Product Updates for September 2023
The Product Updates for September 2023 from BankPolicies.com feature the following new policy template and revised policy and form template products:
This new product was developed in response to client requests to create a template in relation to prudently managing unique and hard-to-value assets which encompasses discretionary assets held in fiduciary accounts in asset management areas of a bank, and assets held in custody accounts and to non-managed trust accounts.
The update to this product is in response to:
FinCEN Alert FIN-2023-Alert005 entitled “FinCEN Alert on Prevalent Virtual Currency Investment Scam Commonly Known as Pig Butchering” dated 09/08/23 that highlights a prominent virtual currency investment scam known as “pig butchering.” Multiple U.S. law enforcement sources estimate victims in the United States have lost billions of dollars to these scams and other virtual currency investment frauds.
“Pig butchering” scams resemble the practice of fattening a hog before slaughter. Victims invest in supposedly legitimate virtual currency investment opportunities before they are conned out of their money. Scammers refer to victims as “pigs,” and may leverage fictitious identities, the guise of potential relationships, and elaborate storylines to “fatten up” the victim into believing they are in trusted partnerships before they defraud the victims of their assets—the “butchering.” These scams are largely perpetrated by criminal enterprises based in Southeast Asia who use victims of labor trafficking to conduct outreach to millions of unsuspecting individuals around the world.
FinCEN’s alert explains the scam’s methodology, provides behavioral, financial, and technical red flags to help financial institutions identify and report related suspicious activity, and reminds financial institutions of their reporting requirements under the Bank Secrecy Act.
FinCEN Notice FIN-2023-NTC1 entitled “FinCEN Calls Attention to Payroll Tax Evasion and Workers’ Compensation Fraud in the Construction Sector” dated 08/15/23 that calls financial institutions’ attention to what law enforcement has identified as a concerning increase in state and federal payroll tax evasion and workers’ compensation insurance fraud in the U.S. residential and commercial real estate construction industries.
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 this product is in response to the CFPB Final Rule entitled “Agency Contact Information; Technical Corrections” dated 08/25/23 that identified clerical errors in that final rule. These errors are found in the Fair Credit Reporting Act Summary of Consumer Rights in appendix K to Regulation V.
The update to these products is in response to the FDIC FIL-47-2023 entitled “FDIC Updates Equal Housing Lender Posters” dated 08/31/23 that amended some details of the posters, including updating the name of the office to which complaints should be addressed, as well as adding the web address of the FDIC’s web-based complaint portal. FDIC-supervised institutions may obtain compliant posters from the FDIC Online Catalog through FDICconnect.
The update to these products incorporates the SEC’s “Recovery of Erroneously Awarded Compensation Rules” and amendments that implements Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”), which added Section 10D to the Securities Exchange Act of 1934 (“Exchange Act”). In accordance with Section 10D of the Exchange Act, the final rules direct the national securities exchanges and associations that list securities to establish listing standards that require each issuer to develop and implement a policy providing for the recovery, in the event of a required accounting restatement, of incentive-based compensation received by current or former executive officers where that compensation is based on the erroneously reported financial information. In addition, the listing standards must require the disclosure of the policy. Additionally, the final rules require a listed issuer to file the policy as an exhibit to its annual report and to include other disclosures in the event a recovery analysis is triggered under the policy.
The effective date of the rules is October 2, 2023, and NYSE- and Nasdaq-listed issuers are required to adopt compliant clawback policies no later than December 1, 2023.
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