Bankers Alliance Compliance Corner

Editor's Note: The following was submitted by Bankers Alliance. LBA, through its subsidiary Louisiana Bankers Service Corporation, has partnered with Bankers Alliance to give banks access to three compliance-related programs. Click here for more information.

  

Q: I read that the FDIC recently proposed rules that would remove restrictions on hiring candidates with criminal histories. What should we be considering regarding these new proposed changes?

A: As you mention, the FDIC did recently propose amendments to its regulations concerning section 19 of the Federal Deposit Insurance Act in light of another law that was enacted at the end of 2022—the Fair Hiring in Banking Act. In part, the FHBA lifted some of the restrictions on banks hiring candidates with criminal histories. Specifically, it excluded or exempted certain categories of criminal offenses, including certain older offenses, offenses by individuals aged 21 or younger and “certain lesser offenses.” However, these proposed revisions are at least in part just the “FDIC’s interpretation of section 19 in light of the FHBA.” In other words, while the FDIC is able to propose revisions to its own regulations, only the U.S. Congress is able to amend the actual law outlined in Section 19 of the FDIA. Further, it’s imperative that the bank also review its insurance policies and with its insurance provider as necessary. While changes to the regulations may grant the bank more flexibility in its hiring, these same practices may still be excluded from coverage by insurance companies as a matter on agreement. In other words, an insurance company could likely deny a claim or even refuse to issue a bond, even if the law or regulations would otherwise allow it.

 

Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call (888) 353-3933 or email info@compliancealliance.com and ask for the membership team. 

 

Do you know the most common cybersecurity-related threats for banks?  

  • Weak security (social engineering, stolen credentials, leaks, etc.) 
  • Malware 
  • Weak change or project management (vendor risk) 
  • Corporate account takeovers 
  • Vulnerable web-based or mobile applications

Review Alliance is an independent group of compliance specialists offering banks deep-dive audits of their existing transactions, recommendations about program enhancements or guidance on future safety and soundness. Virtual Compliance Officer was added in 2020—a new shared service-model using bank-dedicated compliance officers; perfect for monitoring and guiding your bank remotely. To learn how to put them to work for your bank, call (833)-683-0701or email info@bankersalliance.org and ask for the membership team.

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Compliance Corner Archives

2023 Nov Compliance Corner

Posted on 11/16/2023
What should you be considering regarding the FDIC recently proposed rules that would remove restrictions on hiring candidates with criminal histories? Do you know the most common cybersecurity-related threats for banks?

2023 Oct Compliance Corner

Posted on 10/26/2023
If you have a loan that was locked at 7.25% and disclosed on the LE at 7.25% but mistakenly changed to 7% on the Initial CD and then corrected on the Final CD back to 7.25%, does the bank need to honor the 7% or can the loan close with 7.25%?

2023 Sept Compliance Corner

Posted on 9/28/2023
Wondering if you can issue an access device off of a HELOC? Did you know that it is a best practice for all Mortgage Loan Originators to have their NMLS ID Number on their business cards and email signatures?

2023 Aug Compliance Corner

Posted on 8/29/2023
Check out the recent Compliance Alliance question of the week and Review Alliance Did You Know fact.

2023 July Compliance Corner

Posted on 7/26/2023
Check out the recent Compliance Alliance question of the week and Review Alliance Did You Know fact.

2023 June Compliance Corner

Posted on 6/28/2023
Check out the recent Compliance Alliance questions of the week and Review Alliance Did You Know facts.

2023 May Compliance Corner

Posted on 5/25/2023
Check out the recent Compliance Alliance questions of the week and Review Alliance Did You Know facts.

2023 Apr Compliance Corner

Posted on 4/17/2023
Check out the recent Compliance Alliance questions of the week and Review Alliance Did You Know facts.

2023 Mar Compliance Corner

Posted on 3/26/2023
Check out the recent Compliance Alliance questions of the week and Review Alliance Did You Know facts.

2023 Jan Compliance Corner

Posted on 1/25/2023
Check out the recent Compliance Alliance questions of the week and Review Alliance Did You Know facts.

2022 Dec Compliance Corner

Posted on 12/13/2022
Check out the recent Compliance Alliance questions of the week and Review Alliance Did You Know facts.

2022 Nov Compliance Corner

Posted on 11/16/2022
Check out the recent Compliance Alliance questions of the week and Review Alliance Did You Know facts.

2022 Sept Compliance Corner

Posted on 9/27/2022
Check out the recent Compliance Alliance questions of the week and Review Alliance Did You Know facts.

2022 Aug Compliance Corner

Posted on 8/18/2022
Check out the recent Compliance Alliance questions of the week and Review Alliance Did You Know facts.

2022 July Compliance Corner

Posted on 7/26/2022
Check out the recent Compliance Alliance question of the week and Review Alliance Did You Know fact.

2022 June Compliance Corner

Posted on 6/23/2022
Check out recent Compliance Alliance questions of the week and Review Alliance Did You Know facts.

2022 May Compliance Corner

Posted on 5/25/2022
Check out recent Compliance Alliance questions of the week and Review Alliance Did You Know facts.

2022 Apr Compliance Corner

Posted on 4/22/2022
Check out recent Compliance Alliance questions of the week and Review Alliance Did You Know facts.