January 29, 2020

By John Witkowski, President & CEO

IBANYS' New York City Compliance Program A Hit
Yesterday,  IBANYS and the New York League of Independent Bankers (NYLIB) hosted our first-ever New York City Compliance Conference. Special thanks to our friends at the Pryor Cashman law firm for hosting the program in their Manhattan office. IBANYS is excited to expand our presence in downstate areas, and deligheted by the strong attendance from community banks throughout New York City, Long Island and the northern suburbs. 

PLEASE NOTE: The Bank Directors Conference scheduled for February 4 at Pryor Cashman LLP located at 7 Times Square, has been postposted.   We hope to confirm at date in mid-April.   More information will be available and distributed within the next week.

Topics discussed at yesterday's New York City Compliance Conference included 2019 federal and state regulatory reviews and 2020 expectations; BSA/AML; building effective compliance cultures; enforcement actions, and the latest on cyber security challenges. We'll be hosting similar regional compliance conferences in Rochester and Poughkeepsie in early March.

The following speakers shared their knowledge and expertise:
  • Frank Hughes, FDIC New York Regional Director; 
  • Tom Clayton, OCC Senior Compliance Examiner;
  • Yolanda Ford, Deputy Superintendent for the Community and Regional Bank Division of the New York State Department of Financial Services;
  • Brian MontgomeryDFS Deputy Superintendent for Consumer Examinations; 
  • Jeffrey Alberts, Partner, Pryor Cashman, LLP and chair of the firm's Financial Institutions Group;
  • Justin Muscolino, head of North American Compliance Training with GRC Solutions, and
  • Ryan Spelman, senior manager at Kroll CyberClarity 360, a division of Duff & Phelps. 

The program concluded with a panel discussion with all of the participating federal and state regulators.  



  • Take a moment to review our 2020 IBANYS Meetings Calendar below, 
    including the printable attachment. Mark your calendars, share it with your colleagues, and plan to join us for these important educational and networking sessions. 
  • I also encourage you to review our Webinar schedule, which offers a wide array of programs designed for community banks and their officers, directors and employees.

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Regulators panel discussion at New York City Compliance Conference

IBANYS' First 2020 A Success:
NYC Compliance Conference Featured Strong Program, Attendence
IBANYS' first program of 2020 was a rousing success, as this week's Compliance Conference in New York City -- hosted with the New York League of Independent Banks, and held in the offices of the Pryor Cashman law firm -- featured strong attendence and an outstanding group of speakers including:

  • Frank Hughes, FDIC New York Regional Director; 
  • Tom Clayton, OCC Senior Compliance Examiner;
  • Yolanda Ford, Deputy Superintendent for the Community and Regional Bank Division of the New York State Department of Financial Services;
  • Brian MontgomeryDFS Deputy Superintendent for Consumer Examinations; 
  • Jeffrey Alberts, Partner, Pryor Cashman, LLP and chair of the firm's Financial Institutions Group;
  • Justin Muscolino, head of North American Compliance Training with GRC Solutions, and
  • Ryan Spelman, senior manager at Kroll CyberClarity 360, a division of Duff & Phelps. 
The program concluded with a panel discussion with all of the participating federal and state regulators.  

Mark Your Calendars For These Upcoming 2020 IBANYS Conferences: 

Click here for IBANYS -   2020 Meeting Dates & Locations   (printable version)

IBANYS' 2020 Meetings Calendar is now available (see printable document above)
. . . Please note we are introducing new meeting locations in New York City. We encourage all New York community bankers and IBANYS associate members, preferred providers, potential vendors, sponsors & exhibitors to print it out, share it with your colleagues and "save the date." 

Detailed agendas and registration information is attached for March 3 & 4 Compliance Conference and April 7 & 8 for the Directors Conference coming soon.  

Compliance Conference
March 3, 2020                         March 4, 2020
DoubleTree by Hilton              Poughkeepsie Grand Hotel
1111 Jefferson Road               40 Civic Center Plaza
Rochester, NY 14623             Poughkeepsie, NY 12601
585-475-1510                         845-485-5300
Directors Conference
February 4, 2020  Postponed         April 7, 2020                           April 8, 2020
Pryor Cashman                       RIT Inn & Conf. Center           Poughkeepsie Grand Hotel
7 Times Square, 40 th Fl.         5257 West Henrietta Rd.        40 Civic Center Plaza
New York, NY 10036               Henrietta, NY 14467               Poughkeepsie, NY 12601
212-421-4100                          585-359-7746                          845-485-5300
  • Have an idea for one of our meetings? Want to see a meeting or forum on a different subject? We want to hear from you! 
    Contact Linda Gregware or 
  • John Witkowski with your thoughts and/or comments
IBANYS Education/WebinarsWebinars

The Independent Bankers Association of New York State (IBANYS) partners with CBWN to bring you more than 150 webinars each year covering compliance, lending, regulations, security, operations, new accounts, collections, fraud, security and other topics. Not only that, but every time you purchase a webinar, you support IBANYS, because a portion of your registration comes directly to us. Thank you!  

