Deposit Compliance Hot Topics from ICS Compliance_March 2010
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Transcript of Deposit Compliance Hot Topics from ICS Compliance_March 2010
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Welcome to
HOT TOPICS
in Deposit Compliance
Wednesday, 03/10/2010 @ 2:00 p.m. EST
Please turn up your computer speakers to hear the
webinar which will begin shortly
Or… to participate via phone, dial: 877.669.3239
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Welcome to INSIGHTS
Your host today is Director Michael Pappolla who has more
than 14 years in the financial services industry.
Your presenters today are:
– R&D Director Lorraine Williams
• More than 35 years of banking & regulatory experience
• Certified Regulatory Compliance Manager, Certified Risk
Professional, Certified Anti-Money Laundering Specialist
– Compliance Services Director Roger Rumbaugh
• More than 40 years banking experience in legal & regulatory
compliance
• Expertise demonstrated through numerous authorships, expert
testimonies, and banking program appearances.
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Today’s Program
Regulation CC
Regulation E
Privacy of Consumer Financial Information
Questions?
How to Learn More
This presentation is being recorded and will be available for download
next week from the News Center at www.ICScompliance.com
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Regulation CC
Impact of a single check procession region: Background
What has really happened? The “bottom line”…
– Effective date – February 27, 2010
Impact on financial institutions
Action Plan
– Amend Expedited Funds Availability Policy
• Delete references to non-local checks
– Amend Initial Expedited Funds Availability Disclosures
• Delete references to non-local checks
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Regulation CC
– Amend the “short form” Funds Availability Disclosure at/near
teller windows (Regulation CC; Appendix C-18)
– Provide a change-in-terms notice to existing accountholders
• “Effective March 1, 2010, if we decide to place a hold on a check
you deposit, the funds will generally be available on the second day
after the day of the deposit.”
– Timing of the notice
• Within 30 calendar days of March 1st
– Train (re-train) affected employees (tellers)
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Regulation E
New Overdraft Rules
Overdraft Service
– Definition
– What it does not include
Opt-in Requirement
– Provide notice
– Provide “reasonable opportunity”
– Obtain consent
– Provide confirmation
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Regulation E
Timing of Notice
– Accounts opened prior to July 1, 2010
– Accounts opened on or after July 1, 2010
Content of Notice
– Overdraft service
– Fees imposed
– Limits on fees
– Disclosure of opt-in right
– Alternative programs
– Permitted modification and additional content
Fees Subject to the Rule
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Regulation E
Imposing Conditions on Opt-in Prohibited
Joint Relationships
Continuing Right to Opt-in or to Revoke Opt-in
Duration of Opt-in
Proposed Clarifications
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Regulation E
Action Plan
– Evaluate existing practices
– Establish written policies and procedures
– Draft opt-in notice
– Revise current systems
– Conduct training
– Monitor for compliance
– Revise audit program
– Test for compliance
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Privacy of Consumer Financial Information
Background
– Gramm-Leach-Bliley Act (GLBA) of 1999 (Title V)
– Mandatory compliance required as of July 1, 2001
– Required development of policies/procedures to protect non-
public personal information of customers
– Required disclosure to customers, both at account opening and
annually, thereafter
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Privacy of Consumer Financial Information
What changed?
– Congress passed The Financial Services Regulatory Relief Act
of 2006 – amending the GLBA
– The Relief Act directed the eight federal regulatory agencies to
jointly develop a uniform model form that would:
• Be comprehensible to consumers, with a clear format & design
• Provide for clear & conspicuous disclosures
• Enable consumers to easily identify the sharing practices of
financial institutions & to compare privacy practices among financial
institutions
• Be succinct & use an easily readable type font
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Privacy of Consumer Financial Information
When?
– Model form proposed March 29, 2007, with request for comment
– Effective December 17, 2009, institutions may elect to use the
new model form disclosures
• Use of the new model form provides a legal safe harbor
– Non-Sharing Institutions
• May continue to use a simplified notice if no affiliates, & does not
share non-public, personal information of customers with non-
affiliated third parties beyond permissible sharing (processing, credit
bureaus, & in compliance with other statutes)
• Model Form, Version 1 appropriate for non-sharing institutions
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Privacy of Consumer Financial Information
– Sharing Institutions
• Use of the new model form is recommended
• Model Form, Version 2 or 3 appropriate
– Model Form 2 provides for opt-out by telephone and/or online
– Model Form 3 provides for opt-out by mail
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Questions?
Please submit your questions through the Q&A panel
to the right of your screen
If you have questions specific to your Institution,
feel free to e-mail them to Mike Pappolla at:
[email protected] or call him at: 856.220.2240
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Thank you for participating in today’s webinar:
HOT TOPICS
in Deposit Compliance
For more information,
please contact:
Michael Pappolla, Director
888.250.4400
Visit the News Center at www.ICScompliance.com for:
• Recording of this webinar
• Answers to questions not discussed on this webinar
• Details on our next webinar