League InfoSight CEO Glory LeDu has created the following video to remind you of changes in the 2nd Quarter and to let you know what's ahead in the 3rd Quarter of 2018 . Additionally,  here is a more detailed review of the requirements for FinCEN Customer Due Diligence that was effective in May, 2018 . You will want to review this content to be sure you are in compliance!

 

Just a reminder that Compliance videos since 2016 can be found on YouTube at the Compliance Connection channel , where they are generally updated quarterly.

The final rule creates a new Remote Deposit Capture Indemnity in Section 229.34(f) to address the allocation of liability when a depositary institution, such as a credit union accepts deposit of a check through "remote deposit capture." In other words, when the depositor/ member sends the credit union electronic information about a check, such as a photographic image, which the credit union uses to create an electronic check or substitute check for collection. The indemnity would be provided by a credit union that accepted a check by remote deposit capture to a financial institution that accepted the original check for deposit, in the event the financial institution that accepted the original check incurred a loss because the check had already been paid. The final rule also added an exception to the indemnity which would prevent a bank from making an indemnity claim if it accepted the original check containing a restrictive indorsement inconsistent with the means of deposit, such as "for mobile deposit only."

 

Some check vendors are now printing checks with a checkbox on the back which states, "check here if Mobile Deposit," but there has been some question as to whether simply checking that box fulfills the restrictive endorsement requirements.

 

Further Action If your credit union accepts checks by remote deposit capture, you may want to review the language in your Mobile check deposit agreement or Remote Deposit Capture Agreement (if the language isn't already there) that requires the credit union's member to add a specific restrictive indorsement to the check such as "For Mobile Deposit Only, at ABC FCU into account #123456789" and also require the new check box which identifies the check as "For Mobile Deposit" to be checked.

   

The exclusion generally applies to finance charges under Reg. Z such as cash advance fees, foreign transaction fees, balance transfer fees, transaction fees for purchases and minimum interest charges. Other charges, which are not finance charges under Reg. Z, such as a late fee or an over-limit fee are not included in the calculation of the MAPR anyway, so the exclusion would not apply to such fees. Also, the exclusion does not apply to fees or premiums for credit insurance, fees for a debt cancellation contract, fees for a debt suspension agreement, or to fees for a credit related ancillary product. Those fees must be included in the calculation of the MAPR.