You can view the 2020 Webinar Schedule here or by category here. In addition, CBWN has made some recent updates to provide better service to its consumers. Unfortunately, some changes may have caused you to miss important webinar announcements.

CBWN and IBANYS thank you for your continued support of the education in the community banking industry. 

Purchase Webinars Individually or Purchase the Series to Save 10%!

View or Purchase the Webinar

Stay-up-to-date with our webinar features by following us on Facebook, Twitter, Instagram, and LinkedIn! You can also follow the hashtag #WebinarWednesday on Instagram/Twitter!

Government Relations

To read the Governor's full "Budget Book" Please click on the link below.

DFS Extends LIBOR Deadline 
Until March 23, 2020
IBANYS recently met with the New York State Departrment of Financial Services (DFS) to request an extension of the deadline for LIBOR transition risk management plans. We are pleased to inform you that on January 23, Superintendent Linda Lacewell issued the following statement:  "Today at the request of numerous DFS regulated entities, the Department is extending the deadline for LIBOR transition risk management plans by 45 days. The Department expects all institutions to submit complete and comprehensive plans by the revised submission date of March 23, 2020. This is the final deadline."

For a copy of the Superintendent's letter, please visit the DFS website at www.dfs.ny.gov

Recent Legislative Activity

The State Senate this week considered a package of bills intended to strengthen regulations and penalties for payroll companies. The legislation would create criminal penalties for intentional misappropriating payroll and tax funds, hold a company liable when an employee wrongfully misses a paycheck, and clarify wage theft guidelines. Legislators also want the NYS Department Financial Services to review regulations guiding payroll firms.

Both the State Senate and Assembly approved A.8977 (Lupardo)/S.6968 (Metzger). The legislation involves the growth, sale, distribution, transportation, and processing of hemp, and specifically the regulation of cannabinoid hemp and hemp extract products. Governor Cuomo signed the bill as Chapter 1 of the Laws of 2020.  

A.9140 (Abinanti)/S.4188 (Kennedy) 
would require financial institutions to notify a customer before charging a fee based on account inactivity.

S.7104 (Mayer) 
would establish a set 90-day grace period for the use of credit card reward points when an account is modified, cancelled, closed or terminated.

A.8686 (Kim)/S.6792 (Salazar) 
would establish the "empire state inclusive value ledger establishment and administration act" to create a master account and system of individual wallets to make and receive payments to state entities and residents of the state. The legislation was referred to Assembly Banks and Senate Finance Committees.

A.4618 (Wright)/S.2106A (Sanders) 
would require banks to disclose negative consequences on  credit scores due to alternative loan payment schedule

A.6070 (Seawright)/S.2397 (Comrie) 
would direct the State Department of Financial Services and the Department of State's Consumer Protection  Division to conduct a study on consumer awareness and financial education  and make recommendations.

A.1935 (Zebrowski)/S.4188 (Kennedy) 
would require financial institutions to notify customers prior to charging them a  fee based on account inactivity .

A.9141 (Abinanti)/S.1589 (Sanders)
would establish the state financial literacy commission to measurably improve the financial literacy and financial capability of New York state residents.  
Washington, D.C.WashingtonGR

Join IBANYS In Washington At ICBA's 2020 Capital Summit
New York community bankers:  IBANYS needs your voice in Washington, D.C. for the 2020
ICBA Capital Summit April 28 - May 1 at the Renaissance Washington DC Downtown Hotel. Join community bankers from across the country as we advocate to modernize the Bank Secrecy Act, establish cannabis-banking safe harbor legislation, close the industrial loan company loophole and urge policymakers to "Wake Up" to the risky practices, costly tax subsidies, and lax oversight of the nation's credit unions. We will 
meet "on the hill" with members of our New York Congressional DelegationCommunity banks are driving issues impacting our industry, such as real-time payments, deposit insurance assessment credits, cannabis banking, and Bank Secrecy Act reform.

To register, visit  click here https://www.icba.org/events/icba-capital-summit .

ICBA Statement On NCUA Allowing Big Credit Unions
To Issue Subordinated Debt
"ICBA and the nation's community banks strongly oppose today's National Credit Union Administration proposed rule to allow the largest and most complex tax-exempt credit unions to issue subordinated debt as an alternative form of capital, and we urge the agency to withdraw its plan. This proposal is yet another example of the NCUA pushing the envelope and expanding credit union powers well beyond limits justifying the industry's tax exemption. . ." To read the full statement by ICBA, click here.

