New and Revised Policy Templates for April 2016
Regulation A Policy Template – NEW!
This new product was developed in response to client requests to create a policy for Regulation A (Extensions of Credit by Federal Reserve Banks) that establishes rules under which a Federal Reserve Bank may extend credit to a bank and other depository institutions.
This product was revised in response to FinCEN’s FIN-2016-G001 entitled “Guidance on Existing AML Program Rule Compliance Obligations for MSB Principals with Respect to Agent Monitoring” dated 03/11/16 that reiterates the anti-money laundering (AML) program obligations on the principals of money services businesses (MSBs) to understand and appropriately account for the risks associated with their agents, as broadly set forth by FinCEN in 2004 guidance primarily focused on foreign agents and counterparties.
This product was revised in response to the Joint Release entitled “Interagency Advisory on Use of Evaluations in Real Estate-Related Financial Transactions” dated 03/04/16 that clarifies supervisory expectations for using an evaluation for certain real estate-related transactions in response to questions raised during outreach meetings held pursuant to the Economic Growth and Regulatory Paperwork Reduction Act. Many of the questions pertained to when an evaluation is permitted for a real estate-related transaction and how an evaluation can support a market value conclusion when there are few or no recent comparable sales of similar properties.
These products were revised in response to the CFPB Advisory entitled “Advisory for Financial Institutions on Preventing and Responding to Elder Financial Exploitation” dated 03/24/16 that provides broad recommendations for banks and credit unions to help them prevent and respond quickly to elder financial exploitation. The CFPB has identified the benchmarks provided in this advisory to help financial institutions assess and strengthen their current practices for preventing, detecting, and responding to the financial exploitation of older people.
As a reminder, the complete contents of the Elder Abuse and Larcenies Against Customers Policy Template are included in the Bank Security Program Policy Template as Topic 12.
These products were revised in response to the Joint Release entitled “Interagency Guidance to Issuing Banks on Applying Customer Identification Program Requirements to Holders of Prepaid Cards” dated 03/21/16 that issued guidance clarifying that a bank’s Customer Identification Program (CIP) should apply to the holders of certain prepaid cards issued by the institution as well as holders of such prepaid cards purchased under arrangements with third party program managers that sell, distribute, promote, or market the prepaid cards on the bank’s behalf. The guidance describes when, in accordance with the CIP rule, the bank should obtain information sufficient to reasonably verify the identity of the cardholder, including at a minimum, obtaining the name, date of birth, address, and identification number, such as the Taxpayer Identification Number of the cardholder.
These products were revised in response to the OCC’s Community Developments Insights publication for February 2016 that explores the commercial lending environment in Indian Country, including the relationship between the commercial lending business and Native American governmental, legal, and institutional structures.
These products were revised in response to the OCC’s Bulletin 2016-3 dated 02/12/16 that announced a revised Installment Lending Booklet. The revised booklet statutes and regulations, guidance, and examination procedures, and provides updated guidance on assessing and managing the risks associated with installment lending activities.
This product was revised in response to the CFPB’s Announcement dated 03/22/16 that issued an interim final rule that broadens the availability of certain special provisions for small creditors that operate in rural or underserved areas. The new rule, which takes effect March 31, 2016, implements Congress’s recent legislation, the Helping Expand Lending Practices in Rural Communities (HELP) Act, that allowed more small creditors operating in rural or underserved areas to take advantage of these provisions.
This product was revised in response to the FDIC’s FIL-14-2016 entitled “Discontinue of Foreclosure Proceedings” dated 03/02/16 that clarifies supervisory expectations in existing guidance for institutions’ risk-management practices for decisions to discontinue foreclosure proceedings after initiating such actions, which are commonly referred to as abandoned foreclosures. Institutions should have appropriate policies and practices pertaining to decisions to discontinue foreclosure actions.