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Deposit Compliance Hot Topics from ICS Compliance_March 2010


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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.

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.

Published in: Economy & Finance
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Deposit Compliance Hot Topics from ICS Compliance_March 2010

  1. 1. 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
  2. 2. 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.
  3. 3. 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
  4. 4. 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
  5. 5. 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)
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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: or call him at: 856.220.2240
  15. 15. Thank you for participating in today’s webinar: HOT TOPICS in Deposit Compliance Visit the News Center at for: For more information, • Recording of this webinar please contact: • Answers to questions not discussed on this webinar Michael Pappolla, Director • Details on our next webinar 888.250.4400