Welcome to the April Issue of the Security Spotlight
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Spring Into Disaster Preparedness
Spring ushers in the promise of budding blossoms and lush green foliage, but it also sets the stage for turbulent weather weather fueled by the clash of opposing air masses during this transitional season. In March, a deadly severe weather outbreak spawned at least 110 tornadoes and over 1,000 reports of storm damage across the Plains and South, leaving a trail of destruction in its wake, reported Fox Weather. From shattered homes to uprooted communities, these storms bring chaos and calamity that reshapes lives and landscapes in mere moments. Beyond the physical damage, the emotional toll on employees and customers is immeasurable, as they grapple with personal losses and the daunting task of rebuilding. To support the communities it serves after the recent devastating tornadoes, Regions Bank launched Disaster Recovery Financial Services.
When natural disasters strike – hurricanes, tornadoes, fires – the impact for financial institutions can be profound. Branches may be reduced to rubble, ATMs can be rendered inoperable, and critical financial services are often disrupted when they are needed most. Banks and credit unions with disaster preparedness plans established before crises strike can ensure operational resilience and support customers in weathering the storms amidst the chaos of Mother Nature's fury. Read more in our Weathering the Storm: Disaster-Proof Your Operations article.
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Tornadoes, Hurricanes, and Fires...Oh, My!
In September 2005, 5,054 branches were impacted by Hurricane Katrina; 4,774 remained open, 280 closed. There were 57 temporary branches opened by 25 institutions.
The fires that ravaged California have destroyed thousands of homes and caused an estimated $250 to $275 billion in damages. Los Angeles County was home to 1,429 bank branch offices in 2024, representing 44% of all SoCal branch locations. The $503 billion in deposits held by these offices accounts for more than one-half of all deposits in SoCal. Bank of America (which had a last one office in Altadena severely damaged by fire) and JPMorgan Chase has the largest presence in Los Angeles County.
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Questions & Answers
Question: "Our bank has taken a "no" stand on banking MRBs, however we recognize the "Tier III" category identifies some types of businesses that may provide services to a Tier I MRB. An example would be a container manufacturing company that may sell containers to a Tier I MRB as only a small percentage of their business. Does anyone use an allowable percentage of revenue to determine if this is within your risk tolerance? Also, is there an allowable threshold for direct sales of cannabis products in the states that have legalized use? (For instance, a liquor store or distributor that sells beverages with THC, since that is becoming so common).?"
Answer: Welcome to the interesting world of cannabis banking!
The Tier method you are describing is one approach to cannabis risk (proposed by ACAMs in 2016), while another one that has gained popularity in the industry is the "Indirect vs Direct" approach (first used by the SBA in 2018).
Under the 3 tier method, a Tier III business is low risk, with any revenue / activity being incidental to Tier I activity. No state licensing is required....read BOL Guru Rebekah Leonard's detailed answer at Banking marijuana-related businesses.
For more of the latest security topics, visit the Security page on BankersOnline.com
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MOST WANTED
Known Bandit...
At 5:30 p.m. on February 20,2025, a man walked into a PNC Bank branch in Las Cruces, N.M., wearing a green hat, black Adidas jacket with white stripes down the arms, glasses, and a surgical mask, and demanded cash from the teller. The teller handed over an undisclosed amount of money to the suspect and he fled the bank. The suspect was described as Hispanic, approximately 6' and about 185 lbs., with a thin build. While it's unknown how they were able to identify him, the FBI is still searching for Daniel Guereca for his alleged involvement in this heist and is asking for the public's help in locating him.
The FBI is offering a reward of up to $2,000 for information leading to the arrest and conviction of Guereca. Get more details at FBI.
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 Visit the FBI's Unknown Bank Robbers page for photos and information on the unknown bank bandits, many of them with sunglasses, hats or other head and facial coverings disguising their identity. Enforcing a no hats sunglasses policy can help reduce the number of bandits who target your bank.
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Got a Security or Operations Question?
Looking for some feedback on branch or ATM security, or need clarification on an operations or compliance matter? Click over to our FREE forums and post your question in the Public Security forum to get input from your peers (or maybe even a BOL Guru). If you have a sensitive matter you'd like to get feedback on, we also have a Private Security forum, where bankers discuss sensitive security topics out of public view, and a private forum that invites participation by bankers, regulators and members of law enforcement.
If you're a registered user of the Forums, but don't see the Private - Financial Institution Personnel Only forums near the top of the Forums list, use your bank email address to send an access request to carin@bankersonline.com. Once your request is approved, you can access the Private Security forum here.
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