This awareness is attributed both to the increased scrutiny banks are experiencing during their regulatory examinations, as well as the material number of regulatory documents issued on the subject by a host of regulatory agencies. No bank wishes to be the next bank taken to task for their overdraft practices which have withstood scrutiny for multiple examinations.
Then the Fair and Accurate Credit Transaction Act (FACTA) became law on December 4, 2003. The FACT Act revised the FCRA. The revisions, which unfolded over an eight-year period, resulted in substantial changes for all financial institutions.
For example, your teller may take deposits and fill out deposit slips for customers, but what will happen if the deposit goes into the wrong account and checks are bounced because of the teller’s action?
The new rule requires financial institutions to limit consumers’ losses when funds are stolen or cards are lost, investigate and resolve errors, and give consumers free and easy access to account information.
We will explore the different aspects of the internet, including the surface web, deep web, and dark web. The deep and dark parts of the internet allow criminals to exchange illegal goods and services, such as Silk Road. This site was designed to buy and sell drugs anonymously. Cybercriminals are also leveraging the web to buy and sell their stolen data or cyber products and services.
Examiners are reviewing call report schedules in much more detail than in the past. The rules for schedule RC-C dictate how loans are to be reported on all loan schedules, including the income statement, charge-offs and recoveries, averages, and past dues and non-accruals.
That year, the OCC and Federal Reserve issued guidance called “Supervisory Guidance on Model Risk Management,” and it has become ear-splittingly clear over the last five years that all banks, regardless of size or regulator, which use an automated transaction monitoring system, are expected to undergo an independent, periodic validation of their monitoring system to ensure it’s not “garbage in, garbage out.”