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
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.
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 Trust
Department
16. Trust Responsibilities
The Trust Department administers financial assets
on behalf of another individual.
The individual within the Trust Departement
refferred as the trustee is reponsible for keeping
records, managing assest, charitable gift or
inheritances.
With such great responsibility it is necessary that
individuals within this department understand
the federal rules and regulations of Devon Bank.
17. Next we will review Federal Rules and
Regulations for the Devon Bank Trust
Department.
18. Devon Bank Trust 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.
19. 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.
20. 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.
21. Anti-Money Laundering
Are procedures, regulations or laws created
to stop money launderers from making
money coming from illegal or unethical
sources look legitimate.
22. 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 neighborhood.
23. 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.
24. 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.
25. 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.
26. 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.
27. 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.
28. 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.
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. Sexual Harassment
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.
31. 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.
32. 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.
33. You have just completed the review of
Federal Rules and Regulations for the
Devon Bank Trust Department
Next you will complete the practice
activities
34. Question #1
Which regulation ensures bank employees protect
customer and employee information:
a) Bank Secrecy Act
b) Anti-Money Laundering Act
c) Information Security
d) Gramm-Leach-Bliley Act
35. Question #2
Bank Secrecy Act 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
36. Question #3
Diversity in the workplace:
a) Encourages insitutions to eliminate
stereotypes
b) Maximizes productivity in an organization
c) Embraces employee cultural differences
d) All the above
