FINANCIAL INSTITUTIONS

The Anti-Money Laundering Act of 2020: An Overview

The Anti-Money Laundering Act (AMLA) was enacted as part of the National Defense Authorization Act for Fiscal Year 2020 (NDAA) and included the most substantial changes to US anti-money laundering (AML) law since the US Patriot Act of 2001. While the new law clarifies and streamlines certain Bank Secrecy Act (BSA) and AML obligations, it [...]

2021-03-09T16:37:39-06:00March 9th, 2021|FINANCIAL INSTITUTIONS|

Credit Risk Management in an Unpredictable Environment

Businesses and individuals are entering 2021 with the hope of leaving the immense challenges of 2020 behind. However, the reality is that the risks that arose during 2020 will continue to be present for 2021. In fact, some of the unusual challenges we faced during 2020 will present risk management opportunities for the foreseeable future. [...]

2021-02-15T16:17:49-06:00February 15th, 2021|FINANCIAL INSTITUTIONS|

Current FDICIA Regulatory Relief – What You Need to Know Now and for the Future

The current trend among community banks is significant asset growth due to the multitude of government stimulus efforts related to COVID-19. Some institutions' total assets increased so significantly that bank management was revisiting the Federal Deposit Insurance Corporation (FDIC) Improvement Act of 1991 (FDICIA) requirements in Part 363 of the FDIC's Laws and Regulations. It [...]

2021-02-04T12:12:14-06:00January 21st, 2021|FINANCIAL INSTITUTIONS|

Don’t Sleep on CECL

CECL Dashboard The daily dose of top headlines includes COVID-19, the presidential election, the Paycheck Protection Program, and now the Supreme Court's vacancy due to the passing of Justice Ruth Bader Ginsburg.  In a world filled with differing opinions on face coverings, remote learning, testing, vaccines, economic stimulus, and more, it is relatively easy for [...]

2020-09-28T09:25:46-05:00September 23rd, 2020|FINANCIAL INSTITUTIONS|

The IIA’s Three Lines Model: A Summary

The Institute of Internal Auditors (IIA) has released an update to The Three Lines of Defense Model, now known as the Three Lines Model. Issuance of the new model is both timely and relevant, considering the circumstances surrounding COVID-19 and the anticipated economic/business impact on a prospective basis. The model is based on six key [...]

Financial Institution Regulatory Examinations and COVID-19

The Federal Financial Institution Examination Council (FFIEC) has issued guidance for examiners to consider the effects of COVID-19 in safety and soundness examinations. The interagency guidance seeks to acknowledge the "unique, evolving and potentially long-term nature" of the issues arising from COVID-19 and the impact on financial institutions. However, the guidance also notes, "examiners will [...]

2020-07-07T12:20:04-05:00July 7th, 2020|COVID-19, FINANCIAL INSTITUTIONS|

COVID-19: FinCEN Updated Notice and Bank Secrecy Act (BSA) Compliance

On April 3, 2020, the Financial Crimes Enforcement Network (FinCEN) issued an update notice to financial institutions related to the COVID-19 Pandemic, covering five primary topics: Compliance with BSA Obligations FinCEN emphasized the continued importance of BSA compliance in protecting national security by combating money laundering and related crimes, including terrorist financing. It is expected [...]

2020-04-06T22:53:20-05:00April 6th, 2020|COVID-19, FINANCIAL INSTITUTIONS|

COVID-19: Current Expected Credit Losses (CECL) Revisited … Again

In December of 2019, one might have said it would take a natural disaster for CECL to be delayed for those required to comply in the first quarter of 2020. Fast forward to March 13, and we have the equivalent as the President declared a national emergency related to the coronavirus/COVID-19 outbreak. In response, the [...]

2020-04-06T21:57:45-05:00April 6th, 2020|CECL, COVID-19, FINANCIAL INSTITUTIONS|

COVID-19 Considerations for Financial Institution Internal Auditors

The business disruption associated with the COVID-19 virus is both unprecedented and extraordinary. As financial markets in the United States see record declines, financial institutions find themselves in the unique position of seeking to execute pandemic plans, while preparing for potentially robust activity as a delivery channel for the U.S. government's massive stimulus package. As [...]

2020-04-02T11:28:53-05:00April 2nd, 2020|COVID-19, FINANCIAL INSTITUTIONS|

Community Bank Checklist for COVID-19

Community banks face many challenges during the COVID-19 pandemic. Bankers should evaluate current functions and activities throughout this uncertain time. Below you can find CRI's community bank COVID-19 checklist, by functional area, to be used as a resource to assist in this evaluation process. General Ensure effective communications are ongoing with bank customers and employees [...]

