deposit compliance hot topics from ics compliance_march 2010

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

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.

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

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

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)

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

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

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

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

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

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

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

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

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:

mpappolla@ICScompliance.com or call him at: 856.220.2240

Thank you for participating in today’s webinar:

HOT TOPICS

in Deposit Compliance

For more information,

please contact:

Michael Pappolla, Director

mpappolla@ICScompliance.com

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