Monday, April 29, 2013 at 9:17AM by Banking Spectrum The Consumer Financial Protection Bureau released the latest in a series of compliance guides intended to help smaller institutions comply with the agency’s new mortgage rules. The most recent guide, released by the CFPB on April 19, 2013 addresses the escrow rule set to take effect in June. Click Here for Guide.
Banking News Monday, April 29, 2013 at 9:08AM by Banking Spectrum A redesigned $100 note will begin circulating on October 8, 2013. This note, which incorporates new security features such as a blue, 3-D security ribbon, will be easier for the public to authenticate but more difficult for counterfeiters to replicate.
The new design for the $100 note was unveiled in 2010, but its introduction was postponed following an unexpected production delay. To ensure a smooth transition to the redesigned note when it begins circulating in October, the U.S. Currency Education Program is reaching out to businesses and consumers around the world to raise awareness about the new design and inform them about how to use its security features.
More information about the new design $100 note, as well as training and educational materials, can be found at www.newmoney.gov.
Banking News Wednesday, April 17, 2013 at 8:51AM by Banking Spectrum Financial institutions are reminded that they must have begun to use the new FinCEN reports, which are available only electronically through the BSA E-Filing System, by April 1, 2013.
Please see The Gold Book, Bank Secrecy chapter for details.
Operations Wednesday, April 10, 2013 at 11:42AM by Banking Spectrum To make it easier to find information about IRAs and related distribution rules, parts of the Pension chapter have been reorganized. Please see Traditional IRA Distributions and Accounts of Deceased IRA Holders.
Pension, What's New Tuesday, April 9, 2013 at 1:34PM by Banking Spectrum The Flood Disaster Protection Act of 1973 was recently amended by the Biggert-Waters Flood Insurance Act of 2012. Some provisions became effective upon enactment on July 6, 2012, while other provisions are not effective until regulations are issued. The Gold Book Flood Insurance chapter has been updated with the provisions that are presently in effect.
Compliance, What's New Friday, February 22, 2013 at 8:46AM by Banking Spectrum The Internal Revenue Service reminds taxpayers who converted amounts to a Roth IRA or designated Roth account in 2010 that in most cases they must report half of the resulting taxable income on their 2012 returns.
Normally, Roth conversions are taxable in the year the conversion occurs. For example, the taxable amount from a 2012 conversion must be included in full on a 2012 return. But under a special rule that applied only to 2010 conversions, taxpayers generally include half the taxable amount in their income for 2011 and half for 2012, unless they chose to include all of it in income on their 2010 return.
Worksheets and examples can be found in Publication 590 for Roth IRA conversions and Publication 575 for conversions to designated Roth accounts. Taxpayers who made Roth conversions in 2012 or are planning to do so in 2013 or later years must file Form 8606 to report the conversion.
As in 2010 and 2011, income limits no longer apply to Roth IRA conversions.
Please see The Gold Book, Roth IRAs for additional information and rules.
Pension Wednesday, February 6, 2013 at 8:41AM by Banking Spectrum The NYS Wage Theft Prevention Act (WTPA) requires employers to provide an annual notice to all employees by February 1. The NYS Department of Labor provides a Fact Sheet on the WTPA that will be helpful. Also see The Gold Book for more details on the WTPA.
Friday, February 1, 2013 at 2:37PM by Banking Spectrum
The Federal Financial Institutions Examination Council (FFIEC) released proposed guidance on the of the consumer protection, compliance and privacy laws to social media usage by banks, credit unions, and other covered financial institutions.
The FFIEC is responding to requests for guidance in this area from various industry and consumer interests. The guidance is intended to help financial institutions understand potential consumer compliance, legal, reputation, and operational risks associated with the use of social media, along with expectations for managing those risks. Although the guidance does not impose additional obligations on financial institutions, the FFIEC expects financial institutions to take steps to manage potential risks associated with social media, as they would with any new process or product channel.
The FFIEC invites comments on any aspect of the proposed guidance. It is specifically seeking comments on the following questions:
The proposed guidance may be found here. Comments must be received 60 days from publication in the Federal Register. All comments received will be posted generally without change to http://www.regulations.gov, including any personal information provided.
Banking News, Compliance Friday, February 1, 2013 at 8:13AM by Banking Spectrum The IRS recently issued Notice 2013-8 to provide guidance for employers regarding the increased monthly transit benefit exclusion included in the American Taxpayer Relief Act (ATRA) enacted on January 2, 2013. The IRS has provided special administrative procedures for employers to use in filing Form 941 for the fourth quarter and Forms W-2 to account for this change.
Qualified transportation fringe benefits are excluded from gross income and include the following employer-provided benefits:
1. Transportation in a commuter highway vehicle between home and work,
2. Any transit pass, or
3. Qualified parking
The ATRA retroactively increased the monthly transit benefit exclusion from $125 to $240 per participating employee for the 2012 calendar year.
Employers are permitted to make adjustments on Form 941 for the Fourth Quarter of 2012. Further details can be found in IRS Notice 2013-8 located on the IRS website.
