In a recent advisory, the Financial Crimes Enforcement Network (FinCEN) provided instruction to U.S. financial institutions on promoting a culture of BSA/AML compliance. The suggestions stemmed from recent enforcement actions, from which FinCEN gleaned recurring themes for banks’ consideration, and included:
- Involve bank leadership: Create tailored BSA training for the institution’s leaders and ensure they set the right tone by supporting BSA/AML training for all employees.
- Don’t compromise compliance for revenue: Make sure your compliance staff have sufficient authority and autonomy to do what’s right for the institution.
- Share information throughout the organization: There is information in various departments of a financial institution that may be useful and should be shared with compliance staff.
- Invest in compliance: Leadership should invest in the human and technological resources necessary to support BSA/AML compliance.
- Test your program: Subject your program to testing by an independent and competent party.
- Understand how BSA reports are used: Better understanding enables better reporting.
Over the last several weeks, we’ve highlighted a number of ways that you can support the IBAT Political Action Committee (PAC) during IBAT’s 40th Annual Convention in Fort Worth next month. But, no event is more anticipated than IBAT’s annual live and silent auction.
Get a leg up on the competition by scoping out a number of the items, now available for viewing online, before you arrive in Fort Worth.
Also, don’t forget that, even if you can’t be with us in Fort Worth, you can still have a shot at winning $5,000 cash in our Dream Vacation contest. Click here to buy your tickets.
We're very excited that The Advisory Group (TAG) is bringing their annual conference to San Antonio September 14-17, 2014!
There is much excitement surrounding this year’s conference, especially the speakers who have signed up to run the education sessions. Many of the presenters will lead discussions around branch transformation, managing operational complexity and successful technology deployment and implementation. One of IBAT’s own members, Gene Erwin, SVP Retail Banking from Guaranty Bank & Trust, will host a branch transformation session, A New Approach to Customer Service.
The conference is a great opportunity to preview the latest industry technologies, get up to speed on industry trends and network with your peers and Diebold team members.
The Certified Community Bank Director Program (CCBD) will be held October 30-November 1, 2014 at the Cox School of Business on the campus of Southern Methodist University. The CCBD designation is a collaboration of and is administered by IBAT and the Southwestern Graduate School of Banking (SWGSB) Foundation. A comprehensive curriculum has been created to address all areas of bank directorship – from duties and responsibilities to the foundations of bank finance.
IBAT also offers a bank director series of webinars for live viewing, digital download or CD-Rom receipt. Upcoming programs include:
The hotel reservation deadline for IBAT's 40th Annual Convention has been extended through Monday, August 25, 2014. All hotel reservations must be made through IBAT, by either registering online, or filling out the paper registration form. The hotel is not accepting reservations for the IBAT Convention directly.
Rooms cannot be guaranteed after the August 25 deadline. If you have any questions, please do not hesitate to contact our registrar, Leslee Walker, by calling 512-474-6889 / 800-749-4228 or emailing her at email@example.com. She will be happy to assist you.
IBAT Leadership Division Regions 10 and 2 are hosting sporting clay events on August 27 and August 28, respectively. These events are organized to help community bankers network at the local level and to help raise funds for IBAT's Legislative Fund in order to continue the fight in Washington.
Both events are open to bank employees, directors and sponsors. If you are not interested in attending the clay shooting part of the events, you are welcome to attend the networking and dinner portions of the day.
Earlier this month FICO announced that the new FICO® Score 9 introduces a more nuanced way to assess consumer collection information, bypassing paid collection agency accounts and offering a sophisticated treatment differentiating medical from non-medical collection agency accounts. The intent is to ensure that medical collections have a lower impact on the score, commensurate with the credit risk they represent. FICO’s press release says that these enhancements help lenders because they result in greater precision.
"Unfortunately, the release of a new FICO scoring model does not automatically result in a change of credit scores for the consumer when they go for a loan. The lender must also use the new FICO model,” said Eddie Johansson, President of Credit Security Group and instructor in IBAT’s Teach the Teacher Program™ and Teach the Lender Program™.
