2023 Operations Compliance Triage ConferenceAGENDA
REMOTE FEED ACCESS TIMES
10:00am - 6:00pm Eastern Time
9:00am - 5:00pm Central Time
8:00am - 4:00pm Mountain Time
7:00am - 3:00pm Pacific Time
Conference begins each day at the specified time which is dependent on which time zone you reside in.
WEDNESDAY, SEPTEMBER 20, 2023
| CENTRAL TIME |
| 9:00 - 10:00 ||What's new? CFPB on Unfair Practices |
| 10:00 - 10:10||BREAK |
| 10:10 - 11:00 ||Reg E Part I-Did the consumer initiate or benefit from the transaction? |
| 11:00 - 11:10||BREAK |
| 11:10 - 12:00 ||Beneficial Ownership Update! Where are we with BOSS? |
|12:00 - 1:00
| 1:00 - 1:30 ||10 Common Errors on Nonresident Alien Interest Reporting |
| 1:30 - 2:00||Inherited IRAs-Eligible Beneficiaries, Designated Beneficiaries and Non Designated Beneficiaries and Trusts |
| 2:00 - 2:10||BREAK |
| 2:10 - 3:00 ||Mobile Deposits and Endorsements-Who takes the loss? |
| 3:00 - 3:45||Check returns and Liabilities |
| 3:45 - 4:00||BREAK |
| 4:00 - 5:00
||Ask Your Gurus--Q and A|
| Adjourn - See you tomorrow!|
THURSDAY, SEPTEMBER 21, 2023
| CENTRAL TIME |
|9:00 - 10:00||FDIC Myths and Changes |
| 10:00 - 10:10||BREAK |
| 10:10- 10:45 ||Regulation CC Holds - Correcting Misconceptions|
| 10:45 - 11:00||BREAK |
| 11:00 - 12:00 ||ESign on Deposit Accounts |
|12:00 - 1:00
| 1:00 - 1:30 ||Online Account Opening & COPPA |
| 1:30 - 2:00||IRA SECURE Act 2.0-What kicks in at year end! |
| 2:00 - 2:10||BREAK |
| 2:10 - 3:00 ||Regulation E Part II--Pitfalls |
| 3:00 - 3:10||BREAK |
|3:10 - 3:50
||Common Errors on CTRs |
| 3:50 - 4:00||BREAK |
|4:00 - 5:00
||Discussion--Q and A|
| Adjourn - Thank you for attending!|
- What's new? CFPB on Unfair Practices
You thought you were in the clear. Your bank had few complaints and no one said your bank had "unfair practices," until the new term "junk fees" was thrown out there. Suddenly every fee the bank has been charging is a junk fee that's unfair to your customers. Well, not every fee is a junk fee and certainly your bank never set out to do anything considered unfair. But the "times they are a-changin'" and consumers' budgets are tight. In this session, we will discuss the most targeted fees charged by financial institutions and why the CFPB and prudential regulators are going after them. Understanding this is a key to compliance going forward.
- We will explain "authorized positive, settled negative" (APSN) situations and regulators' arguments for citing them as "unfair" practices.
- You will get the latest scoop on concerns over return item fees, NSF fees and other "junk fee" targets, including the FDIC's slight tactical change on fees triggered by re-presentments of bounced checks.
- Reg E Part I-Did the consumer initiate or benefit from the transaction? ?
There are a few key issues to understand and build into your Reg E claims.
The U.S. Postal Service is recommending that people not mail checks. Check theft is skyrocketing and what does that leave? Hello, increased EFTs. And which EFTs are affected the most? Peer-to-Peer payment app use is continuing to grow and it is not just splitting the restaurant bill between a few friends. Now, it's rent payments and some of the largest bills your customer pays every month. Suddenly, the risk issue has added a couple zeros and you have to deal with that increase.
The CFPB's "guidance" isn't a law or regulation — or is it for practical purposes? We'll talk about that, too. While U.S. regulators haven't gone this far, in the UK, liability for P2P fraud will soon be split 50/50 between the financial institution and the payment vendor. For now, on this side of the Atlantic, the liability has shifted to the financial institution for those following Reg E, but it is important to understand how to implement the rules under the guidance we all have to live with.
These and many more issues will be addressed and answered.
- When is an electronic transaction unauthorized?
- Does the consumer have any responsibility?
- When do we have to give back the money?
- Can we legally pursue the wrongdoer?
- Beneficial Ownership Update! Where are we with BOSS?
There will be a new BOSS in town, in the form of the new Beneficial Ownership Secure System. Some bankers believe this will relieve your bank of a ton of work. But we don't know what we don't know. What will happen and where are we in this process? That's the topic for this session.
What we do know is:
There are many things that are unknown, but your bank has to prepare as best it can so that, as course corrections are needed, they can be managed easier than planning everything at the last minute. That's compliance management vs. compliance panic.
- Part I—Final: What reporting companies must do with FAQs
- Forms—Proposed: Forms for companies and forms for the FinCEN Identifier
- Part II—Proposed: How we, as financial institutions, gain BOSS access
- Part III—Not released: Regulations for financial institutions
- 10 Common Errors on Nonresident Alien Interest Reporting
Unfortunately, few institutions have completed the W-8BEN process correctly. This is a needless problem which results in inaccurate interest reporting and lack of backup withholding on Nonresident Aliens. This session will review the requirements so you can ensure your bank will have check marks and not "Xs" in the examiner's checklist. There are 10 common problems and you'll hear solutions in this presentation.
