by designating Saidullah Jan, Yahya Haqqani, and Muhammad Omar Zadran as Specially Designated Global Terrorists (SDGTs) under Executive Order (E.O.) 13224. All three are being designated for acting for or on behalf of the Haqqani Network while Muhammad Omar Zadran is also being designated for acting for or on behalf of the Taliban. Information regarding the designations has been posted in a BOL OFAC Update.

A news release from the Financial Industry Regulatory Authority (FINRA) has announced the assessment of an $8 million fine against New York-based Brown Brothers Harriman & Co. (BBH) for substantial anti-money laundering (AML) compliance failures and other related violations. The fine, the largest levied by FINRA for AML violations, resulted from a failure to have an adequate anti-money laundering program in place to monitor and detect suspicious penny stock transactions; failing to sufficiently investigate potentially suspicious penny stock activity brought to the firm's attention; the failure to file SARs; and the lack of an adequate supervisory system to prevent the distribution of unregistered securities. As part of the FINRA action, BBH's former Global AML Compliance Officer Harold Crawford was also fined $25,000 and suspended for a month.

The OCC has issued two Alerts regarding counterfeit cashier's checks with the routing number of The First National Bank of Wellston, Wellston, OH and counterfeit official checks with the routing number of LifeStore Bank, West Jefferson, NC. Information regarding the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.

Comptroller Curry presented a statement and written testimony, and Chairman Gruenberg a statement, on the Volcker Rule before the House Committee on Financial Services.

The Bureau Blog features an article explaining health care credit cards and four things consumers need to know about how the deferred interest credit cards work.

The Federal Emergency Management Agency (FEMA) has published a final rule [79 FR 7087] identifying communities in Indiana, Kentucky , New York and Pennsylvania where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension on March 3, 2014, because of noncompliance with the floodplain management requirements of the program.

OCC Bulletin 2014-1, issued yesterday, announced a January 27, 2014, notice of proposed rulemaking (NPR) [79 FR 4282] that would establish minimum standards for the design and implementation of a risk governance framework for large insured national banks, insured federal savings associations, and insured federal branches of foreign banks with average total consolidated assets of $50 billion or more. Comments on the proposal will be accepted through March 28, 2014.

Treasury has targeted the financial and support networks of the Haqqani Network leadership by designating Saidullah Jan, Yahya Haqqani, and Muhammad Omar Zadran as Specially Designated Global Terrorists (SDGTs) under Executive Order (E.O.) 13224. All three are being designated for acting for or on behalf of the Haqqani Network while Muhammad Omar Zadran is also being designated for acting for or on behalf of the Taliban. Information regarding the designations has been posted in a BOL OFAC Update.

A news release from the Financial Industry Regulatory Authority (FINRA) has announced the assessment of an $8 million fine against New York-based Brown Brothers Harriman & Co. (BBH) for substantial anti-money laundering (AML) compliance failures and other related violations. The fine, the largest levied by FINRA for AML violations, resulted from a failure to have an adequate anti-money laundering program in place to monitor and detect suspicious penny stock transactions; failing to sufficiently investigate potentially suspicious penny stock activity brought to the firm's attention; the failure to file SARs; and the lack of an adequate supervisory system to prevent the distribution of unregistered securities. As part of the FINRA action, BBH's former Global AML Compliance Officer Harold Crawford was also fined $25,000 and suspended for a month.

• Statement by FTC Chairman Muris Regarding Proposed RESPA Rule Revisions by Housing and Urban Development

  Speaking at the National Press Club in Washington, D.C. , Department of Housing and Urban Development (HUD) Secretary Mel Martinez announced a proposal that would reform the regulatory requirements under the Real Estate Settlement Procedures Act (RESPA) that govern settlement fees paid by home buyers. FTC Press Release 6/28/02

• OCC Survey Shows Measured Response By Banks to Slowing Economy

  The OCC's eighth annual Survey of Credit Underwriting Practices found that underwriting standards for commercial and retail loans tightened for the second consecutive year in a measured response to a slowing economy and pockets of deteriorating product performance. OCC:NR 2002-56 6/28/02

• 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. Electronic Interpretations and Actions 6/28/02

• FDIC Expands Money Smart Alliance Program

  The FDIC announced that the U.S. Department of Housing and Urban Development, the U.S. Small Business Administration, the United Way of Greater Los Angeles and the CHARO Business Center have joined the FDIC in an effort to raise financial literacy in underserved communities and bring the unbanked into healthy banking relationships through the FDIC's Money Smart financial education program. The announcement was made at a news conference in Los Angeles. FDIC:PR-75-2002 6/28/02

• FDIC Announces Receivership of Universal Federal Savings Bank, Chicago, Illinois

  Universal Federal Savings Bank, Chicago, Illinois, was closed by the Office of Thrift Supervision (OTS), and the Federal Deposit Insurance Corporation (FDIC) was named receiver. FDIC:PR-76-2002 Statement 6/28/02

• Fed Leaves Interest Rates Unchanged

  The Federal Open Market Committee decided to keep its target for the federal funds rate unchanged at 1 3/4 percent. FRB Press Release 6/27/02

• Scam Artists Use Do Not Call Registry to Commit Fraud

  Scam artists capitalizing on the popularity of existing state "Do Not Call" lists and the proposed FTC "Do Not Call" registry have devised yet another method to trick consumers into giving up personal information, such as their Social Security number, bank account number, credit card number or telephone calling card number. FTC Press Release 6/27/02

• FFIEC Adds June Forms

  The FFIEC added the June 2002 FFIEC 002 Reporting Form and instructions and the June 2002 Instructions for Preparation of the FFIEC 031 and 041 Reporting Forms. 6/27/02

• Financial Institution Guidelines for Making Same-day Federal Tax payments in EFTPS

  The guidelines provide consolidated information to financial institutions regarding same-day payment methods to remit Federal tax payments for business taxpayers. FRB Financial Services 6/27/02

• Reg C Changes Published in the Federal Register

  The FRB has published in the Federal Register, its amendments to Regulation C (the HMDA reg) and staff interpretations. There is also a new technical amendment which requires lenders to ask telephone applicants for monitoring information. The technical amendment on telephone applicants is effective for applications taken beginning January 1, 2003. 67FR43217 (text), 67FR43218 (text) 6/27/02

• FDIC Announces Receivership Of The Connecticut Bank Of Commerce, Stamford, Connecticut

  The Connecticut Bank of Commerce, Stamford, Connecticut, was closed by the Banking Commissioner, Connecticut Department of Banking, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. FDIC:PR-74-2002 Closing Information 6/27/02

• New Money Smart Initiatives Announced at San Antonio Event

  As part of the national rollout of the Federal Deposit Insurance Corporation's (FDIC) Spanish-language version of its highly successful Money Smart financial education program, several new initiatives were announced at a news conference in San Antonio, Texas. FDIC:PR-73-2002 6/27/02

• FDIC Announces Release of Spanish Language Version of Money Smart Program

  Calling financial education "key to building assets and achieving long-held dreams," FDIC Chairman Don Powell launched the Spanish language version of the FDIC's adult financial education curriculum, Money Smart, at a news conference in Pilsen, a Latino neighborhood in Chicago. FDIC:PR-71-2002 , Speech 6/26/02

• FDIC Issues Removal and Prohibition Order and a Civil Money Penalty Against a Texas Banker

  The FDIC has issued a removal and prohibition order and a civil money penalty of $2,500 against Vernon Beryl Murdock, Jr., formerly with the Kent County State Bank, Jayton, Texas. FDIC:PR-72-2002 6/26/02

