Recent Comment Calls

CUNA
May 22, 2008 | COMMENTS

Proposed Amendments To CTR Exemptions

FinCEN is proposing to amend requirements under the Bank Secrecy Act (BSA) by simplifying certain aspects of the CTR exemption process.

FinCEN Form 110 would no longer be required to be completed for certain eligible customers/ members that are depository institutions, federal, state, or local governments or entities exercising governmental authority.

An annual review of information supporting the listed eligible customers/ members would also no longer be required.

FinCEN is proposing to permit depository institutions to exempt otherwise eligible Phase II customers/ members within a period of time shorter than 12 months by either enabling the institution to make a risk-based determination or by reducing the required length of time from 12 months to two months. Phase II customers/ members are businesses and payroll customers/ members that meet certain requirements

The proposal would add a requirement that when a depository institution designates a Phase II eligible customer for exemption, it must conduct a risk-based assessment of the customer's transactional activity.

Depository institutions would no longer be required to file biennially a designation of exempt person (FinCEN Form 110) for Phase II customers/ members. However, they would be required to notify FinCEN of any change in control such as a Phase II customer that it knows of, or should know of on the basis of its records.

FinCEN is also proposing to mandate that depository institutions report any revocations of exempt status.

Please submit your comments to CUNA by June 6, 2008. Comments are due to the FinCEN by June 23, 2008

Please feel free to send your comments to CUNA SVP & Deputy General Counsel Mary Dunn at mdunn@cuna.com or to Assistant General Counsel Lilly Thomas at lthomas@cuna.com; or mail them to Lilly c/o CUNA's Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, Suite 600, Washington, D.C. 20004. Click here for a copy of the proposed rule.

> Read the rest of the comment call and questions here at cuna.org

 

Fed Proposes Changes to ACH Posting Times and Changes to its Payments System Risk Policy

The Federal Reserve Board (Board) is proposing to change the posting time for commercial and government ACH debit transfers processed by the FedACH service from 11:00 a.m. ET to 8:30 a.m. ET.

The new settlement time would coincide with commercial and government ACH credit transfers and with settlement times of its private-sector competitor.

Approximately 35 corporate credit unions and banker's banks that are not eligible to incur daylight overdrafts would need to make arrangements to hold higher account balances overnight or obtain funding earlier to account for the settlement time change.

The Board is also proposing a new strategy for providing intraday credit to depository institutions in its Payments System Risk (PSR) policy.

Changes to its PSR policy include allowing institutions to pledge collateral voluntarily to secure daylight overdrafts and providing collateralized daylight overdrafts at a zero fee.

Additional changes include raising the fee for uncollateralized daylight overdrafts to 50 basis points and increasing the biweekly fee waiver to $150.

Please submit your comments to CUNA by May 27, 2008. Comments are due to the Fed by June 4, 2008.

Please feel free to email your comments to SVP and Deputy General Counsel Mary Dunn at mdunn@cuna.com or Assistant General Counsel Lilly Thomas at lthomas@cuna.com; or mail letters to Mary or Lilly c/o CUNA's Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, Suite 600, Washington, D.C. 20004. Click here for a copy of the proposed changes to the ACH posting rules. A copy of the proposed changes to the Fed's PSR policy can be accessed here.

> Read the rest of the comment call and questions here at cuna.org