Product Updates for March 2023
The Product Updates for March 2023 from BankPolicies.com feature the following revised policy template products:
The update to these products is in response to the Joint Press Release entitled “Joint Statement on Liquidity Risks to Banking Organizations resulting from Crypto-Asset Market Vulnerabilities” dated 02/23/23 that highlights liquidity risks to banking organizations associated with certain sources of funding from crypto-asset-related entities and some effective practices to manage those risks.
Recent events in the crypto-asset sector have underscored the potential heightened liquidity risks presented by certain sources of funding from crypto-asset-related entities. The joint statement highlights key liquidity risks and some effective practices to monitor and appropriately manage those risks. The statement reminds banking organizations to apply existing risk management principles; it does not create new risk management principles.
Banking organizations are neither prohibited nor discouraged from providing banking services to customers of any specific class or type, as permitted by law or regulation.
The update to this product is in response to the OCC Bulletin 2023-6 entitled “Branch Closings: Revised Comptroller’s Licensing Manual Booklet” dated 02/07/23 that announced a revised “Branch Closings” booklet of the Comptroller’s Licensing Manual. The revised booklet replaces the booklet of the same title issued June 2017, makes corrections where necessary, and contains updated guidance. In addition, the revised licensing booklet removes references to outdated guidance and provides current references, and makes other minor modifications and corrections throughout.
The update to this product is in response to FinCEN Alert FIN-2023-Alert003 entitled “FinCEN Alert on Nationwide Surge in Mail Theft-Related Check Fraud Schemes Targeting the U.S. Mail” dated 02/27/23 that alerts financial institutions to be vigilant in identifying and reporting such activity. Mail theft-related check fraud generally pertains to the fraudulent negotiation of checks stolen from the U.S. Mail. Fraud, including check fraud, is the largest source of illicit proceeds in the United States and represents one of the most significant money laundering threats to the United States, as highlighted in the U.S. Department of the Treasury’s most recent National Money Laundering Risk Assessment and National Strategy for Combatting Terrorist and other Illicit Financing. Fraud is also one of the anti-money laundering/countering the financing of terrorism (AML/CFT) National Priorities.
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.
The update to these products is in response to the FDIC’s FIL-09-2023 entitled “Fair Hiring in Banking Act Amends Section 19 of the Federal Deposit Insurance Act” dated 03/09/23. On December 23, 2022, the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 (NDAA), which contained the Fair Hiring in Banking Act (Act), was signed into law and became immediately effective. The Act provides significant amendments to Section 19 of the Federal Deposit Insurance Act (12 U.S.C. § 1829) (Section 19).
In general, Section 19 prohibits a person from participating in the affairs of an FDIC-insured institution if he or she has been convicted of an offense involving dishonesty, breach of trust, or money laundering, or has entered into a pretrial diversion or similar program in connection with a prosecution for such an offense, without the prior written consent of the FDIC.
During 2023, the FDIC will:
- Revise its Section 19 application form, industry guidance, and implementing regulations (FDIC’s Filing Procedures under Part 303, Subpart L).
- Review Section 19 Orders and Section 19 Letters previously published on the FDIC’s Enforcement Decisions and Orders webpage to determine whether, in light of the Act, particular Orders and Letters should be terminated (as to Orders) and removed from the webpage (as to both types of documents).
Keeping You Informed
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