Product Updates for August 2024
The Product Updates for August 2024 from BankPolicies.com feature the following revised policy and form template products:
The update to this product is in response to the Joint Release entitled “Agencies Finalize Interagency Guidance on Reconsiderations of Value for Residential Real Estate Valuations” dated 07/18/24 that announced final guidance addressing reconsiderations of value (ROVs) for residential real estate transactions. The guidance advises on policies and procedures that financial institutions may implement to allow consumers to provide financial institutions with information that may not have been considered during an appraisal or if deficiencies are identified in the original appraisal.
ROVs are requests from a financial institution to an appraiser or other preparer of a valuation report to reassess the value of residential real estate. Deficiencies identified in valuations, either through an institution’s valuation review processes or through consumer-provided information, may be a basis for financial institutions to question the credibility of the appraisal or valuation report.
The guidance:
- Offers examples of ROV policies and procedures that a financial institution may implement to help institutions identify, address, and mitigate discrimination risk;
- Describes the risks of deficient residential real estate valuations; and
- Explains how financial institutions may incorporate ROV processes into risk management functions.
The guidance is final as of the date of publication in the Federal Register.
BSA Suspicious Activity Report Notices Template
The update to this product is in response to:
- FinCEN Alert FIN-2024-Alert002 entitled “Supplemental Alert: FinCEN Highlights Additional Red Flags Regarding Financing of Israeli Extremist Settler Violence Against Palestinians in the West Bank” dated 07/11/24 that provides additional red flags to assist U.S. financial institutions in identifying and reporting suspicious activity related to the financing of this violence. Additionally, this alert requests that financial institutions continue to use the existing SAR code (FIN-2024-WBEXTREMISM) when submitting SARs specific to the financing of Israeli extremist settler violence in the West Bank and reminds financial institutions of their Bank Secrecy Act (BSA) reporting obligations.
- FinCEN Notice FIN-2024-NTC2 entitled “FinCEN, OFAC, and FBI Joint Notice on Timeshare Fraud Associated with Mexico-Based transnational Criminal Organizations” dated 07/16/24 that urges financial institutions to be vigilant in detecting, identifying, and reporting timeshare fraud perpetrated by Mexico-based transnational criminal organizations (TCOs). According to the FBI, since at least 2012, the Jalisco New Generation Cartel (CJNG) and other Mexico-based TCOs have increasingly targeted U.S. owners of timeshare properties in Mexico. Older adults, including retirees, are frequent victims in these schemes. The TCOs use proceeds from timeshare fraud to diversify their revenue streams and finance other criminal activities, including the manufacturing and trafficking of illicit fentanyl and other deadly synthetic drugs into the United States.
As a reminder, the BSA Suspicious Activity Report Notices Template is included in the purchase price of the Bank Secrecy Act Policy Template – Comprehensive Version.
Federal Deposit Insurance Act Section 19 Policy Template
Human Resources General Policy Template
The update to these products is in response to the FDIC’s FIL-49-2024 entitled “Final Rule to Revise FDIC Regulations Concerning Section 19 of the Federal Deposit Insurance Act” dated 07/30/24 that the FDIC is revising its regulations to conform with the Fair Hiring in Banking Act (FHBA)—which was enacted on and immediately effective as of December 23, 2022. Among other provisions, the FHBA excluded or exempted categories of otherwise-covered offenses from the scope of statutory prohibitions on participation in banking. These categories pertain to certain older offenses, offenses committed by individuals 21 or younger, and relatively minor offenses. In addition, the FHBA clarified several definitions in section 19 and provided application-processing procedures. The FDIC considers most of the revisions to its regulations to be required by the FHBA. Most other revisions reflect the FDIC’s interpretation of statutory prohibitions in light of the FHBA. This rule will be effective on October 1, 2024.
Vendor Management Program Policy Template
The update to this product is in response to the Joint Release entitled “Joint Statement on Banks’ Arrangements with Third-Parties to Deliver Bank Deposit Products and Services” dated 07/25/24 that note potential risks related to arrangements between banks and third-parties to deliver bank deposit products and services to end users. This statement highlights examples of risk management practices by banks to manage such risks, and reemphasizes existing guidance.
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