1. Introduction
The banking industry is continuously under the
watchful eye of the government and the Federal
Reserve. The government is in charge of setting
restrictions on the banking industry's borrowing
limits and the amount of deposits that banks hold in
their vaults. These restrictions have a tremendous
impact on banking profitability. It is a federal law
that banks must stay complaint to banking
restrictions.

2. What is Compliance?
Compliance is the act of adhering to a standard
or a regulation. Compliance training is
mandatory for all banking employees. This
training tutorial will provide every employee
with a basic knowledge about the compliance
rules and regulations that pertain to their
departments.

3. Compliance Training Objective
This training is intended to provide
participants with a step-by-step guide for
regulatory management while following
existing federal, state and local regulatory
laws corresponding to the Banking branch
departments.

4. In this training course you will learn:
What is regulatory compliance and it how it effects Devon
Bank.
Knowledge of Devon Bank departmental responsibilities
Penalties for noncompliance and institutional risks.
How to Devon Bank employees avoid government
penalties and fines.
Why compliance is important.

5. Federal Regulations
It is Devon Bank’s responsibility to comply with all
federal rules and regulations in every aspect of its
business.
All employees are expected to comply with
Federal rules and regulations.

6. FDIC Compliance Guidelines
Compliance examinations are the primary means
the FDIC uses to determine whether a financial
institutions is meeting its responsibility to comply
with the requirements and proscriptions of federal
consumer protection laws and regulations.

7. FDIC Continued
The FDIC conducts three annual reviews to
determine whether of not an institution is
compliant to Federal regulations. The three
supervisory activities are compliance
examinations, visitations and investigations.

8. Who Regulates Devon Bank?
Office of Comptroller of the Currency (OCC)
Federal Reserve Member Banks (FRB)
Federal Deposit Insurance Corporation (FDIC)
Housing and Urban Development (HUD)

9. Compliance Examinations
Compliance examinations are primarily done to assess
the quality of an FDIC- supervised institution's
compliance management system
To implement federal consumer protection statutes and
regulations
To review compliance with relevant laws and regulations
To initiate effective supervisory action when elements of
an institution's compliance management system are
deficient or a significant violation of the law is found

10. Compliance Visitations
Compliance visitations are conducted by the FDIC
to review the compliance posture of newly
chartered institutions coming under FDIC-
supervision, or in the interval between compliance
examinations to review an institution's progress
on corrective actions.

11. Compliance Investigations
Compliance investigations are conducted
primarily to follow-up on particular consumer
inquiries or complaints, including fair lending
complaints.

12. Institution Awareness
All employees of Devon Bank should follow the
rules and regulations when performing job duties.
Devon Bank is responsible for promoting
awareness for violation of laws and regulations.

13. Regulatory Compliance
Regulatory compliance is the goal that financial
institutions aspire to reach in the efforts to ensure
all personnel are complaint with relevant laws
and regulations.
At Devon Bank, all employees are required to
conduct business in a legal and ethical manner.

14. Things to Remember
Do not discriminate against a client or employee because of
race, gender, religion, national origin, color, age, disability,
sexual orientation or preference or veteran status
Commit to the highest standard of business and ethical
conduct in all activities while representing Devon Bank
Respect the rights of others
Avoid conflicts of interest and self dealing
Be award of laws, rules, regulations and policies that apply to
your job
Promote accuracy and truth in Devon Bank business
transactions
Maintain absolute confidentiality regarding client’s records
Report any perceived wrongdoing to your supervisor of the
Devon Bank Compliance Department
Do not destroy any records except in accordance to Devon
Bank policy

15. Now that you are aware of FDIC compliance
guidelines that govern Devon Bank, we will next
review responsibilites for the Branch Operations
department.

16. Devon Bank Branch Operations
The Branch Operations goal is to
service and provide products to all
retail customers. Branch Operation
oversee:
Tellers
Customer Service Representatives
Personal Bankers
Bookkeeping/ Accounting

17. Branch Operation Responsibilities
Operations of individual branches need to be
examined, analyzed and evaluated in order to
ensure job duties are being performed.
Branch operations other responsibilities are
managing branches, ensuring adherence to
Devon Bank standards and ensuring policies are
being upheld.

18. Next we will review Federal Rules and
Regulations for Devon Bank Customer
Service Representatives/ Personal Bankers

19. Federal Rules and Regulations for Customer
Service Representative/ Personal Banker
Regulations
American Disabilities Act-
The main aim of this disabilities act is to stop any
kind of discrimination in employment,
transportation, public programs and services,
telecommunications services and public
accommodation.

20. Bank Secrecy Act
This act requires financial institutions in the
United States to assist United States
government agencies to detect and
prevent money laundering.
Financial institutions are required to keep
records of cash purchases of negotiable
instruments and file reports of cash
purchases of these negotiable instruments
of ten thousand dollars or more.

21. Patriot Act
The function of the Patriot Act is to deter and
punish terrorist acts in the United States and
around the world. The Patriot Act prevents,
deters and helps prosecute international money
laundering and financing of terrorism.

22. Anti-Money Laundering
Are procedures, regulations or laws created to
stop money launderers from making money
coming from illegal or unethical sources look
legitmate.