• Banking agencies issue host state loan-to-deposit ratios

  The FRB, OCC and FDIC iissued 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. These ratios update data released in June 2001. Ratios, FRB Press Release, OCC:NR 2002-55 FDIC:FIL-70-2002, FDIC-PR-70-2002 6/25/02

• OCC Issues Booklet on Insurance Activities

  The OCC issued a booklet that provides information to national banks and OCC examiners on the risks, controls and supervision of national bank insurance activities. OCC:NR 2002- 54, Booklet 6/25/02

• Regulation C Changes Become Official

  The FRB has published its amendments to Regulation C (the HMDA reg) and staff interpretations reported on earlier in BOL Top Stories. There is also a new technical amendment which requires lenders to ask telephone applicants for monitoring information.. The technical amendment on telephone applicants is effective for applications taken beginning January 1, 2003. FRB Press Release 6/24/02

• Regulators Distribute Call Report for Second Quarter 2002

  Banks should complete your second 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 July 30, 2002. FDIC:FIL-69-2002 6/24/02

• OTS Announces 81 CRA Exams Secheduled for 3rd Quarter 2002

  The OTS announced that 81 savings associations are scheduled for Community Reinvestment Act (CRA) examinations during the third quarter of 2002. OTS 02-30, Exam Schedule 6/24/02

• FATF Annual Report for 2001-2002 released

  The Financial Action Task Force on Money Laundering (FATF) issued its thirteenth annual report. The report outlines the main achievements of the FATF in 2001-2002 under the Presidency of Hong Kong, China, including the significant progress that has been made in combating terrorist financing and in the work on non-cooperative countries and territories (NCCTs). FATF Press Release 6/24/02

• OCC Issues Bulletin on Previously Issued Proposed Rule to Implement a Provision of the USA PATRIOT Act

  Section 312 of the act furthers this goal by requiring U.S. financial institutions to establish due-diligence policies,
  procedures, and controls reasonably designed to detect and report money laundering through correspondent accounts and private banking accounts of non-U.S. persons. Private banking accounts involve accounts of $1 million or more for individuals that are administered by an officer, employee, or agent of a financial institution acting as a liaison between the financial institution and the direct or beneficial owner of the account. OCC 2002-29 6/24/02

• Bill McPherson Named Deputy Comptroller for Large Banks; Michael Brosnan Appointed Examiner-in-Charge

  The Office of the Comptroller of the Currency announced that James W. (Bill) McPherson has been named Deputy Comptroller for Large Banks. Mr. McPherson, who has served as the Examiner-in-Charge for Bank of America, NA, since January, 1998, will report to Douglas W. Roeder, Senior Deputy Comptroller for Large Banks. OCC:NR 2002-53 6/24/02

• Federal Reserve Financial Services Issues Memo on Unilateral Repo Adjustments

  As previously announced in Clearing Memorandum #236, Fedwire ® Securities Service participants will be permitted on payment date to unilaterally cancel a preauthorized debit associated with a Repo Claim Adjustment to another Fedwire participant. This will be done by submitting a Unilateral Adjustment Request to the Federal Reserve, with the understanding that the Fedwire participant sending the request has not notified the Fedwire participant counterparty and has no agreement from that counterparty. Clearing Memo #238 6/21/02

• Fedwire Securities Service Enhanced Functionality

  Under the category of Book-Entry Securities, the Federal Reserve Financial Services has just posted information on repo tracking and interim accounting cash adjustments. Federal Reserve Financial Services 6/21/02

• Treasury and FRB Announce Plans for Redesigned Notes

  In keeping with their strategy of maintaining the security of Federal Reserve notes by enhancing the design of U.S. currency every seven to ten years, the Department of the Treasury's Bureau of Engraving and Printing (Bureau) and the Federal Reserve Board announced plans to release the next generation of redesigned notes, with improved security features to deter counterfeiting. FRB Press Release 6/21/02

• FFIEC Updates the June 2002 Validation Criteria for the FFIEC031 and FFIEC041 Call Reports

  Validity Edits: PDF | Word - FINAL, revised June 11, 2002
  Quality & Intraseries Edits: PDF | Word - FINAL, revised June 7, 2002 6/21/02

• FDIC Money Smart Curriculum Adopted By South Carolina Adult Education Program

  The FDIC and the South Carolina Department of Education's Workplace Resource Center (WRC) today announced the adoption of the FDIC's Money Smart financial education program as the financial literacy curriculum for use in South Carolina's statewide adult education system. FDIC:PR-69-2002 6/21/02

• OTS Announces 81 CRA Exams Secheduled for 3rd Quarter 2002

  The schedule reflects OTS's implementation of Section 712 of the Gramm-Leach-Bliley Act, which extends the CRA examination cycle from approximately every two years to four or five years for institutions with aggregate assets of not more than $250 million and CRA examination ratings of “Satisfactory” or “Outstanding” respectively. OTS 02-30 6/21/02

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

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 28), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-67-2002 6/20/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on eight separate financial institutions are in circulation. It appears these checks may be circulating nationwide. FDIC:FIL-68-2002 6/20/02

• OCC Issues Final Rule on Capital Equivalency Deposits

  The OCC is revising certain requirements regarding CED deposit arrangements to increase flexibility for, and reduce burden on, certain Federal branches and agencies, based on a supervisory assessment of the risks presented by the particular institution.
  67FR41619 (text) 6/19/02

• FRB Seeking Nominations for Consumer Advisory Council

  The Council advises the Board on the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters on which the Board seeks advice. The group meets in Washington, D.C., three times a year. FRB Press Release 6/19/02

• FRB Financial Services Makes Holiday District Announcement

  The Federal Reserve Banks will be closed on Thursday, July 4, for the Fourth of July holiday. Please refer to the instructions for information on your local office. Unless it is listed separately, all of the particular District's offices and branches will follow the same Cash schedule. Holiday District Announcement 6/19/02

• Banking Industry Performance Remains Strong Despite Lingering Economic Weaknesses

  A report released in the FDIC's Regional Outlook describes recent signs of a consumer-led recovery in the U.S. economy, but cautions that banks remain exposed to lingering economic risks, notably in the area of subprime consumer lending. FDIC:PR-68-2002 6/19/02

• FDIC Appoints 43 Executives as Part of Upcoming Reorganization

  The reorganization and the appointments, which were made through a competitive selection process, become effective June 30.
  "My vision for a reorganized, refocused, accountable and more proficient FDIC is taking shape," Chairman Powell said today. "With these selections, the FDIC now has in place the management structure and team to put a greater percentage of our resources on the line, where our most critical work gets done." FDIC:PR-67-2002 6/18/02

• EFT Newsclips

  The Treasury Department's Financial mangement Service has published its Summer 2002 edition of EFT Newsclips. Among the articles we think are noteworthy are a report on the number of banks (nearly 600) who are participating in the Electronic Transfer Account ("ETA") program; beginning 1/1/04, Treasury checks will no longer have personal identification numbers (such as SSNs) on them; more than 100,000 businesses and individuals have signed up for the online EFTPS program; free marketing materials are available to promote EFTPS; the policy for government ACH reclamations has been clarified; and new SSA procedures are being implemented to quickly resolve erroneous reports from financial institutions of the death of Direct Deposit benefit recipients. EFT Newsclips6/18/02

• OCC Issues Bulletin on Homeownership Counseling: Notice of Statutory Requirement

  This bulletin announces the renewal of a statute requiring all creditors to provide notice of the availability of homeownership counseling to certain first-time mortgage loan applicants and to certain homeowners who are delinquent on their home loans. OCC 2002-27 6/18/02