Human Resources Friday, February 1, 2013 at 8:07AM by Banking Spectrum Please see the Federal Insurance Contributions Act in the Human Resources section for updated tax information.
Thursday, January 17, 2013 at 8:27AM by Banking Spectrum The Gold Book Compliance Chapter now contains a section on Lending Discrimination Laws and Regulations. A federal Interagency Policy Statement on Fair Lending serves as guidance for the Consumer Financial Protection Bureau, and is a benchmark for use in fair lending examination procedures. Read federal rules here and NYS rules here.
Friday, January 4, 2013 at 9:07AM by Banking Spectrum The federal bank regulatory agencies announced the annual adjustment to the asset-size thresholds used to define small bank, small savings association, intermediate small bank, and intermediate small savings association under the Community Reinvestment Act (CRA) regulations. The annual adjustments are required by the CRA rules and are effective January 1, 2013.
Compliance, What's New Tuesday, December 18, 2012 at 10:21AM by Banking Spectrum As part of its FDIC Community Banking Initiatives, the FDIC launched a draft online regulatory calendar to help community banks stay up-to-date on changes in federal banking laws, regulations, and supervisory guidance.
The calendar includes notices of proposed, interim, and final rulemakings; supervisory guidance to financial institutions issued by the FDIC and FFIEC; and joint issuances with other regulators that do not fall under the auspices of the FFIEC. It also includes selected items from other regulators relevant to the FDIC's supervisory examination programs.
The calendar is available athttp://www.fdic.gov/regulations/resources/cbi/calendar.html.
Banking News, Operations Tuesday, December 4, 2012 at 2:33PM by Banking Spectrum The temporary unlimited deposit insurance coverage for noninterest-bearing transaction account (under the Dodd-Frank Wall Street Reform and Consumer Protection Act) is scheduled to expire on December 31, 2012. Absent a change in law, beginning January 1, 2013, the FDIC will no longer provide separate, unlimited deposit insurance coverage for noninterest bearing transaction accounts.
Gold Book sections Transaction Account Guarantee Program, Notice Requirements, and IOLTA have been updated accordingly.
Compliance, What's New Tuesday, December 4, 2012 at 1:56PM by Banking Spectrum The Internal Revenue Service issued Announcement 2012-44 on November 16, 2012 providing relief to victims of Hurricane Sandy who have retirement assets in qualified employer plans and Individual Retirement Accounts (IRAs) they would like to use to alleviate hardships caused by Hurricane Sandy.
Updates have been made in the Pension chapter to reflect changes in hardship distributions, plan loans and penalty exceptions.
See:
IRS Penalty Exceptions, Hurricane Sandy Victims
Pension, What's New Tuesday, November 27, 2012 at 4:45PM by Banking Spectrum The Federal Reserve Board and the Consumer Financial Protection Bureau announced 2013 increases in the dollar thresholds for Regulation Z (Truth-in-Lending) and Regulation M (Consumer Leasing) for exempt consumer credit and lease transactions.
The following sections of The Gold Book are updated:
Truth-in-Lending (Regulation Z) Coverage
Truth-in-Lending (Regulation Z) Exemptions
Tuesday, November 20, 2012 at 2:03PM by Banking Spectrum A new classification system for citing violations in reports of examination was effective October 1, 2012. Read more.
Compliance Tuesday, November 13, 2012 at 8:43AM by Banking Spectrum Pursuant to Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), temporary unlimited deposit insurance coverage for noninterest-bearing transaction accounts (NIBTAs), including Interest on Lawyer Trust Accounts, is scheduled to expire on December 31, 2012. Absent a change in law, beginning January 1, 2013, the FDIC no longer will provide separate, unlimited deposit insurance coverage for NIBTAs at insured depository institutions (IDIs). IDIs are encouraged to take reasonable steps to provide adequate advance notice to NIBTA depositors of the changes in FDIC insurance coverage so that they may consider the impact of any change in coverage in their management of these transaction accounts.
The FDIC has provided FAQs on the changes and notifications required by the end of next month.
Tuesday, November 13, 2012 at 8:40AM by Banking Spectrum The FDIC encourages depository institutions to consider all reasonable and prudent steps to assist customers in communities affected by recent storms. The FDIC realizes that although the effects of natural disasters on local businesses and individuals can be devastating, they often are transitory. The FDIC recognizes that efforts to work with borrowers in the affected communities can be consistent with safe-and-sound banking practices and in the public interest.
Banking News Friday, November 2, 2012 at 11:14AM by Banking Spectrum Hurricane Sandy was a tropical cyclone that severely affected portions of the Caribbean, Mid-Atlantic and Northeastern United States in late October 2012. Many financial institutions and/or their branch offices were forced to close due to the devastation and power outages. Though the FAQs below may apply to other cases where employees are absent from work, these issues are presently in the minds of employers who were affected by Hurricane Sandy. We have added some FAQs to the Fair Labor Standards Act sections of the Human Resources chapter to address these concerns.
Human Resources