- Inherited IRAs-Eligible Beneficiaries, Designated Beneficiaries and Non Designated Beneficiaries and Trusts
Are you still sorting out your inherited IRAs since the SECURE ACT 1.0 and the resulting regulations? It's no wonder, with the rules for all the beneficiary types and the 10-year payout. It's a maze that we will try to sort out with checklists and flowcharts.
- Mobile Deposits and Endorsements-Who takes the loss?
In this session:
Check fraud is steeply increasing and happens in a number of ways. With the increased use of mobile deposits, we have seen new questions and new problems. And that translates to increased losses if you are not careful.
Reg CC was amended in 2018 to add an indemnity provision affecting remote deposit capture items, including mobile deposited checks. That provision can work for or against your bank, so you need to understand how it works. It is a simple rule, but there are some special limitations and conditions that have to be met, and there are steps banks can take to limit their exposure to losses.
- We will help you understand how the indemnity provision works
- We'll use the Commentary on the provision to illustrate how it works
- You'll get suggestions on how to make the rule work for your bank, whether it is a paying bank or a depositary bank handling remote deposit check items
- FDIC Myths and Changes
It's a trigger. A big bank failure gets media attention. And when multiple big banks have major problems, which deposits are federally insured and which are not gets a lot of media attention. While all depositors are created equal, their bank balances certainly are not. Some with larger balances are asking if all of their funds are insured. When was the last time you were trained on FDIC/NCUSIF deposit insurance?
In this session, we will discuss:
- Some of the common myths on deposit insurance
- Why signature cards and documents may play a critical role in determining insurance
- The changes on trust accounts for 2024
- Ways to maximize the deposit insurance available based on the overall relationship
- Regulation CC Holds - Correcting Misconceptions
Reg CC is an extremely complex topic. There are 58 defined terms running from "(a)" to "(hhh)" (for those doing the math, there are two "reserved" spots in the list). That means a lot of us need help. This session focuses on common misconceptions so you can avoid losses, complaints and noted violations of these complex rules.
As an example, have you heard you can't put a hold on a U.S. Treasury check? Of course you can! Holds on cashier's and other official bank checks are okay, too, if you place them correctly. That is a key to compliance and reduced losses. Are there times when you cannot hold funds under Reg CC? Absolutely, and we'll cover them in this short session, too. And we'll share a little-used method for extending a hold when you absolutely have to.
- Check returns and Liabilities
We've said it before, and you'll have to explain to management again — check losses are up nationwide. What this session is about is controlling your losses, following the rules, and not taking losses needlessly.
When there is an issue, it's important to understand the rules and the facts of the check in question and this helps to understand who eats the check. Is it going to be the depositary bank, the paying bank, or could it be someone else? There are time frames and liabilities for returning checks. Each side has responsibilities and takes risks as checks move through the system. You can reduce your bank's risk if you know the facts and the rules that apply.
- ESign on Deposit Accounts
There is simplicity and security when using electronic signatures. In this session you'll get the E-SIGN basics, so you know how to comply. Yes, there are rules to follow. Yes, there are required procedures that reduce the risk to the bank and help ensure there is no fraud that can contribute to a loss to the bank in any of several ways. We are hearing of financial institutions wanting to use E-SIGN in the branch as well as when the customer is remote. It streamlines the process of getting the account booked and can be both faster and more secure than traditional ways. But these institutions are likely to be missing the E-SIGN target, leaving themselves needlessly exposed.
- Online Account Opening & COPPA
In this world of instant gratification, your newest customer, and the one opening their second or third account (can you say "high retention rate"?) do not want to come into a branch or wait for snail mail to go back and forth.
Learn how to open accounts online. This session is designed to review the identification, due diligence and compliance issues for online account opening with a special look at COPPA and minors. Nobody wants to meet new account goals only to find out they violated children's protection laws.
- Regulation E Part II--Pitfalls
There are so many wrong ways to do a Reg E error investigation. Some could cost your institution civil money penalties and others may cause you to pay claims when you know it was not owed. Who has time to review and reinvestigate claims because a procedure you have been using for years is now deemed incorrect, not suitable, wrong, or a blatant violation of law? Not you or I. During this session we will talk about the pitfalls of old-school thinking.
We will review real-life Regulation E claims. Be prepared; some may be disturbing, but all will be suitable for this audience.
- Can you require your account holder to put the dispute in writing before you begin your investigation?
- Can you require a police report?
- Can you refuse to investigate common disputes?
- What if the customer still has, and never lost, their debit card?
- What if it was a family member who did the dirty deed?
- What if you paid that claim, and now a merchant refund comes in?
- Common Errors on CTRs
This will be a practical session with real examples. You will see some of the more common errors that are being made and understand why they are errors - and how to avoid them. We will focus on:
FinCEN has made some missteps in the last few years as they have tried to make the CTRs that banks and credit unions file more helpful to law enforcement in their attempts to understand what each report is telling them about the transactions being reported. That has changed the way things are done and created some confusion.
This will be a practical session with real examples. You will see some of the more common errors that are being made and understand why they are errors.
- Identifying persons in multiple roles
- Including the right transactions in the report
- CTRs involving sole proprietors' accounts with and without DBA names
- CTRs that include entities with multiple DBA or locations.
- Use of the "multiple transactions" and "aggregated transactions" boxes
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