• OCC Issues Bulletion on Prohibition Against Use of Interstate Branches Primarily for Deposit Production

  As reported earlier in the Federal Register, the OCC has issued a final rule regarding the prohibition against using interstate
  branches for purposes of "deposit production" found in section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act (Riegle-Neal Act). OCC 2002-28 6/18/02

• OCC Releases CRA Evaluations For 38 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of May 15 through June 14, 2002. OCC:NR 2002- 51 6/17/02

• FDIC Issues Several Alerts on Fictitious Checks

  The FDIC has learned that several fictitious cashier's checks are in circulation. The following alerts have been issued: FDIC:FIL-60-2002, FDIC:FIL-61-2002, FDIC:FIL-65-2002 6/17/02

• FDIC Issues Alert on Stolen Bank Note Security Paper

  The FBI has asked the FDIC to alert all FDIC-supervised banks to the theft of bank note security paper from the Denver County (Colorado) Vital Statistics Office. FDIC:FIL-62-2002 6/17/02

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

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 27), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-63-2002 6/17/02

• FDIC Issues FIL on FinCEN Advisory

  The Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) published issues 28 through 32 of its FinCEN Advisory in April 2002. FDIC:FIL-64-2002 6/17/02

• OCC Announces 2 New Enforcement Actions and 1 Termination

  The OCC announced 2 new enforcement actions taken against national banks and 1 termination of an existing enforcement action. OCC:NR 2002-52 6/17/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-66 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-66-2002 6/17/02

• Settlement Agent Information

  Under the category of Net Settlement, the Federal Reserve Financial Services has just posted information for settlement agents, with operating hours, contacts and forms. Federal Reserve Financial Services 6/14/02

• FDIC Chairman Announces Money Smart Alliance Program to Promote Financial Education in Underserved Communities

  Speaking before a meeting of the National Association of Affordable Housing Lenders, Powell stressed that financial education — particularly of those who are outside the financial mainstream — is a matter of critical importance both to regulators and the American people as a whole. FDIC:PR-66-2002 6/14/02

• FFIEC Adds Forms and Call Report Edits

  The FFIEC has added the June 2002 FFIEC 031 Reporting Form and FFIEC 041 Reporting Form , updated the UBPR order form, and posted validation criteria for the FFIEC031 and FFIEC041 Call Reports. FFIEC 6/13/02

• FDIC Publishes Quarterly Banking Profile - First Quarter 2002

  The Quarterly Banking Profile is a quarterly publication that provides the earliest comprehensive summary of financial results for all FDIC-insured commercial banks and savings institutions. This report card on industry status and performance includes written analyses, graphs, and statistical tables. 6/13/02

• FDIC Minority Depository Institutions Program

  The FDIC Board adopted a new Policy Statement Regarding Minority Depository Institutions. The new Policy Statement has been updated to reflect changes in certain regulations and to expand the FDIC's Minority Depository Institutions Program. Enhancements to the program include increased communication with Minority Depository Institutions, better coordination with trade associations that represent Minority Depository Institutions, defined roles of a national program coordinator and regional coordinators, and more opportunities for institutions to request technical assistance. 6/13/02

• FFIEC Updates Reporting Forms

  The FFIEC has updated two Reporting Forms for June 2002 -- FFIEC 031(Consolidated Reports of Condition and Income for A Bank With Domestic and Foreign Offices) and FFIEC 041 (Consolidated Reports of Condition and Income for A Bank With Domestic Offices. FFIEC 031, FFIEC 041 6/12/02

• FFIEC Reports that the March 31, 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 6/12/02

• FATF to Publish Annual Report and Report on Non-Cooperative Countries and Territories

  The Financial Action Task Force on Money Laundering (FATF), will issue its thirteenth annual report on its anti-money laundering and anti-terrorist financing activities as well as a new report updating its findings on the non-cooperative countries and territories in the international fight against money laundering. FATF Press Release 6/12/02

• Chairman Details Progress Made in Implementing The Federal Trade Commission's New Privacy Agenda

  Remarks Presented at the Networked Economy Summit in Reston, Virginia
  Presenting remarks titled "Protecting Consumers' Privacy: Goals and Accomplishments" at the Networked Economy Summit in Reston, Virginia, Federal Trade Commission Chairman Timothy J. Muris said that the FTC has made significant strides in implementing the Privacy Agenda announced last October, and pledged continued diligence to ensure that consumers are protected as the "information economy" grows more complex. FTC Press Release 6/12/02

• OCC Issues Bulletin on Reg Z Final Rule

  As earlier announced by the Federal Reserve, the revisions clarify how creditors that place Truth in Lending Act disclosures on the same document with the credit contract may satisfy the requirement for providing the disclosures, in a form the consumer may keep, before consummation. OCC 2002-26, Final Rule 6/11/02

• OFAC

  Yesterdays OFAC change should not affect banks. It has simply issued License Application Guidelines for specific licenses for travel to Cuba to engage in educational exchanges not pursuant to a degree program. OFAC 6/11/02

• OTS Issues Proposed Rule for Recordkeeping and Confirmation Requirements that Effect Securities Transactions

  The proposal 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. 67FR39886 (text) 6/11/02

• OTS Proposes Standards for Thrift Broker-Dealer Activities Without SEC Registration

  The OTS is proposing standards for federal savings associations that may now perform certain broker-dealer activities, just like banks, without registering with the Securities and Exchange Commission. OTS 02-29 6/11/02

• OCC Notes FinCEN's Country Updates

  The OCC has issued AL 2002-5 to advise banks of a revision in the list of countries detailed in a previous OCC Advisory Letter (AL 2002-2). These deal with identification of countries with serious deficiencies in their counter-money-launder systems, as previously identified by FinCEN advisories. OCC: AL 2002-5 6/10/02

• FR-FMS Account Management Guide Revised

  The Federal Reserve Financial Management Service has revised its account management guide. It is designed as a practical reference to make it easier for financial institutions to manage reserve accounts. Account Management Guide 6/10/02

• FDIC Points to FATF Guidance

  The FDIC has published FIL-59-2002 to alert banks to guidance on detecting terrorist financing recently published by the Financial Action Task Force on Money Laundering (and previously noted on BOL). FDIC:FIL-59-2002 6/10/02

• Exception Fax Forms

  The Federal Reserves Financial Services publishes ACH Return Item Exception Fax Form. 6/10/02

• Virginia Woman Indicted in Scheme to Steal Keystone Assets

  FDIC Inspector General Gaston L. Gianni, Jr., has announced that Norma Faye Canipe of Virginia was indicted on June 5 in the Southern District of West Virginia, Charleston, West Virginia, in connection with a scheme to obtain property and other assets owned by Terry L. Church and her family. Church is the former Vice President of the failed First National Bank of Keystone, Keystone, West Virginia. FDIC:PR-65-2002 6/10/02

• FedWire Security Services Enchanced Functionality

  The implementation of Repo Tracking and Interim Accounting cash adjustments will not begin in June 2002, as previously announced. However, participants may continue to test Interim Accounting and Repo Tracking in the Depository Institution Testing (DIT) environment. FedLine 6/10/02

• Fed Announces FedImage Services

  The Federal Reserve announced FedImage Services, an all-new image service for financial institutions, recognizing the increasing role that image-based services are playing in the evolution of the U.S. payments system and the migration toward more electronic payments. FedImage Services 6/10/02

• FDIC Imposes Civil Money Penalties Against Five Ohio Bankers

  The FDIC has issued civil money penalties totaling $17,000 against five directors and officers of The Monitor Bank, Big Prairie, Ohio. FDIC:PR-64-2002 6/7/02

