Product Updates for March 2024
The Product Updates for March 2024 from BankPolicies.com feature the following revised policy template products:
Asset, Liability and Liquidity Management Policy Template
The update to these products is in response to the March 2024 Update to the FDIC’s Risk Management Manual of Examination Policies, specifically Section 3.3 – Securities. Updates include:
- Clarifying descriptions of control systems and components;
- Revising information about prudent due diligence standards;
- Removing references to credit ratings as the standard of creditworthiness;
- Adding information regarding liquidity and capital risks related to market risks in the investment portfolio;
- Adding examination considerations for listing securities as Special Mention;
- Adding information about Current Expected Credit Losses (CECL);
- Revising accounting references to reflect the Accounting Standards Codification; and
- Other technical edits.
The update to this product is in response to the FFIEC Press Release entitled “Statement of Examination Principles Related to Valuation Discrimination and Bias in Residential Lending” dated 02/12/24 that issued a statement of principles related to valuation discrimination and bias for member entities to consider in their consumer compliance and safety and soundness examinations. The principles aid member entities in assessing whether their supervised institutions’ compliance and risk management practices are appropriate to identify and mitigate discrimination or bias in their residential property valuation practices.
Bank Secrecy Act Policy Template – Comprehensive Version
Customer Identification Program Policy Template
The update to these products is in response to FinCEN’s final rule entitled “Beneficial Ownership Information Access and Safeguards” dated 12/22/23 that promulgated regulations regarding access by authorized recipients to beneficial ownership information (BOI) that will be reported to FinCEN pursuant to section 6403 of the Corporate Transparency Act (CTA), enacted into law as part of the Anti-Money Laundering Act of 2020 (AML Act), which is itself part of the National Defense Authorization Act for Fiscal Year 2021 (NDAA). The regulations implement the strict protocols required by the CTA to protect sensitive personally identifiable information (PII) reported to FinCEN and establish the circumstances in which specified recipients have access to BOI, along with data protection protocols and oversight mechanisms applicable to each recipient category. The disclosure of BOI to authorized recipients in accordance with appropriate protocols and oversight will help law enforcement and national security agencies prevent and combat money laundering, terrorist financing, tax fraud, and other illicit activity, as well as protect national security.
NOTE: The Access Rule does not create a new regulatory requirement for banks to access BOI from the BO IT System or a supervisory expectation that they do so. Therefore, the Access Rule does not necessitate changes to Bank Secrecy Act (BSA)/anti-money laundering (AML) compliance programs designed to comply with the existing Customer Due Diligence rule (the “current CDD Rule”) and other existing BSA requirements, such as customer identification program requirements and suspicious activity reporting. However, any access to and use of BOI obtained from the BO IT System must comply with the requirements of the CTA and the Access Rule.
Bank Secrecy Act Policy Template – Comprehensive Version
Office of Foreign Assets Control Policy Template
The update to these products is in response to OFAC’s Final Rule entitled “Inflation Adjustment of Civil Monetary Penalties” dated 01/12/24 that adjust certain civil monetary penalties for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The final rule is effective 01/12/24.
Marketing Plan and Program Policy Template
The update to these products is in response to the FCC Press Release entitled “FCC Adopts Rules to Empower Consumers to Stop Robocalls and Texts” dated 02/16/24 that announced final rules to strengthen consumers’ ability to revoke consent in a timely manner.
Human Resources Code of Ethics Policy Template
Human Resources Whistleblower Policy Template
The update to these products is in response to client requests that we incorporate whistleblower guidance issued under the Anti-Money Laundering Act (AMLA) Whistleblower Incentives and Protections (U.S. Department of Labor 31 U.S.C. § 5323 (a)(5) & (g) & (j)).
The update to this product is in response to the CFPB’s final rule entitled “Credit Card Penalty Fees Final Rule” dated 03/05/24 that amends Regulation Z, which implements the Truth in Lending Act (TILA), to address late fees charged by card issuers that together with their affiliates have one million or more open credit card accounts (referred to as “Larger Card Issuers” herein). This final rule adopts a late fee safe harbor threshold of $8 for those issuers and provides that the annual adjustments to reflect changes in the Consumer Price Index (CPI) do not apply to this $8 amount.
Unfair or Deceptive Acts or Practices (UDAP) Policy Template
The update to this product is in response to the FTC’s final rule entitled “Trade Regulation Rule on Impersonation of Government and Businesses” dated 02/15/24 that prohibits the impersonation of government, businesses, and their officials or agents in interstate commerce.
Acquisition, Development and Construction (ADC) Loan Policy
Asset Based Loans and Formula Lines of Credit Policy
Commercial Real Estate Loan Policy
Concentrations of Credit Policy
Loan Grading and Review Policy
Native American Tribal Loan Policy
Non-Accrual and Charged-Off Loan Policy
Oil and Gas Industry Loan Policy
Other Real Estate Owned Policy
Payday, Vehicle Title, and High-Cost Installment Loan Policy
Risk Management of Home Equity Lending Policy
Risk Management of Non-Traditional Mortgage Loan Products Policy
Risk Management of Subprime Mortgage Lending Policy
Small Business Administration Loan Policy
We updated 30 of our loan policy template products in various degrees to eliminate and/or modify references to the term “Troubled Debt Restructuring” (TDR). As a reminder, Accounting Standards Update (ASU) 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” eliminates the accounting guidance for troubled debt restructurings (TDRs) by creditors that have adopted Accounting Standards Codification (ASC) Topic 326 and enhances disclosures for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty.
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