Bankwork$ Module 2 Regulations

Regulation BB

The Community Reinvestment Act, this law encourages banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low-and moderate-income neighborhoods.

Fair Credit Reporting Act (FCRA)

This act ensures accuracy, fairness, and privacy of personal information assembled by Consumer Reporting Agencies. Customers have the right to elect not to share certain personal information within the financial institution's family of companies.

Regulation D

Limits the withdrawals from savings accounts to just 6 per month. If customer exceeds the limit they may incur additional fees.

Regulation CC

Also known as the Expedited Funds Availability Act, this law governs the availability of funds deposited in checking accounts and the collection and return of checks.

Check 21

A federal law that is designed to enable banks to handle more checks electronically, making check processing faster and more efficient.

Regulation B

Also known as the Equal Credit Opportunity Act (ECOA), this act prohibits discrimination by lenders on the basis of age, race, color, religion, national origin, sex, marital status, or receipt of income from public assistance programs.

Regulation DD

The Truth in Savings Act, requiring depository institutions to provide disclosures to enable consumers to make meaningful comparisons of deposit accounts during consumer deposit account opening, specific maintenance transactions, or upon request.

Bank Secrecy Act (BSA)

An act related to currency transaction reporting.

U.S. Patriot Act

This act sets the minimum standards for financial institutions and their customers to identify and verify any customer who requests to open a new account or be added as an owner of an existing account.

Office of Foreign Assets Control (OFAC)

Lists businesses and individuals prohibited or restricted from doing financial transactions in the U.S. due to economic sanctions imposed on their home countries.

Regulation Z

Also known as the Truth in Lending Act, this act prescribes uniform methods for computing the cost of credit, for disclosing credit terms, and for resolving errors on certain types of credit accounts.

Regulation E

Also known as Electronic Funds Transfer (EFT), this act establishes the rights, liabilities, and responsibilities of parties in electronic funds transfers and protects consumers when they use such systems.

What does FDIC stand for and how much is protected?

Federal Deposit Insurance Corporation. - Up to $250,000.

Federal Reserve, how many branches/districts?

The Fed has 12 Districts and 24 Branches

Credits vs. Debits

Credits increase customer's assets (money in). Debits decrease assets (money out).

Currency Transaction Report (CTR)

Banks file this report on all cash transactions over $10,000 unless the customer has been properly exempted.

Monetary Instrument Log (MIL)

Banks keep a record of all cash purchases of monetary instrument between $3,000 and $10,000.

Suspicious Activity Report (SAR)

Is a report to be filed on all transactions involving suspicious or unusual activity of any dollar amount.

Money Laundering Steps

1. Placement: is injecting illegal money into the financial system. 2. Layering: is the process of moving illegal funds through multiple transactions in order to conceal their source. 3. Integration: is the process of returning the money to the criminal in a way that appears to be legitimate.

SHINE

Smile. Handshake. Introduce yourself. Customer Name. Eye contact.