• OCC Speeches

  Mark A. Nishan, Chief of Staff, Office of the Comptroller of the Currency, Before a Bankers Outreach Meeting Minneapolis, Minnesota, NR 2002- 50 Remarks by John D. Hawke, Jr., Comptroller of the Currency, Before The Risk Management Association's Capital Management Conference Washington, D.C. , OCC: NR 2002- 49 6/7/02

• HUD Notice Clarifies Applicability of Homeownership Counseling Requirement

  In Mortgagee Letter 2002-12, the Department of Housing and Urban Development describes the braod scope of the types of loans to which the homeownership counseling notices apply. Mortgagee Letter 2002-12 6/6/02

• Agencies Amend Rule On Prohibition Against Using Interstate Branches Primarily for Deposit Production

  The Riegle-Neal Interstate Banking and Branching Efficiency Act prohibits any bank from establishing or acquiring a branch outside of its home state primarily for the purpose of deposit production. Section 106 of the Gramm-Leach-Bliley Act expands this prohibition to include any branch of a bank controlled by an out-of-state bank holding company. To conform their regulations to this statutory change, the agencies have amended their rules so that the prohibition against deposit production offices also applies to any bank or branch of a bank controlled by an out-of-state bank holding company. Joint Final Rule FRB Press Release, OCC:NR 2002- 47, FDIC-PR-63-2002, FDIC:FIL-58-2002 67FR38844 (pdf) 67FR38844 (txt) 6/6/02

• OCC Reports Bank Trading Revenues Over $3 Billion

  Earnings from cash instruments and derivatives trading activities at U.S. commercial banks grew to $3.1 billion in the first quarter 2002, an increase of $492 million from the previous quarter. The notional amount of derivatives grew by $946 billion this quarter to $46.3 trillion. OCC:NR 2002- 48, Bank Derivatives Report 6/6/02

• FDIC Issues June 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 March 2002. FDIC:PR-62-2002 6/6/02

• Call and Thrift Financial Reports

  The March 31, 2002, reports are now posted online. 6/5/02

• FDIC Consumer News

  Tips on banking long distance, saving for retirement and tracing old bank accounts are featured in the latest edition of Consumer News. 6/5/02

• Makes Public April Enforcement Actions; No Administrative Hearings Scheduled

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in April. No administrative hearings are scheduled for June. FDIC:PR-61-2002 6/5/02

• FDIC Announces Record Banking Industry Earnings; Returns at Large Banks Climb Most

  Commercial banks had record earnings of $21.7 billion in the first quarter, surpassing the previous quarterly record by 9.6 percent, the Federal Deposit Insurance Corporation reported today. The industry's return on assets (ROA), a basic yardstick of earnings performance, rose to 1.33 percent, the third-highest ever. FDIC:PR-60-2002 6/5/02

• CAC Schedules Next Meeting

  The Federal Reserve Board announced that the Consumer Advisory Council will hold its next meeting on Thursday, June 27. 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. FRB Press Release 6/4/02

• OCC Issues Bulletin on Independent Trust Bank Assessment

  Pursuant to newly revised 12 CFR 8.6(c), the independent trust bank assessment is based on "Fiduciary and Related
  Assets" as reported on Schedule RC-T of FFIEC Forms 031 and 041. OCC 2002-25 6/4/02

• FDIC Issues Preliminary Bank Earnings Report

  Wider net interest margins at large banks, combined with slow growth in noninterest expenses, helped propel commercial bank profits to a record $21.7 billion in the first quarter. Bank Earnings Report, FYI 6/4/02

• FinCEN Holds Law Enforcement Seminar on Informal Value Transfer Systems

  A seminar to discuss issues surrounding informal value transfer systems, to include hawala, was held May 29thy at the FinCEN. The seminar was attended by over 50 representatives from the law enforcement community. FinCEN News Release 6/4/02

• Treasury Department Issues Proposed Regulation Implementing Section 312 of the USA PATRIOT Act

  FinCEN publishes the Due Diligence Anti-Money Laundering Programs for Certain Foreign Accounts Implementing Section 312 of the USA PATRIOT ACT. This was earlier announced on BOL. Proposed Rule 6/4/02

• "Touring the Board" added to the FRB Web Site

  The site provides information about visiting the Federal Reserve in person and includes a "virtual tour" offering photos of the Board's buildings and art collection, as well as an architectural history of the Board's Eccles Building. FRB Press Release 6/4/02

• FFIEC Releases UBPR Schedule

  The FFIEC has announced that UBPR's will be available online 30 days after an institution's call report is filed. For the call reports which were due 4/30/02, UBPRs are available online beginning June 5. FFIEC Press Release 6/3/02

• OFAC Lists Changes

  OFAC has added new entities to its list, removed one entity, and revised the entry for another. BOL OFAC PAGE 6/3/02

• FATF Releases Public Consultation Paper on the Review of the Forty Recommendations

  The FATF is consulting all interested parties during its review of the Forty Recommendations on money laundering – the global anti-money laundering standard – to ensure that the Recommendations adequately address the changes in money laundering
  techniques and trends, new international developments, and other factors. FATF Press Release 6/3/02

• FDIC Issues Third Quarter 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 third quarter of 2002. FDIC:PR-59-2002 6/3/02

• OCC Issues Final Rule on Assessment of Fees

  As earlier published in the Federal Register and reported by BOL, the final rule updates section 8.6 to reference the appropriate portion of new forms issued by the Federal Financial Institutions Examination Council (FFIEC), which replace the FFIEC form
  currently referenced in section 8.6(c). OCC: 2002-24 6/3/02

• TO ACCESS PRIOR TOP STORIES

  To access previous Top Stories (such as the ones from May, for example), use the Top Stories Archive drop-down menu above, or the drop-down menu at the bottom of this page to select the month you wish to review.

The FDIC has released the ratings received by state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). Of the 99 institutions listed, four garnered "outstanding" ratings, and one received a "needs to improve."

The Federal Emergency Management Agency (FEMA) has published a notice [79 FR 6833] of its intent to suspend certain communities in Alaska, California, Florida, Georgia, Indiana, Oregon, Texas and Wisconsin from participation in the National Flood Insurance Program, because of their noncompliance with the floodplain management requirements of the program. The suspensions will be effective March 17, 2014, unless FEMA receives documentation of a community's corrective action.

The Financial Services Policy Committee of the Conference of Presidents of the Federal Reserve System has issued a press release thanking payment system participants for their feedback to the Reserve Banks' September 2013 consultation paper, "Payment System Improvement – Public Consultation Paper." Responses were received from individual financial institutions, businesses, payment networks and processors, software vendors, payment innovators, consultants, and consumers, as well as from trade groups representing financial institution and business members. The Reserve Banks also announced they are exploring the need for faster retail payments and for identifying gaps and opportunities related to payment system security. Updates on the payments system improvements efforts can be seen at FedPaymentsImprovement.org.

A free webinar, "Field of Membership Strategies for Federal Credit Unions," will be hosted by NCUA on Wednesday, February 19, 2014, at 2 p.m. ET. The following topics will be covered:

• Determining when expansions make sense strategically
• Advantages of each type of federal charter
• Policy requirements for various expansion options

Online registration is required in advance of the program.

FIL-7-2014 has been issued to remind FDIC-supervised institutions of the Final Rule published on December 19, 2013, consolidating separate recordkeeping and confirmation requirements for securities transactions that they conduct. The Rule rescinded a transitional rule for state savings associations and expanded the coverage of Part 344 to cover all FDIC-supervised institutions, while increasing to 500 transactions the threshold of the rule's Small Transaction Exception. The Final Rule was effective January 21, 2014.

