1. 1. IntroductionThe banking industry is continuously under the watchful eye ofthe government and the Federal Reserve. The government is incharge of setting restrictions on the banking industrys borrowinglimits and the amount of deposits that banks hold in their vaults.These restrictions have a tremendous impact on bankingprofitability. It is a federal law that banks must stay complaint tobanking restrictions.
2. 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 basicknowledge about the compliance rules and regulations thatpertain to their departments.
3. 3. Compliance Training ObjectiveThis training is intended to provide participantswith a step-by-step guide for regulatorymanagement while following existing federal,state and local regulatory laws corresponding tothe Banking branch departments.
4. 4. In this training course you will learn:What is regulatory compliance and it how it effectsDevon Bank. Knowledge of Devon Bank departmentalresponsibilitiesPenalties for noncompliance and institutional risks.How to Devon Bank employees avoid governmentpenalties and fines.Why compliance is important.
5. 5. Federal RegulationsIt is Devon Banks responsibility to complywith all federal rules and regulations inevery aspect of its business.All employees are expected to comply withFederal rules and regulations.
6. 6. FDIC Compliance GuidelinesCompliance examinations are the primarymeans the FDIC uses to determinewhether a financial institutions is meetingits responsibility to comply with therequirements and proscriptions of federalconsumer protection laws and regulations.
7. 7. FDIC ContinuedThe FDIC conducts three annual reviewsto determine whether of not an institutionis compliant to Federal regulations. Thethree supervisory activities are complianceexaminations, visitations andinvestigations.
8. 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. 9. Compliance ExaminationsCompliance examinations are primarilydone to assess the quality of an FDIC-supervised institutions compliancemanagement systemTo implement federal consumer protectionstatutes and regulationsTo review compliance with relevant lawsand regulationsTo initiate effective supervisory actionwhen elements of an institutionscompliance management system aredeficient or a significant violation of the
10. 10. Compliance VisitationsCompliance visitations are conducted bythe FDIC to review the compliance postureof newly chartered institutions comingunder FDIC- supervision, or in the intervalbetween compliance examinations toreview an institutions progress oncorrective actions.
11. 11. Compliance InvestigationsCompliance investigations are conductedprimarily to follow-up on particularconsumer inquiries or complaints,including fair lending complaints.
12. 12. Institution AwarenessAll employees of Devon Bank shouldfollow the rules and regulations whenperforming job duties.Devon Bank is responsible for promotingawareness for violation of laws andregulations.
13. 13. Regulatory ComplianceRegulatory compliance is the goal thatfinancial institutions aspire to reach in theefforts to ensure all personnel arecomplaint with relevant laws andregulations.At Devon Bank, all employees arerequired to conduct business in a legaland ethical manner.
14. 14. Things to RememberDo not discriminate against a client or employee because ofrace, gender, religion, national origin, color, age, disability,sexual orientation or preference or veteran statusCommit to the highest standard of business and ethicalconduct in all activities while representing Devon BankRespect the rights of othersAvoid conflicts of interest and self dealingBe award of laws, rules, regulations and policies that apply toyour jobPromote accuracy and truth in Devon Bank businesstransactionsMaintain absolute confidentiality regarding clients recordsReport any perceived wrongdoing to your supervisor of theDevon Bank Compliance DepartmentDo not destroy any records except in accordance to DevonBank policy
15. 15. Now that you are aware of FDIC complianceguidelines that govern Devon Bank, we willnext review responsibilites for the TrustDepartment
16. 16. Trust ResponsibilitiesThe Trust Department administers financial assetson behalf of another individual.The individual within the Trust Departementrefferred as the trustee is reponsible for keepingrecords, managing assest, charitable gift orinheritances.With such great responsibility it is necessary thatindividuals within this department understandthe federal rules and regulations of Devon Bank.
17. 17. Next we will review Federal Rules andRegulations for the Devon Bank Trust Department.
18. 18. Devon Bank Trust RegulationsAmerican Disabilities Act:The main aim of this disabilities act is tostop any kind of discrimination inemployment, transportation, publicprograms and services, telecommunicationsservices and public accommodation.
19. 19. Bank Secrecy ActThis act requires financial institutions in the UnitedStates to assist United States governmentagencies to detect and prevent moneylaundering.Financial institutions are required to keep recordsof cash purchases of negotiable instruments andfile reports of cash purchases of thesenegotiable instruments of ten thousand dollarsor more.
20. 20. Patriot ActThe 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. 21. Anti-Money LaunderingAre procedures, regulations or laws createdto stop money launderers from makingmoney coming from illegal or unethicalsources look legitimate.
22. 22. Community Reinvestment ActDesigned 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. 23. DiversityBank employees must understand the challengesthat come with diversity such as the aspect ofcultures having different standars forcommunication and different beliefs.By eliminating sterotypes and embracing diversity,individuals will be able to work through thosedifference in their workforce and maximixe theproductivity of the organization.
24. 24. Elderly AbuseLegislation is being passed across thecounty due to many senior citizen beingthe victims of financial exploitaion. Shoulda bank fail to report suspicions of elderfinancial abuse, they will be held liable.
25. 25. Bank Bribery ActAmends 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. 26. Gramm-Leach-Bliley ActRequires 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. 27. Information SecurityBank 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. 28. Physical SecurityNational Institute for Occupational Safety and Healthdepicts workplace violence as any physical assault,threatening behavior or verbal abuse occurring inthe work setting.Devon Bank employees should be knowledgeable andmaintain awareness in regards to possible workplace violence.
29. 29. Regulation CC:Funds AvailabilitySpecifies 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. 30. Sexual HarassmentIt 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. 31. Regulation DD: Truth in SavingsRequires 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. 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. 33. You have just completed the review of Federal Rules and Regulations for theDevon Bank Trust Department Next you will complete the practice activities
34. 34. Question #1Which regulation ensures bank employees protect customer and employee information:a) Bank Secrecy Actb) Anti-Money Laundering Actc) Information Securityd) Gramm-Leach-Bliley Act
35. 35. Question #2Bank Secrecy Act requires Devon Bank to keeprecords 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. 36. Question #3Diversity in the workplace:a) Encourages insitutions to eliminate stereotypesb) Maximizes productivity in an organizationc) Embraces employee cultural differencesd) All the above
37. 37. Congratulations you have completed theDevon Bank Trust Department ComplianceTraining!