House Back In Session: Hearings On Tap
The House is back in session this week, and the House Financial Services Committee met today on the OCC's proposed Community Reinvestment Act reforms, with Comptroller of the Currency Joseph Otting scheduled to testify. Tomorrow, the Committee's Task Force on Financial Technology will hold a hearing on the rise of mobile payments.  To view the full schedule of Financial Services Committee hearings:

ICBA To Senate: Make Cannabis Debate About Providing A 
Federal Safe Harbor For Banks
An article in the  "American Banker" reported ICBA urged Congress to focus the cannabis-related debate on establishing a federal safe harbor for banks that serve cannabis-related businesses. ICBA is emphasizing the public safety and compliance benefits of the safe harbor. Responding  to Senate Banking Committee Chairman Mike Crapo's (R-ID)  request for feedback on the bipartisan SAFE Banking Act (H.R.1595/S.1200) passed by the House last fall, ICBA called  the bill a narrowly crafted solution to a growing problem. Chairman Crapo has said he does not support the House version of the bill and expressed concerns about money laundering and cannabis marketing and research.

Op-Ed: Credit Unions Stray From Mission To Pursue Growth
In an op-ed, ICBA President & CEO Rebeca Romero Rainey stated that policymakers in Congress and at the regulatory agencies are right to raise concerns over tax-exempt credit union acquisitions of tax-paying community banks. She noted credit unions are exploiting their tax exemption, unlevel playing field, and lax oversight to stray from their mission to pursue unbridled growth. "Unfortunately for the people of modest means that credit unions were established by Congress to serve, no one appears to be benefitting more from the tax exemption than credit unions themselves," Romero Rainey wrote. To read the full op-ed, click here: https://www.icba.org/news/news-details-results/2020/01/28/op-ed-policymakers-right-to-question-credit-union-acquisitions

FDIC Sends Financial Institution Letter To Agricultural Lenders
The FDIC has issued a Financial Institution Letter reminding agricultural lenders to maintain sound underwriting standards, strong credit administration practices, effective risk management strategies, and appropriate allowances for losses and capital levels through the credit cycle. The FDIC cited challenges to the U.S. agricultural industry of recent years and encouraged financial institutions to work constructively with borrowers when they experience financial difficulties.
ICBA Action Alerts & Grassroot EffortsICBA

Support ICBA Action Alerts Regarding Credit Unions
  • IBANYS urges New York community bankers to support ICBA's "action alerts" -- including those involving credit unions, closing the ILC loophole and more. Make your voice heard in Washington. Use ICBA's "Be Heard"grassroots action center at www.icba.org
Visit www.icba.org and click on the advocacy tab. 
Banking Industry NewsBankingNews
Send IBANYS your bank's recent news, activities and updates so we can share them with your industry peers. Email Steve Rice at Stever@ibanys.net.
IBANYS Preferred PartnersPreferred
For more information on IBANYS Preferred Partners - click here: https://ibanys.net/preferred-partners/
  • Pentegra Retirement Services
  • Luse Gorman, PC
  • Freed Maxick CPAs
  • T.Gschwender & Associates, Inc.
  • Promontory Interfinancial Network
  • Travelers
  • ICBA
IBANYS Spotlight Is On...spotlight

The  SHAZAM network is a member-owned electronic funds transfer (EFT) network providing choice and flexibility to community financial institutions across the US since 1976. SHAZAM is a single source provider for the following services: debit card, core, fraud, ATM, marketing and more. Call  Steve   Heston, EVP, Chief Sales & Marketing Officer at (515) 558-7632, or email: shestone@shazam.net. V isit SHAZAM.net;  follow   @SHAZAMNETWORK
Did You Know?

. . . That when IBANYS was established in 1974, New York State had 39 congressional districts, held by 25 Democrats, and 14 Republicans, and our two U.S. Senators were Republican Jacob Javitz and Conservative James Buckley? 

Today, we have 27 congressional districts -- 21 Democrats, 5 Republicans, with one vacancy due to the resignation of Republican Chris Collins resigned -- and two Democratic U.S. Senators, Democrats Chuck Schumer and Kirsten Gillibrand.

New York community banks play a key role in our state and local economies. Help spread the good news among our customers, business, elected leaders and the media!

John J. Witkowski
President & Chief Executive Officer

Stephen W. Rice
Director of Government Relations & Communications

Linda Gregware
Director of Administration & Membership Services

William Y. Crowell III
Legislative Counsel