The FDIC has released the ratings received by state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). Of the 99 institutions listed, four garnered "outstanding" ratings, and one received a "needs to improve."

The Federal Emergency Management Agency (FEMA) has published a notice [79 FR 6833] of its intent to suspend certain communities in Alaska, California, Florida, Georgia, Indiana, Oregon, Texas and Wisconsin from participation in the National Flood Insurance Program, because of their noncompliance with the floodplain management requirements of the program. The suspensions will be effective March 17, 2014, unless FEMA receives documentation of a community's corrective action.

The Financial Services Policy Committee of the Conference of Presidents of the Federal Reserve System has issued a press release thanking payment system participants for their feedback to the Reserve Banks' September 2013 consultation paper, "Payment System Improvement – Public Consultation Paper." Responses were received from individual financial institutions, businesses, payment networks and processors, software vendors, payment innovators, consultants, and consumers, as well as from trade groups representing financial institution and business members. The Reserve Banks also announced they are exploring the need for faster retail payments and for identifying gaps and opportunities related to payment system security. Updates on the payments system improvements efforts can be seen at FedPaymentsImprovement.org.

A free webinar, "Field of Membership Strategies for Federal Credit Unions," will be hosted by NCUA on Wednesday, February 19, 2014, at 2 p.m. ET. The following topics will be covered:

• Determining when expansions make sense strategically
• Advantages of each type of federal charter
• Policy requirements for various expansion options

Online registration is required in advance of the program.

FIL-7-2014 has been issued to remind FDIC-supervised institutions of the Final Rule published on December 19, 2013, consolidating separate recordkeeping and confirmation requirements for securities transactions that they conduct. The Rule rescinded a transitional rule for state savings associations and expanded the coverage of Part 344 to cover all FDIC-supervised institutions, while increasing to 500 transactions the threshold of the rule's Small Transaction Exception. The Final Rule was effective January 21, 2014.

• Unfair or Deceptive Acts or Practices: Applicability of the Federal Trade Commission Act

  The federal banking agencies are legally authorized to use enforcement powers under section 8 of the Federal Deposit Insurance Act against violations of this prohibition. FDIC:FIL-57-2002, FRB Press Release 5/31/02

• Financial Transparency and Regulatory Policy

  Financial transparency is of vital importance to market participants and regulators alike. The FDIC's mission to promote public confidence in the U.S. banking system gives it a shared responsibility for defining the rules of the road in the financial marketplace. To that end, the FDIC is hosting a June 4 symposium entitled Enhancing Financial Transparency where the nation's leading experts from the private and public sectors will address the issue from the perspective of financial analysis, accounting standards, and regulatory policy. FYI 5/31/02

• OCC Issues Third Quarter 2002 CRA Examination Schedule

  The OCC released its schedule of Community Reinvestment Act (CRA) examinations to be conducted in the third quarter of 2002. OCC:NR 2002- 46 5/31/02

• FRB Approves proposal of JPMorgan Chase Bank

  The Federal Reserve Board announced its approval of the notice by JPMorgan Chase Bank, New York, New York, to establish a branch at the Newport Center, 575 Washington Boulevard, Jersey City, New Jersey. FRB Press Release 5/31/02

• OFAC List Changes

  OFAC has made a change but it simply consists of an update to its list of authorized service providers under the Cuban Assets Control Regulations. BOL OFAC Page 5/30/02

• FinCEN Launches E-Filing System

  FinCEN announced that it has begun its pilot testing of the Patriot Act Communications System (PACS).PACS is designed to allow participating financial institutions to quickly and securely file Bank Secrecy Act (BSA)reports over the Internet. FinCEN News Release 5/30/02

• OCC Issues Final Rule on Fees Assessment

  The OCC is amending its regulation that addresses assessments for independent trust banks. The final rule updates the regulation to reference the appropriate portion of new forms issued by the Federal Financial Institutions Examination Council (FFIEC), which replace the FFIEC form currently referenced in the regulation. 67FR37664 (text), 67FR37664 5/30/02

• OTS Reports Record Quarterly Earnings, Profitability for Thrift Industry

  The OTS reported record thrift industry quarterly earnings of $3 billion for the first quarter of 2002. OTS 02-27 5/30/02

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

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 26), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-55-2002 5/30/02

• Summary of Deposits Survey for June 30, 2002

  The annual Summary of Deposits (SOD) survey and instructions for the period ending June 30, 2002, will be mailed on July 8 to institutions with more than a main office facility. FDIC:FIL-56-2002 5/30/02

• Mississippi Housing Initiative Adopts FDIC "Money Smart" Program

  The FDIC and the Mississippi Housing Initiative (MHI) announced the adoption of the FDIC's "Money Smart" financial education program to supplement the current homeownership curriculum used by MHI's Mississippi Home Buyer Education Center (MHEC) Program. FDIC:PR-58-2002 5/30/02

• Court Shuts down Cyberscam Permanently

  A U.S. District Court has ordered the perpetrator of an Internet scheme to halt his illegal practices. The defendant employed more than 5,500 copycat Web addresses to divert surfers from their intended Internet destinations to one of his sites, and hold them captive while he pelted their screens with a barrage of adult-oriented ads. FTC Press Release Related BOL Article 5/29/02

• FDIC Celebrates National NeighborWorks® Week

  June 1 - 8: The FDIC, a Neighborhood Reinvestment Corporation member, celebrates a week of neighborhood change. National NeighborWorks® Week 5/29/02

• Interagency Questions and Answers on the Capital Treatment of Recourse, Direct Credit Substitutes, and Residual Interests in Asset Securitizations

  The document clarifies several issues arising from the agencies' final rule on the capital treatment of these exposures. FDIC:FIL-54-2002 , OCC 2002-22, OTS CEO Ltr 162, Questions & Answers 5/28/02

• FRB Issues Proposed Rule to Restructuring Credit Programs

  This proposed restructuring of Federal Reserve credit programs is designed to improve the functioning of the discount window and does not represent a change in the stance of monetary policy. The proposed rule also would reorganize and streamline existing provisions of Regulation A. 67FR36544 5/28/02

• Treasury Department Issues Proposed Regulation Implementing Section 312 of the USA PATRIOT Act

  The Treasury Department issued a proposed rule implementing Section 312 of the USA PATRIOT Act. Section 312 requires certain U.S. financial institutions to take prescribed anti-money laundering measures with respect to correspondent and private banking accounts that they establish or maintain for non-U.S. persons. Treasury:PO-3125 5/24/02

• Interagency Advisory on the Unsafe and Unsound Use of Covenants Tied to Supervisory Actions in Securitization Documents

  This advisory alerts both bankers and examiners to the safety and soundness implications of covenants associated with supervisory actions in securitization documents. FDIC:FIL-53-2002, OCC 2002-21, OTS:CEO Ltr 161 5/24/02

• Interagency Guidance on Implicit Recourse in Asset Securitizations

  The guidance highlights the agencies' fundamental concern that implicit recourse may expose a bank's earnings and capital to potential losses. The guidance sets forth a range of supervisory actions that may be taken against a bank that provides implicit support to its securitizations. FDIC:FIL-52-2002, OCC 2002-20, OTS:CEO Ltr 163 5/24/02

• OCC Cautions National Banks on "Yield Chasing"

  The OCC issued guidance alerting national banks to the potential risk to future earnings and capital that arises when banks engage in "yield chasing" - taking on higher levels of credit, interest rate and liquidity risk to boost returns on their investment portfolios. OCC:NR 2002- 45 5/24/02

