2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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)
10. 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
11. 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.
13. 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.
14. 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.
15. Thing 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
16. Now that you are aware of FDIC compliance
guidelines that govern Devon Bank, we will
next review responsibilites for the Branch
Operations department.
18. 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
19. 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.
20. Next we will review Federal Rules and
Regulations for Devon Bank
Tellers
21. Federal Rules and Regulations for
Tellers:
• 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
22. 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.
23. 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.
24. Anti-Money Laundering:
Are procedures, regulations or laws created
to stop money launderers from making
money coming from illegal or unethical
sources look legitmate.
25. 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.
26. Regulation D: Reserve Requirements
• Reserve Requirements set reserve requirements
thresholds.
• 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.
27. Diversity:
• Bank employees must understand the
challenges that come with diversity such
as the aspects of cultures having different
standards for communication and different
beliefs.
• With the elimination of stereotypes and
embracement of diversity, individuals will
be able to work through those difference in
their workforce and maximize the
productivity of the organization.
28. Elderly Abuse:
• Legislation is being passed across the
country due to many senior citizens being
the victims of financial exploitation. Should
a bank fail to report suspicions of elder
financial abuse, they will be held liable.
29. 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.
30. The 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.
31. 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.
32. 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.
33. 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.
34. 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.
35. 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.
36. 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.
37. 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.
38. 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.
39. 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.
40. 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.
41. Regulation J: Check Collection
Governs the collection of checks and other
cash and non-cash items. Handles
returned check by Federal Reserve
Banks.
42. You have just completed the review of
Federal Rules and Regulations for
Devon Bank Tellers
Next you will complete the following
practice activities
43. Question #1
Under the BSA and Patriot Act It is Devon
Bank’s responsibility to report all
suspicious cash transactions, money
transfers or monetary instruments sold for
currency.
a) True
b) False
c) I don’t know
44. Question #2
To make good decisions a teller should:
a) Know pertinent facts
b) Know bank policy
c) Use your experience
d) All of the above
45. Question #3
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