2020-03-31T16:28:13-05:00March 31st, 2020|COVID-19, FINANCIAL INSTITUTIONS|

COVID-19: Loan Modification Considerations for Financial Institutions and Their Customers

The Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Consumer Financial Protection Bureau (CFPB) and Conference of State Bank Supervisors (from now on referred to as the Agencies) have issued the Interagency Statement on Loan Modifications [...]

2020-03-24T12:03:03-05:00March 23rd, 2020|CECL, COVID-19, FINANCIAL INSTITUTIONS|

IRS Announces Relief for Financial Institutions Affected by Tax Law Change Raising the Age for Required Minimum Distributions

A new law enacted late in 2019 made a significant change in the minimum distribution requirements for individual retirement accounts (IRAs). The “Setting Every Community Up for Retirement Enhancement” (SECURE) Act became effective on December 20, 2019, and it raised the required minimum distribution (RMD) age from 70½ to 72 for individuals who will reach [...]

Considerations for Banking Cannabis-Related Businesses

Background – Legislation Effects The Controlled Substances Act of 1970 made all forms of cannabis an illegal Schedule 1 substance. Today, 33 states, plus the District of Columbia, have legalized marijuana for medical use, and 11 states allow recreational use of marijuana for adults over the age of 21. On December 20, 2018, the Agricultural [...]

2020-10-21T14:27:44-05:00January 15th, 2020|CANNABIS, FINANCIAL INSTITUTIONS|

Providing Banking Services to Customers Engaged in Hemp-Related Businesses

The Agriculture Improvement Act of 2018 (or the 2018 Farm Bill), which removed hemp as a Schedule 1 controlled substance under the Controlled Substance Act, became law on December 20, 2018. The 2018 Farm Bill directs the United States Department of Agriculture (USDA), in consultation with the U.S. Attorney General, to regulate hemp production. The [...]

2020-10-21T14:31:37-05:00December 13th, 2019|CANNABIS, FINANCIAL INSTITUTIONS|

Much Anticipated Draft Regulatory Guidance on Current Expected Credit Losses (CECL)

On October 17, 2019, the Federal Financial Institutions Examination Council (FFIEC) issued the much-anticipated proposed draft Interagency Policy Statement on Allowance for Credit Losses (ACLs). The agencies issued the draft in response to changes in the accounting for credit losses under the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 326 (most commonly [...]

2020-02-24T10:47:00-06:00October 24th, 2019|CECL, FINANCIAL INSTITUTIONS|

CECL: An Overview

The current expected credit losses (CECL) journey began with the issuance of an exposure draft in 2010, continued with the issuance of a supplementary document in 2011, and an additional exposure draft in 2012. After much debate and over 3,300 comment letters, the Financial Accounting Standards Board (FASB) released the much-anticipated Accounting Standards Update (ASU) [...]

2019-06-07T12:29:26-05:00June 6th, 2019|CECL, FINANCIAL INSTITUTIONS|

Anti-Money Laundering (AML) Implications of Human Trafficking

AML Perspectives Human trafficking is recognized as one of the fastest growing criminal enterprises, and with it comes unique challenges for AML professionals tasked with the detection and related reporting of money laundering red flags. The United Nations Office on Drugs and Crime define human trafficking as “the recruitment, transportation, transfer, [...]

2021-01-13T10:00:59-06:00February 12th, 2019|FINANCIAL INSTITUTIONS|

The Fundamentals of Customer Due Diligence

AML Perspectives Much has been made of the “Beneficial Ownership Requirements for Legal Entity Customers,” which went into effect July 11, 2016, with a compliance date May 11, 2018. In fact, on the surface, one could mistakenly ascertain FinCEN’s final rule related solely to beneficial ownership. Furthermore, there are indications that [...]

2021-01-13T10:01:47-06:00January 4th, 2019|FINANCIAL INSTITUTIONS|

The Evolution of the Bank Secrecy Act

AML Perspectives The Bank Secrecy Act (or “BSA”) has long been part of the regulatory landscape as a fundamental component of the safety and soundness process. In fact, most professionals who currently work for or with financial institutions do not recall when BSA was not a critical component of the financial institution [...]

2021-01-13T10:00:03-06:00December 3rd, 2018|FINANCIAL INSTITUTIONS|

The Continued Importance of Risk Assessment for Financial Institutions

AML Perspectives Prevailing FFIEC guidance indicates the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) risk assessment is fundamental to achieving an effective risk-based BSA/AML compliance program. In fact, the FFIEC BSA/AML Examination Manual emphasizes that examiners evaluate the financial institution’s risk assessment as part of the planning and scoping phase of the examination. [...]

2021-01-13T10:02:56-06:00November 20th, 2018|FINANCIAL INSTITUTIONS|