• 2003 FFIEC Examiner Education Course Catalogue

  5/24/02

• FDIC Publishes Bank Trends

  FYI 5/24/02

• FTC Issues Information Safeguards Rule

  The FTC has published in the federal register the final rule governing the safeguarding of customer records and information for the financial institutions subject to its jurisdiction. This was previously announced on BOL. 67FR36483 (text) 67FR36483 (pdf) 5/24/02

• Account Management Guide

  This Guide is designed as a practical reference to make it easier for financial institutions to manage reserve accounts. The Guide assumes a familiarity with accounting practice and provides a detailed discussion of each major aspect of reserve management, together with descriptions and samples of the reports and other information tools available from the Federal Reserve System. Account Management Guide 5/23/02

• FFIEC Internet Reporting System

  The system now offers the following aggregate reports: List of Banks in Peer Group, Peer Group Data Report, Peer Group Distribution Report, State Average Report, and State Average Distribution Report. Internet Reporting System 5/23/02

• Preliminary Bank Earnings Report

  At a June 3 press briefing, the FDIC Chairman will summarize the Preliminary Bank Earnings Report for the first quarter 2001. This Report is the earliest comprehensive analysis of the commercial banking industry's performance, based on the quarterly data that banks file with the FDIC. 5/23/02

• FDIC Publishes Semiannual Agenda of Regulations

  The FDIC has published its semiannual agenda of regulations in the Federal Register to inform the public of the Corporation's regulatory actions and encourage participation in the rulemaking process. FDIC:PR-56-2002 5/23/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-51-2002 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-51-2002 5/23/02

• FDIC Issues Alert/Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on Yukon National Bank, Yukon, Oklahoma, are in circulation. The bank's name is misspelled as "Yunkon National Bank" in the lower left corner of the counterfeit instruments, and the check number, routing number and account number appear to be typewritten and not MICR encoded. FDIC:FIL-50-2002 5/23/02

• FDIC Issues Special Alert/Counterfeit South Carolina Driver's Licenses and Identification Cards

  The FBI has asked the FDIC to alert all FDIC-supervised banks to the theft of equipment and supplies used to produce driver's licenses and identification cards. The equipment and supplies were stolen from two offices of the South Carolina Department of Public Safety on March 12, 2002, and March 25, 2002. The equipment has been recovered and the suspect has been arrested. However, it is believed that a number of counterfeit South Carolina driver's licenses and identification cards were produced. FDIC:FIL-49-2002 5/23/02

• Chairman Powell's Statement on Passage of Deposit Insurance Reform Legislation By House of Representatives

  FDIC:PR-57-2002 5/23/02

• FDIC and White House Office Sign Agreement Promoting Financial Education in U.S. Asian Communities

  Under an agreement the AAPI will support the FDIC's "Money Smart" financial education program and encourage its network of organizations to implement the curriculum in Asian communities. FDIC:PR-55-2002 5/22/02

• "Prime Bank" and Other Financial Instrument Fraud Schemes

  The FRB alerted financial institutions and the public to the continued proliferation of fraudulent schemes involving financial instruments. FRB Press Release
  5/21/02

• FDIC Lines Up Policy Leaders for June 4 Symposium on Enhancing Financial Transparency

  Lawrence B. Lindsey, Assistant to the President for Economic Policy; Sen. Jon Corzine, (D.-N.J.); Rep. Michael Oxley (R-OH), Chairman of the House Financial Services Committee; and Paul A. Volcker, former Chairman of the Federal Reserve Board, will share their perspectives on financial transparency at a one-day program sponsored by the Federal Deposit Insurance Corporation (FDIC) in Washington, D.C., on June 4, 2002. FDIC:PR-54-2002 5/21/02

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

  The agencies are issuing this advisory to clarify the appropriate risk-based capital treatment for banking organizations (institutions) that securitize credit card receivables and record an on-balance sheet asset commonly referred to as an Accrued Interest Receivable. OCC 2002-17, FDIC:FIL-48-2002, Interagency Advisory on AIR 5/20/02

• FRB Issues Proposal to revise Federal Reserve discount window programs

  The FRB requested public comment on a proposal to revise the Federal Reserve's discount window programs, which provide credit to help depository institutions meet temporary liquidity needs. Adoption of the proposal would not entail a change in the stance of monetary policy. The Federal Open Market Committee's target for the federal funds rate would not change as a result of this proposal and the level of market rates more generally would be unaffected. FRB Press Release 5/20/02

• 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. Electronic Interpretations and Actions 5/20/02

• OCC Transmits the FATF Terrorist Financing Guide

  As earlier reported on BOL, the Financial Action Task Force on Money Laundering has published Guidance for Financial Institutions in Detecting Terrorist Financing. OCC:AL 2002-4 5/20/02

• FTC Finally Issues Information Safeguards Rule

  The Federal Trade Commission has issued a final rule governing the safeguarding of customer records and information for the financial institutions subject to its jurisdiction. The Rule will be published in the Federal Register shortly. The Rule implements the safeguards provisions of the Gramm-Leach-Bliley Act (GLB Act). FTC Press Release , FTC Business Alert, FTC Final Rule 5/17/02

• FTC to Host Public Workshop on Consumer Information Security

  The FTC will host a two-day public workshop to explore issues related to the security of consumers' computers and the personal information stored in them or in company databases. FTC Press Release 5/17/02

• Regulators Issue Corrected Final Rule for Risk-Based Capital

  The final rule amended the Agencies' risk-based capital standards for banks, bank holding companies, and savings associations with regard to the risk weighting of claims on, and claims guaranteed by, qualifying securities firms. This document clarifies the effective date of the rule, corrects errors made in the Supplementary Information section and in the Board's Regulation Y, and makes technical changes to the footnote numbers in the instructions to and text of the FDIC's Part 325. 67FR34991 (text), 67FR34991 (pdf) 5/17/02

• OCC Issues Final Rule on Electronic Banking

  The OCC published a final rule that will facilitate the use of electronic technologies by national banks, consistent with safety and soundness. OCC:NR 2002- 44, 67FR34992 (text), 67FR34992 (pdf), OCC 2002-23 5/17/02

• Consumer's Guide to Direct Payment

  A new brochure available from the Federal Reserve Financial Services can help you answer questions a consumer may have about direct deposit. Consumer's Guide to Direct Deposit, Press Release 5/17/02

• FRB Publishes Written Agreement with Allied Irish Banks and Allfirst Financial

  The Federal Reserve Board, the Maryland Commissioner of Financial Regulation, and the Central Bank of Ireland jointly announced the execution of a Written Agreement by and among Allied Irish Banks, p.l.c., Dublin, Ireland, Allfirst Financial Inc., Baltimore, Maryland, and Allfirst Bank, Baltimore, Maryland. FRB Press Release 5/17/02

• FDIC Issues Alert on Information About Fraudulent Bonus Checks For Non-Existent Jobs

  On March 28, 2002, the FDIC issued an alert about individuals and banks being victimized by a scheme involving online job applications This is to inform you that the FDIC has received responses to that announcement indicating that more individuals and banks are being victimized by the same scheme, and that checks appearing to be drawn on at least one other bank also are being used. FDIC:FIL-47-2002 5/16/02

• OCC Issues Risk Management Guidance for Banks that Use Foreign-Based Third-Party Service Providers

  The guidance outlines risk management principles to facilitate sound use of foreign-based providers and to ensure that national banks manage these relationships in a safe and sound manner. It also addresses the need for a national bank to establish such relationships in a way that does not diminish the ability of the OCC to access, in a timely manner, data or information needed to effectively supervise the bank's operations. OCC:NR 2002- 43, OCC 2002-16 5/16/02