"The only scoring model that matters to the borrower is the one their lender is using. And most lenders are not using the latest FICO model now. In the mortgage loan industry, the major factor is the model Fannie Mae and Freddie Mac use. Both currently use models that are ten years old or older - several generations behind FICO's most recent release,” Johansson added.
New leadership was ushered in last week at the Texas Department of Savings and Mortgage Lending (TDSML). Nearly 150 savings executives and industry practitioners gathered in Austin to celebrate the tenure and service of retiring TDSML Commissioner Doug Foster and to welcome new Commissioner Caroline Jones.
The Independent Bankers Association of Texas (IBAT), Texas Bankers Association (TBA) and the Texas Mortgage Bankers Association (TMBA) jointly sponsored a reception in their honor at the Austin Club. Foster was presented with a quilt embroidered with all the names of the state savings banks as well as a resolution commending him for his public service. “IBAT has enjoyed working with Commissioner Foster and we congratulate Ms. Jones on her appointment,” said IBAT President and CEO Chris Williston. “Commissioner Jones will be an asset to the regulatory system in Texas,” he added.
Jones will make her first formal appearance and introduction to the IBAT membership at IBAT’s 40th Annual Convention in Fort Worth in late September, as part of the State Bankers Regulatory Roundtable.
We’re a “go” for IBAT Winter Summit XV! The top regulators are in... the attorney panel is back... and we hope to see you in South Lake Tahoe February 8-10, 2015. A unique education value in a relaxed setting at a terrific venue.
Watch for more information and registration information on this popular program.
Slack in the labor market? Well it didn’t take long to fill that little civil service posting in Iraq. In fact, that Prime Minister position got filled before it was even vacant. Job seekers, however, need not despair just because that plum job is no longer available. We learned this week that job openings in the U.S. as measured by the BLS have risen to their highest level since 2001. The Job Openings and Labor Turnover (JOLTs) report revealed this week that the number of job openings rise to 4,671k in June, up from 4,577k in May. Job openings tend to increase when economic performance is stout and expectations are high. Okay.
The 2014 IT Security Summit is coming up on August 21 in Dallas. IBAT’s IT Security Summit is designed for CEOs, COOs, security officers and anyone responsible for risk management of a community bank’s information technology department. Speakers will cover the hot topics facing community banks’ IT departments from a banker viewpoint and the regulatory issues of the IT exam.
Summit topics include:
- Cybercriminals Targeting Community Banks - Who, How And Why;
- Are Your Business Continuity and Disaster Recovery Programs Behind the Times?; and
Addressing Security Challenges with M&A Activity and Your Supply Chain.
IBAT is pleased to announce a development in the life of our landmark publication, The Texas Independent Banker magazine.
Earlier this year, IBAT engaged Naylor, LLC, to publish the magazine beginning with the January/February issue next year. Naylor will assist us in re-envisioning a print publication for the twenty-first century Texas community banking industry, while maintaining the right balance between informative resource articles and reporting on the activities of IBAT and its members. Naylor will also take responsibility for the sale of advertising in the publication.
We believe you’ll find the publication consistent with IBAT’s full slate of member communications and we look forward to sharing our work with you in early 2015. Stay tuned for more in the weeks ahead.
The Bank Lending Institute (BLI)™ leads the field in preparing community bankers for banking in the 21st Century. Guided by the industry’s top regulators and banking professionals, BLI gives community bank lenders the tools necessary to serve their customers while effectively managing their institution’s risk and enhancing its profitability. Here the emphasis is on practical, real-world issues and solutions. During the first year, BLI takes students through the “nuts and bolts” of lending offering techniques to better understand the borrower and his needs. The second year builds on that knowledge base by covering specific types of lending. It helps elevate lenders to a new level of strategic thinking and presentation.
This year in Fort Worth, September 27-30, you can expect great educational sessions, fabulous keynote speakers and a variety of opportunities to contribute to the IBAT PAC, all while celebrating IBAT's 40 years of existence.