Recent Comment Calls

CUNA
October 15, 2008 | COMMENTS

NACHA Proposal On Authorizations And Returns

NACHA is proposing to revise the requirements for a Receiver's written statement regarding an unauthorized ACH debit.

The proposed amendments would rename the current “Written Statement Under Penalty of Perjury” to “Written Statement of Unauthorized Debit” and replace the requirement that the statement be made under penalty of perjury with an assertion that the statement is true and correct.

The timeframe within which a receiving institution must respond to a request to produce the statement would be reduced from 60 days to 10 banking days.

Specific information regarding the unauthorized debit entry would be required on the statement.

NACHA is also proposing to consolidate the three return reason codes currently used to transmit adjustments to ACH entries into one return reason code, and establish subcodes that would more effectively convey the reason for the return.

The effective date for provisions of the proposal not impacting ACH software would be December 18, 2009. Changes that would require modifications to software would have an implementation date of March 19, 2010.

Please submit your comments to CUNA by October 24, 2008. Comments are due to the NACHA by November 7, 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 this Request for Comment.

> View CUNA's full Regulatory Comment Call, which provides additional information and questions.

OFAC Enforcement Guidelines

The Office of Foreign Assets Control (OFAC) issued “Economic Sanctions Enforcement Guidelines (Guidelines),” which reflect factors that will be considered in determining the appropriate enforcement response to an apparent violation of an OFAC sanctions program.

The Guidelines supersede all previous guidance issued by OFAC, and apply to all persons and entities subject to any of the sanctions programs administered by OFAC.

Depending on the facts and circumstances of a particular case, the Guidelines identify the actions that may be taken by OFAC.

The Guidelines list “General Factors” that will be considered in determining enforcement action or penalty amount.

In cases in which a civil monetary penalty is appropriate, the Guidelines provide a new process for establishing the amount, which includes identifying egregious and non-egregious cases, issuing pre-penalty notices, and providing an opportunity to respond to the notice regarding the amount of the proposed penalty.

Civil penalty provisions take into account the maximum penalties available under the various statutes for which OFAC enforces.

Other actions, such as the issuance of a cautionary letter or finding of violation, or a criminal referral, may be issued under certain circumstances.

Please submit your comments to CUNA by October 20, 2008. Comments are due to OFAC by November 7, 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.

> View CUNA's full Regulatory Comment Call, which provides additional information and questions.

FED To Pay Interest On Reserves

The Federal Reserve Board (Board) will begin to pay interest on depository institutions’ required and excess reserve balances, effective October 9, 2008.

The initial rate of interest for required reserve balances will be the average targeted federal funds rate over the reserve maintenance period less 10 basis points.

The interest rate for excess balances will be the lowest targeted federal funds rate during the reserve maintenance period less 75 basis points.

Interest will be paid on correspondent balances, which does not have to be passed back to the respondent.

The transitional adjustments to reserve requirements when two or more institutions merge or consolidate have been eliminated.

The Board is eliminating the “imputed reserve requirement adjustment” and the “marginal reserve requirement adjustment,” used to calculate earnings credits on clearing balances.

Please submit your comments to CUNA by November 1, 2008. Comments are due to Federal Reserve Board by November 21, 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 full rule.

> View CUNA's full Regulatory Comment Call, which provides additional information and questions.