• OFAC List Changes

  OFAC has made a change but it simply consists of an update to its list of authorized service providers under the Cuban Assets Control Regulations. Another change updates "a.k.a." information that has been added to OFAC's SDN list for a number of SDGTs. BOL OFAC Page 5/16/02

• FDIC Publishes List of Ten Largest Thrift Companies

  The Ten Largest Thrift Companies highlights the performance of the largest thrift companies in the most recently completed quarter. The report is based on earning announcements and other publicly available information and generally is published within 45 days of the completion of a calendar quarter. 5/16/02

• NCUA Board Releases Strategic Plan 2003-2008 As the Agency Plans for the Future

  The plan builds on the foundation laid in NCUA Strategic Plan 2000-2005, which reflected a need to focus more on positioning NCUA as more forward-looking with a vision that is more responsive to the rapidly changing financial marketplace. NCUA Press Release 5/16/02

• OCC Releases CRA Evaluations For 25 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of April 15 through May 14, 2002. OCC:NR 2002-41 5/16/02

• OCC Announces 15 New Enforcement Actions and 1 Terminations

  The OCC announced 15 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 1 termination of an existing enforcement action. OCC:NR 2002-42 5/16/02

• FDIC Issues Interim Rule on Contractor Conflicts of Interest

  This rule establishes standards for independent contractors governing contracting prohibitions, conflicts of interest, ethical responsibilities, confidential information, and reportable information. 67FR34591 5/15/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-46 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-46-2002 5/15/02

• FDIC Issues Final Rule on Payment of Post-insolvency Interest In Receiverships With Surplus
  Funds

  The final rule establishes a single uniform interest rate, calculation method, and payment priority for post-insolvency interest.
  67FR34385 (text) 5/14/02

• IRS Warns of Fake W-8 BEN Forms & More

  The IRS has issued a warning regarding the use by identity thieves of bogus W-8BEN forms and totally fictitious W-888 and W-9095 forms to gain information from bank customers. The thieves send out correspondence that purports to be from a bank. Warnings had previously been issued by some of the bank regulators on the W-9095 form scam and some ficitious fraud questionnaires. IRS:IR-2002-55 5/10/02

• FRB and SEC Publish White Paper on Potential Structural Change in the Settlement of Government Securities
  

  The paper, to be published May 13 in the Federal Register, was developed with a goal of identifying issues and questions that need to be further explored. In releasing the paper, the staffs of the agencies emphasized they have not concluded that any of the approaches discussed represent an improvement over current arrangements or that structural change is necessary. FRB Press Release 5/10/02

• Anthrax Tested at the FRB

  Mail processed in a secure facility outside the Federal Reserve Board buildings has tested positive for traces of anthrax DNA. FRB Press Release

  • Mail Tests Positive for Anthrax DNA at Federal Reserve
  • FRB Press Release -- Fed tests positive for Anthrax
  • Fed mail shows anthrax

  5/10/02

• Comptroller Welcomes Growing Consensus that Fee Disparity Problem Must Be Fixed

  Basic flaws in the allocation of bank supervision costs are a threat to the independence of bank supervisors and to
  the dual banking system, Comptroller of the Currency John D. Hawke Jr. said. OCC:NR 2002-40 5/10/02

• OTS Adjusts Capital Requirements For 1-4 Family Mortgages

  The OTS announced that it is adjusting its capital requirements to bring them in line with the other federal banking agencies. Under a final rule, a one- to four-family residential first mortgage loan will qualify for 50 percent risk weight capital treatment if the loan is underwritten in accordance with prudent underwriting standards, including standards in the Interagency Guidelines for Real Estate Lending. 67FR31722 (text) 67FR31722 (pdf) OTS 02-26 5/10/02

• FFIEC 001 and FFIEC 006 Reporting Forms have been discontinued

  FFIEC 001 - Annual Report of Trust Assets | FFIEC 006 - Annual Report of International Fiduciary Activities 5/10/02

• Delay of Reg C Amendments Officially Published

  It's official. The FRB's final rule that postpones the effective date of the recent amendments to Regulation C (HMDA) from January 1, 2003, to January 1, 2004 has now been published in the Federal Register. (The FRB's informal notice of the delay was announced last week on BankersOnline.com.) 67FR30771 (text) 67FR30771 (pdf) 5/9/02

• OCC Issues Alert on Fictitious Bank Correspondence and Fraud Reporting Forms

  Some of your customers may be the unwitting subjects of another recently discovered fraud scheme that uses fictitious bank forms and fraudulent bank correspondence. The OCC has provided samples of fictitious documents (addressed to a bank customer) that purport to be from the fraud control department of the customer's bank. OCC:Alert 2002-6

  • Fictitious bank correspondence that purports to be from the customer's bank
  • Fictitious fraud questionnaire that purports to be from the customer's bank
  • Fictitious return envelope that purports to direct contents to a legitimate clearinghouse

  5/9/02

• Timothy W. Long Appointed Senior Deputy Comptroller for Mid-Size/Community Bank Supervision

  Comptroller of the Currency John D. Hawke, Jr. announced the appointment of Timothy W. Long as the agency's new Senior Deputy Comptroller for Mid-Size/Community Bank Supervision. In his new position, he will have responsibility for the supervision of the vast majority of national banks and oversee half the OCC workforce. OCC:NR 2002-39 5/9/02

• FDIC Enters into Removal and Prohibition Order and Civil Money Penalty Against an Illinois Banker

  The FDIC has issued a removal and prohibition order and imposed a civil money penalty of $25,000 against John C. Bollman, formerly of the Lena State Bank, Lena, Illinois. Mr. Bollman was the former President and Chairman of the Board of the bank. FDIC:PR-53-2002 5/9/02

• FDIC Reports First Quarter Net Income Rises Sharply, Sets Record at 25 Largest Banking Companies

  Amid signs of resurgence in the U.S. economy, earnings at the 25 largest banking companies grew significantly in the first quarter of 2002 - up $4.8 billion from the fourth quarter of 2001. Net income for the first quarter totaled $16.2 billion, surpassing the $15.8 billion mark set in the first quarter of 2000. FDIC:PR-52-2002 FYI 5/9/02

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

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published an issue of its "Warning Notice" (Issues No. 23, 24 and 25), which contain the names of entities recently brought to OSFI's attention through inquiries or complaints. FDIC:FIL-44-2002 5/9/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on Cambridge Bank, Lake Zurich, Illinois, are in circulation.
  FDIC:FIL-45-2002 5/9/02

• FDIC Issues FIL on Homeownership Counseling Notification Requirements

  The FDIC is advising banks that the VA/FHA Appropriations Act, signed into law on November 26, 2001, reinstates a requirement for creditors to notify delinquent mortgage borrowers of the availability of homeownership counseling. FDIC:FIL-43-2002 5/8/02

• FFIEC Updates Forms

  The FFIEC has updated the following forms: FFIEC 002, FFIEC 002s, FFIEC 019. 5/8/02

• FDIC Reports Year-End 2001 and First Quarter 2002 Financial Results for Its Insurance Funds

  The FDIC announced that the Bank Insurance Fund (BIF) reported a comprehensive loss (net loss plus current period unrealized gains/losses on available-for-sale securities) of $536 million for 2001, compared to income of $1.6 billion for the same period last year. FDIC:PR-51-2002 5/8/02

• FOMC Leaves Interest Rates Unchanged

  The FOMC decided to keep its target for the federal funds rate unchanged at 1 3/4 percent. Press Release 5/8/02

