Compliance Briefing for Friday, May 29, 2020

To access specific issuances, go to our Top Stories section, where you'll find links to all the relevant documents.
The Minimum BSA/AML Compliance Standard

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— GlobalVision Systems, Inc.

IRS pushes back due date for filing 5498 series
In Notice 2020-35, released yesterday, the Internal Revenue Service announced it is postponing deadlines for certain time-sensitive actions. The deadline for the filing of forms in the 5498 series relating to IRA, Coverdell ESA, HSA, Archer MSA or Medicare Advantage MSA information has been postponed to August 31, 2020, and the time between the original due date of those forms and August 31 will be disregarded in the calculation of any penalty for failure to file them.

Industry Advisory: Detecting and Reporting COVID-19-Related Medical Scams
FinCEN has released a new Advisory for combating COVID-19-related crimes, and an important Notice of BSA regulatory obligations during the pandemic. Keep ahead with our informative blog, breaking down this latest guidance and how Verafin can help you meet compliance demands and counter COVID-19 crime today.
— Verafin

OCC enforcement actions
The OCC has released enforcement orders issued by the agency in April.
  • Mission National Bank, San Francisco, California, consented to the issuance of a Cease and Desist Order following findings by the OCC that the bank had failed to establish and maintain an acceptable Bank Secrecy Act/Anti-Money Laundering compliance program.
  • A former vice president for human resources and chief operations officer for First National Bank, Bagley, Minnesota, consented to the issuance of an order of prohibition and for the payment of a civil money penalty of $15,000, following an OCC finding that she misappropriated $72,700 in bank funds by causing the bank to pay her annual bonuses greater than those approved by the bank due to her unilateral control of the bank's payroll process.
  • a former teller at PNC Bank, N.A., Wilmington, Delaware, was issued a Prohibition Order after failing to appear for a hearing on charges that he had misappropriated bank funds from his teller drawer and an ATM under his sole control, resulting in a bank loss of nearly $12,000.
What Are Today's Top Risks and KRIs and Why Should You Care in 3 Months?
Smartly utilizing highly effective KRIs for future-forward ERM
Learn about bankers' top-of-mind Risks and KRIs, how they are interconnected, and how advanced tech solutions combined with best practices enable risk and compliance teams to future-proof their ERM programs. Register today for 360factors' complimentary June 4 webinar.
— 360factors

Fed Board announces prohibition orders
The Federal Reserve Board has announced two enforcement actions, each resulting in consent orders of prohibition.
  • A former employee of Regions Bank, Birmingham, Alabama, was prohibited from employment or any other affiliation with any depository institution after he was found guilty of having fraudulently withdrawn over $100,000 from bank customer accounts and used them to pay off a private mortgage held by another bank customer.
  • Two former employees of Evolve Bank & Trust, Memphis, Tennessee, were issued a prohibition order for engaging in unsafe and unsound practices while running a loan production office.
Keeping Staff Engaged and Low Risk During COVID-19
Communication Strategies Keep Teams Diligent and Accountable
A great hire is a senior leader who creates a culture of communication and feedback that ensures their teams are mindful of regulations. The best leaders in these times use short, recurring meetings like virtual 1-on-1's, daily statuses and check-ins to keep staff aware and involved. Financial Professionals sources candidates with today's top communication methods in mind.
— Financial Professionals

$10B of PPP reserved for CDFIs
The SBA, in consultation with Treasury, has announced that it is setting aside $10 billion of Round 2 funding for the Paycheck Protection Program (PPP) to be lent exclusively by Community Development Financial Institutions (CDFIs).

New LIBOR transition resources from Enterprises
The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac have launched new websites that provide key resources for lenders and investors as the Enterprises transition away from the London Interbank Offered Rate (LIBOR). LIBOR is expected to stop being published at the end of 2021. The Enterprises' LIBOR Transition websites contain information about resources and products, including the Enterprises' jointly published LIBOR Transition Playbook and Frequently Asked Questions.

Reserve Banks' first quarter financial reports
The Board of Governors of the Federal Reserve System has posted the Federal Reserve Banks Combined Quarterly Financial Report for the First Quarter 2020. As of March 31, the Federal Reserve System had just begun its extensive expansion of credit support facilities in support of the U.S. economy during the coronavirus pandemic.

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