deposit compliance hot topics from ics compliance_march 2010
DESCRIPTION
Regulation CC With the consolidation of the check processing regions, there are no longer non-local checks. What does that mean to you? We will discuss how this will impact you and what actions you will need to take to comply. Regulation E July 1st will be here before you know it! Do you have to comply with the new opt-in requirements before charging a fee for an overdraft transaction processed through an ATM or a debit card? We will go over the requirements and help you decide. PRIVACY Are you affected by the new Privacy amendments that went into effect in January? We will discuss who is affected, use of the model forms and clauses, Fair Credit Reporting Act considerations, and the impact on your annual Privacy notice.TRANSCRIPT
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:
[email protected] 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
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