23. Community Reinvestment Act
Designed to encourage commercial banks and
savings associations to meet the needs of
borrowers in all segments of their communities,
including low-and moderate-income
neighborhoods.

24. Regulation D: Reserve
Requirements
Sets reserve requirements thresholds. Also defines
numerous account types and requirements for those
accounts. Defines different types of transaction and
time accounts.
Sets number of checks and other third-party transfers
allowed for savings accounts.
List entities eligible for NOW accounts.
Gives current ratios for reserve requirements.

25. Diversity
Bank employees must understand the challenges
that come with diversity such as the aspect of
cultures having different standars for
communication and different beliefs.
By eliminating sterotypes and embracing diversity,
individuals will be able to work through those
difference in their workforce and maximixe the
productivity of the organization.

26. Elderly Abuse
Legislation is being passed across the county due
to many senior citizen being the victims of
financial exploitaion. Should a bank fail to report
suspicions of elder financial abuse, they will be
held liable.

27. Regulation E: Electronic Funds Transfers:
Regulates electronic transfers as well as issuance
and use of ATM/Debit cards. EFT also,
establishes the rights, liabilities and
responsibilities of participants in electronic fund
transfer systems.
Such as automated teller machine transfers,
telephone bill-payment services, point-of-sale
(POS) terminal transfers in stores and
preauthorized transfers from or to a consumer’s
account. Such as direct deposit or social security
payments.

28. Bank Bribery Act
Amends the federal bank bribery law.
Prohibits any employees, officers,
directors, agents and attorneys of
financial institutions form accepting
anything of value for or in connection
with any transaction/exchange.

29. Regulation CC: Funds Availability
Specifies when banks must make
customers deposited funds available
for withdrawal.
Requires disclosure of interest payment
and liability schedules and establishes
rules designed to speed the collection
and return of check.

30. Regulation V: Fair Credit Reporting Act
Promotes accuracy, fairness and privacy of
personal information assembled by Credit
Reporting Agencies.

31. Federal Deposit Insurance Act
Regulates bank safety and security standards
relating to information and internal audit
systems, internal controls, credit, underwriting,
interest rate exposure, loan documentation,
asset growth and compensation fees and
benefits for insiders.

32. Gramm-Leach-Bliley Act
Requires financial institutions that offer customers
financial services or products like financial or
investment advice. Loans or insurance to
explain their information sharing practices to
their customers as well as to safeguard
sensitive data.

33. Regulation P:Privacy of Consumer
Financial Information
Requires financial institutions to provide notice to
customers about its privacy policies and practices.
Regulation P describes the conditions under which it may
disclose nonpublic personal information about
consumers to nonaffiliated third parties.
It also provides a method for consumers to“opting out”of
that disclosure.

34. Information Security
Bank employees must understand the importance
of protecting customer and employee
information.
Complying with the laws and regulations that
required due diligence, following proper security
policies and procedures, as well as reporting
potential problems.

35. Physical Security
National Institute for Occupational Safety and Health
depicts workplace violence as any physical assault,
threatening behavior or verbal abuse occurring in the
work setting.
Devon Bank employees should be knowledgeable and
maintain awareness in regards to possible work place
violence.

36. Right to Financial Privacy Act
Protects a customer's financial privacy, while still
fulfilling the needs of government agencies.
Specifies when and under what conditions, a
financial institution may release customer
financial records to the federal government.

37. Sexual Harrassment
It is necessary for all employees to be
knowledgeable in what is and what is not
acceptable behavior at Devon Bank.
In order to minimize the banks sexual harassment
complaints, all employee should keep a look out
for inappropriate conduct/language, speak up to
prevent it and report incidents with the HR.

38. Regulation DD: Truth in Savings
Requires disclosures for consumer deposit
accounts (e.g… DDA, Time, Savings, Now.)
Contains advertising requirements.
Requirements for information on periodic
statements.
Maturity notice for time accounts.
Change in terms notices.
Annual percentage yield calculations.

39. The Office of Foreign Assets Control
(OFAC)
Administers and enforces economic sanction
programs primarily against countries and groups
of individuals, such as terrorist and narcotics
traffickers.

40. Regulation J: Check Collection
Governs the collection of checks and other cash
and non-cash items. Handles returned check by
Federal Reserve Banks.

41. You have just completed the review of
Federal Rules and Regulations for Devon
Bank Customer Service Representative/
Personal Banker
Next you will complete the practice activities

42. Question #1
Regulation DD contains the following:
a) Requirements for information on
periodic statements
b) Monthly rate calculations
c) Change in term notices
d) Both A and C

43. Question #2
Which act encourages commercial banks and
savings associations to meet the needs of low
income borrowers:
a) Gramm-Leach-Bililey Act
b) The Bank Bribery Act
c) Community Reinvestment Act

44. Question #3
BSA requires Devon Bank to keep records of
funds transferred and
transmitted of….
a) $1,000 and higher
b) $3,000 and higher
c) $5,000 and up
d) $10,000 and more

45. Congratulations you have completed the Devon Bank
Customer Service Representative/ Personal Banker
Compliance Training!