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ComplySight: FREE Recorded Webinars
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Recorded Webinars - Watch on Demand!
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InfoSight Highlight: Bank Secrecy Act
The Bank Secrecy Act (BSA), also known as The Financial Recordkeeping and Reporting of Currency and Foreign Transactions Act of 1970, was enacted to help in the investigations of money laundering, tax evasion and other criminal activity.
There are many laws and regulations that make up BSA. Among them are the Money Laundering Control Act of 1986; the Anti-Drug Abuse Act of 1986; the Currency and Foreign Transactions Reporting Act; and the Financial Recordkeeping and the Department of Treasury's Reporting of Currency and Foreign Transactions rules. The most recent law impacting BSA is Title III of the USA Patriot Act, passed in 2001.
On the Bank Secrecy Act Channel are 19 different topics, including Money Services Businesses and Virtual Currency.
Be sure you are kept up-to-date with the information in the Bank Secrecy Act channel today!
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Reporting HMDA race/ethnicity when the borrower is a business
Now that business lenders are required to report HMDA data for business loans that are secured by a dwelling (
read more about this in a previous CompBlog post
), many such lenders may be faced with the situation where the borrower is a business entity, such as a corporation or LLC. Here at CUNA Compliance we have received several questions from member credit unions about how to report the ethnicity and race government monitoring information required under HMDA when the borrower is in fact a business rather than an individual.
In this situation, you would report "NA" (for "Not Applicable") on both data points since the borrower is a business entity and therefore cannot have a race or ethnicity. This is also true even if you know the race and ethnicity of the owner of the business or the guarantor of the loan; you do not report the race and ethnicity on these persons. The business is the borrower, thus you report Not Applicable. Please continue to reach out to CUNA Compliance with all your HMDA-related inquiries!
Source CUNA
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Is your credit union ready for the Remote Deposit Capture indemnity provision of the Reg CC final rule?
The 2017 Regulation CC final rule becomes effective on July 1 this year.
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 proposed indemnity would be provided by a credit union that accepted a check via 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 added an exception to the indemnity, and associated commentary, 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." The federal Reserve Board believed that providing this exception could reduce accidental double deposits and could provide incentives for financial institutions that receive remote deposit capture deposits to take steps to minimize intentionally fraudulent deposits.
Something to consider: If your credit union accepts checks via remote deposit capture, you may want add language to your Remote Deposit Capture Agreement (if the language isn't already there) that requires your member to add a restrictive indorsement to the check such as "For Mobile Deposit Only," or similar indorsement. Such an indorsement may help reduce risk to your credit union.
Source: CUNA Compliance Blog
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