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Product Updates August 2019

Product Updates for August 2019

The Product Updates for August 2019 from BankPolicies.com feature the following revised policy template products:

Bank Secrecy Act Policy Template – Comprehensive Version
Electronic Mail (E-Mail) Policy Template
Fair Credit Reporting Act Policy Template
Identity Theft Program Policy Template
Internet Banking Policy Template

The update to these products is in response to FinCEN’s Advisory FIN-2019-A005 entitled “Updated Advisory on Email Compromise Fraud Schemes Targeting Vulnerable Business Processes” dated 07/16/19 that announced new efforts to curtail and impede Business Email Compromise (BEC) scammers and other criminals who profit from their schemes.  FinCEN also issued an update to its “Advisory to Financial Institutions on E-mail Compromise Fraud Schemes,” first published in 2016.  The new advisory offers updated operational definitions, provides information on the targeting of non-business entities and data by email compromise schemes, highlights general trends in BEC schemes targeting sectors and jurisdictions, and alerts financial institutions to risks associated with the targeting of vulnerable business processes.  In addition, FinCEN issued an in-depth Financial Trend Analysis of BSA data that explores industries targeted and methodologies used by BEC scammers.

In addition, the update is in response to the Federal Reserve’s July 15 FED360° newsletter which includes an article, “Gone Phishing – Tips to Help Protect Your Organization from Phishing Attempts” dated 07/15/19. Phishing is used by threat actors in attempts to acquire sensitive information using a fraudulent solicitation, via e-mail or on a website (or through text messages) in which the fraudster poses as a legitimate business or reputable person. The article offers tips to help protect banks and other organizations from phishing attempts.

As a reminder, the completed contents of the Identity Theft Program Policy Template are included within the Fair Credit Reporting Act Policy Template as topic 10.


Bank Security Program Policy Template
Elder Abuse and Larcenies Against Customers Policy Templates

The update to these products is in response to the CFPB’s press release entitled “Consumer Financial Protection Bureau Recommends Financial Institutions Report Suspected Financial Exploitation of Older Adults” dated 07/17/19 that issued an updated advisory to financial institutions urging them to report to the appropriate local, state and federal authorities whenever they suspect that an older adult is the target or victim of financial exploitation. The CFPB also recommended that financial institutions file Suspicious Activity Reports (SARs) with the federal government when they suspect elder financial exploitation (EFE). The updated advisory builds on the CFPB’s earlier recommendations and its recent research on elder financial abuse. It contains voluntary best practices to help financial institutions prevent and respond to EFE.

As a reminder, the completed contents of the Elder Abuse and Larcenies Against Customers Policy Templates are included within the Bank Security Program Policy Template as topic 12.


Fraud Policy Template

The update to this product is in response to OCC Bulletin 2019-37 entitled “Fraud Risk Management Principles” dated 07/24/19 that provides banks with sound fraud risk management principles, and supplements other federal regulatory issuances on corporate and risk governance.


Investment Policy Template

The update to this product is in response to the Joint Press Release entitled “Agencies Adopt Final Rule to Exclude Community Banks from the Volcker Rule” dated 07/09/19 that announced a final rule to exclude community banks from the Volcker Rule, consistent with the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).

The Volcker Rule generally restricts banking entities from engaging in proprietary trading and from owning, sponsoring, or having certain relationships with hedge funds or private equity funds. Under the final rule, which is unchanged from the proposal, community banks with $10 billion or less in total consolidated assets and total trading assets and liabilities of 5 percent or less of total consolidated assets are excluded from the Volcker Rule.

The final rule also permits a hedge fund or private equity fund, under certain circumstances, to share the same name or a variation of the same name with an investment adviser as long as the adviser is not an insured depository institution, a company that controls an insured depository institution, or a bank holding company.


Regulation CC Policy Template
Regulation DD Policy Template

The update to these products is in response to the Joint Press Release entitled “Agencies Issue Final Amendments to Regulation CC Regarding Funds Availability” dated 06/24/19 that announced amendments to Regulation CC that implement a statutory requirement to adjust for inflation the amount of funds depository institutions must make available to their customers. The amendments apply in circumstances ranging from next business day withdrawal of certain check deposits to setting the threshold amount for determining whether an account has been repeatedly withdrawn. In addition, the CFPB announced a technical, non-substantive amendment to its Regulation DD, 12 CFR part 1030, to add a new paragraph (e) to § 1030.1 that would cross-reference the CFPB’s joint authority with the Federal Reserve Board to issue regulations under certain provisions of the EFA Act that are codified within Regulation CC.

Regulation CC implements the Expedited Funds Availability Act of 1987 (EFA Act). The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amended the EFA Act to grant the Bureau and the Board joint rulemaking authority for funds-availability schedules, disclosure policies, payment of interest, and other EFA Act provisions implemented by Regulation CC.

The Dodd-Frank Act amendments require that the EFA Act’s dollar amounts be inflation adjusted every five years by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

The first set of adjustments are detailed in the Federal Register notice. To help ensure that institutions have sufficient time to implement the adjustments, the compliance date for the adjusted amounts is July 1, 2020.

The agencies are also implementing in Regulation CC the EFA Act amendments made by the Economic Growth, Regulatory Relief, and Consumer Protection Act, which include extending coverage of the EFA Act to American Samoa, the Commonwealth of the Northern Mariana Islands, and Guam.


Keeping You Informed

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