Compliance - Page 2

S.2155 and Community Banks

A much needed reprieve – but with conditions.

By Don Andrews

America is like no other country. Rooting for the underdog is an American pastime, and there is a sensibility that people who are honest and work hard should reap the benefit of their efforts. Even bankruptcy laws were designed with the idea of giving people a second chance rather than sending them to debtor’s prison. Second chance and opportunity permeate our culture and our common law. In S.2155 — the Economic Growth, Regulatory Relief and Consumer Protection Act — community banks were given that second chance.


What Is GDPR?

How financial institutions are affected by the EU’s General Data Protection Regulation.

By Keith Monson

While community banks specialize in serving their local community, the reach of global regulations can still have a significant impact on a bank’s business plan.

The European Union’s General Data Protection Regulation took effect on May 25, and although it isn’t a U.S.-based regulation, it is important for banks to understand how the scope of GDPR will change usual business functionality. The law will be one of the more significant regulations to hit financial institutions in quite some time, bringing changes for them as well as all other businesses — and their customers.


A “No Data Entry” Way to Comply with Customer ID Regulations

By Thomas Curley, Sageworks

May 16 — The Customer Identification Program rule, or CIP, implements section 326 of the USA Patriot Act, which requires banks, savings associations, credit unions and certain non-federally regulated banks to have reasonable belief that they know the true identity of each customer. These laws were established with a goal of preventing money-laundering and terrorist activities. On May 11, the Financial Crimes Enforcement Network (FinCEN) reminded financial institutions that the final rule, “Customer Due Diligence Requirements for Financial Institutions” officially became effective. Financial institutions, more than ever, are being watched and held to these higher standards as technology has made illicit activities more common.


Four Steps to Implementing CECL

By John Voigt

The Financial Accounting Standards Board’s new Current Expected Credit Loss standard brings a significant change to credit loss accounting in the United States, and the road to compliance presents many challenges for financial institutions. While today’s allowance process is commonly operated within a Microsoft Excel-based framework, the additional complexity of the CECL standard will strain this type of approach and make it difficult to maintain the required transparency and controls from quarter to quarter.


The New ‘Beneficial Ownership’ Rule

FinCEN-mandated changes take effect in May.

By Valerie Baxendale

The May 11 compliance deadline with the new Financial Crimes Enforcement Network Customer Due Diligence rule is fast approaching. This new rule adds yet another obligation for banks to know just who their actual customer is, including determining who really owns limited liability companies and other common forms of business entities.


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