• OCC Alerts Banks of Colorado stolen birth and death certificates

  On April 9, the City and County of Denver Vital Records Office was robbed of over 2,300 sheets of preprinted security paper that can be used to create birth and death certificates. In addition, the electronic seal machine that produces an embossed seal of the City and County of Denver was stolen. OCC:Alert 2002-5 5/8/02

• IRS Warns of Scheme to Steal Identity and Financial Data

  The IRS warned of a fraudulent scheme currently circulating that uses fictitious bank correspondence and IRS forms in an attempt to trick taxpayers into disclosing their personal and banking data. The information fraudulently obtained is then used to steal the taxpayer's identity and bank account deposits. Release No: IR-2002-55 5/6/02

• FTC Submit Second Annual Report to Congress on the GLBA

  In accordance with the reporting provisions of the Gramm-Leach-Bliley Act, the Commission has submitted its second annual report to Congress on the number and disposition of enforcement actions taken pursuant to Section 521 of the Act. Since submission of the first report, the FTC has filed complaints against three defendants allegedly engaged in, or soliciting others to engage in, "pretexting" - obtaining a consumer's financial information from financial institutions under false pretenses. FTC Release 5/6/02

• Matz Urges Credit Unions to Look to the Future

  NCUA Board Member Deborah Matz urged the Government Affairs Conference of the Michigan Credit Union League to be prepared. Meeting with the Michigan League is part of Matz’ national tour to familiarize herself with the needs of credit unions and learn how NCUA can further serve in the credit union spirit of people helping people. NCUA Press Release 5/6/02

• FRB Postpones Effective Date for Recent Reg C Amendments BIG NEWS!

  The FRB approved a final rule that postpones the effective date of the recent amendments to Regulation C (Home Mortgage Disclosure Act) from January 1, 2003, to January 1, 2004. The FRB is, however, adopting an interim amendment to Regulation C, effective January 1, 2003, mandating the use of 2000 census data in HMDA reporting. FRB Press Release, Notice 67FR30771 (text) 5/3/02

• Treasury Publishes USA PATRIOT Act Report to Congress

  The Treasury Department has published a number of reports to Congress that it was required to make under Sections 357 and 361 of the USA PATRIOT Act. 5/3/02

• FATF Releases Terrorist Financing Guide

  The Financial Action Task Force on Money Laundering has published Guidance for Financial Institutions in Detecting Terrorist Financing. 5/3/02

• FedACH System Quality and Volume Statistics Published

  The Federal Reserve Financial Services published a chart that provides performance measures for FedACHSM for 2002 (through first quarter). 5/3/02

• FDIC Report Risks in Banks' Underwriting Practices, Loan Portfolios and Loan Administration Continue to Increase Slightly

  FDIC examiners continue to report slight increases in risks in FDIC-supervised banks' underwriting practices, loan portfolios and in the way loans are administered, according to the agency's latest Report on Underwriting Practices, which covers the six months ending March 31, 2002. FDIC:PR-49-2002 5/3/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on the Foster Bank, Chicago, Illinois, are in circulation. FDIC:FIL-42-2002 5/3/02

• FDIC Issues Alert on Stolen Birth Certificate and Death Certificate Forms

  The FBI has asked the FDIC to alert all FDIC-supervised banks to the theft of official documents from the Denver County (Colorado) Vital Statistics Office on April 9, 2002. FDIC:FIL-41-2002 5/3/02

• BOL Adds Special PATRIOT Act Section

  BankersOnline has added a new section to the site to bring together articles, resources, tools and links on matters relating to the USA PATRIOT Act, anti-terrorism, anti-money laundering, customer identification, OFAC, Control list issues, and similar subjects. NEW PATRIOT/AML Section 5/2/02

• FDIC Posts Notice of Agency Meeting

  The FDIC Board of Directors will meet in open session on May 7, 2002. Notice 5/2/02

• Forms Used by the FDIC

  Forms and instructions used in connection with applications, reports, and other submittals used by the FDIC. 5/2/02

• FDIC Seeks Comment on Information Quality Guidelines

  The FDIC is requesting comment on in its Information Quality Guidelines, which relate to ensuring and maximizing the quality, objectivity, utility, and integrity of information disseminated to the public by the FDIC. Electronic Public Comment 5/2/02

• FIL about OFAC Change

  The FDIC has published FIL-40 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-40-2002 5/1/02

• OTS Signs Information Sharing Pact With Oregon Insurance Regulator

  Oregon became the 45th state during the last two years to sign an information sharing agreement between state insurance regulators and the OTS, and the National Association of Insurance Commissioners (NAIC) announced. OTS 02-24 5/1/02

• OTS Releases March Enforcement Statistics

  The OTS reported that it issued six enforcement orders to three individuals and three institutions during March 2002. OTS also terminated two orders previously issued to two institutions. OTS 02-25 5/1/02

In remarks at the Bipartisan Policy Center, Secretary of the Treasury Lew stated "this can and should be a breakthrough year for our economy." He noted it is imperative that Congress move right away to increase the government's borrowing authority. He commented that progress in Washington around the budget and the farm bill can mark the beginning of a productive period of bipartisan action.

The NCUA has released an updated Your Insured Funds booklet, which provides consumers and credit unions with the latest share insurance coverage information in a new, easy-to-read format.

The Federal Reserve Board's December 2013 revisions to its March 25, 2011 [76 FR 16862] proposed rule that would amend Regulation CC has finally been published in today's Federal Register [79 FR 6673]. The current proposed revisions would affect only subsections C (Collection of Checks) and D (Substitute Checks) of the regulation, to encourage depositary banks to receive and paying banks to send returned checks electronically. The proposal includes two alternative approaches to that goal. The Board is also requesting comment on applying Regulation CC's existing check warranties to checks that are collected electronically and on new warranties and indemnities related to checks collected electronically and to electronically-created items. The Board has asked for comments on the current revised proposal by May 2, 2014. The current proposal does not affect the part of the 2011 proposal addressing funds availability and disclosures (subpart A), which now requires the concurrence of the CFPB before a final rule can be issued. The involvement of the CFPB is not required for amendments to subparts C and D of the regulation.

The Fed has released the January 2014 Senior Loan Officer Opinion Survey (SLOOS) on Bank Lending Practices.

An article on the CFPB Blog discusses some of the responses received from private student loan borrowers regarding their experiences and problems.

Janet L. Yellen has taken the oath of office as Chair of the Board of Governors of the Federal Reserve System.

The Federal Reserve Board's December 2013 revisions to its March 25, 2011 [76 FR 16862] proposed rule that would amend Regulation CC has finally been published in today's Federal Register [79 FR 6673]. The current proposed revisions would affect only subsections C (Collection of Checks) and D (Substitute Checks) of the regulation, to encourage depositary banks to receive and paying banks to send returned checks electronically. The proposal includes two alternative approaches to that goal. The Board is also requesting comment on applying Regulation CC's existing check warranties to checks that are collected electronically and on new warranties and indemnities related to checks collected electronically and to electronically-created items. The Board has asked for comments on the current revised proposal by May 2, 2014. The current proposal does not affect the part of the 2011 proposal addressing funds availability and disclosures (subpart A), which now requires the concurrence of the CFPB before a final rule can be issued. The involvement of the CFPB is not required for amendments to subparts C and D of the regulation.

The Fed has released the January 2014 Senior Loan Officer Opinion Survey (SLOOS) on Bank Lending Practices.

An article on the CFPB Blog discusses some of the responses received from private student loan borrowers regarding their experiences and problems.