The Financial Crimes Network (FinCEN) has assessed a $25,000 civil money penalty against a California bank employee for violating Bank Secrecy (BSA) prohibitions against disclosing suspicious activity reports (“SARs”).
FinCEN determined that the employee violated the BSA by willfully disclosing the existence of a SAR to a person involved in the reported transaction.
Read more in the December 15, 2011 FinCEN announcement: http://www.fincen.gov/news_room/nr/pdf/20111215.pdf
The Federal Reserve Board on announced the approval of a final rule to repeal its Regulation Q, which prohibits the payment of interest on demand deposits by institutions that are member banks of the Federal Reserve System.
The final rule implements Section 627 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which repeals Section 19(i) of the Federal Reserve Act in its entirety effective July 21, 2011. The repeal of that section of the Federal Reserve Act on that date eliminates the statutory authority under which the Board established Regulation Q.
The rule also repeals the Board’s published interpretation of Regulation Q and removes references to Regulation Q found in the Board’s other regulations, interpretations, and commentary.
The Board’s notice for the final rule may be found here: http://www.gpo.gov/fdsys/pkg/FR-2011-07-18/html/2011-17886.htm
A bill intended to encourage banks to locate in underserved communities received final legislative approval last week. If signed into law by Gov. Christie, the legislation would allow the creation of special districts in communities with few or no financial institutions.
Banks that locate in those districts would be eligible to hold State Treasury funds, and municipalities could choose such banks to hold their municipal deposits. Both steps would help to boost profitability and thereby serve as an incentive to locate in the districts.
“In many urban areas, residents are relegated to using check-cashing stores for their banking needs and forced to pay service fees that are disproportionately higher than those at established financial institutions,” said Sen. Donald Norcross (D., Camden), a sponsor of the bill. “By providing incentives for banks to open in underserved communities, we will help provide fairer access to the banking services that residents depend on and prevent people from having to pay unnecessary and burdensome costs for basic financial transactions.”
Modeled on a program in New York, the New Jersey legislation was created after the sudden closure of a Bank of America branch in Jersey City that left many residents without access to a local bank.
On August 30, 2010, Governor Paterson signed S5536-A, which became Chapter 464 of the laws of 2010. The law amends Penal Law sections 155.35 and 155.43 to make it a crime to steal an ATM or its contents.
The crime is classified as grand larceny in the 3rd degree, a Class D felony.
If a person steals an ATM or its contents and has been previously convicted of grand larceny in the 3rd degree within the previous five years, such crime is classified as aggravated grand larceny, a Class C felony.
For additional information on ATMs see Automatic Teller Machines.
The Penal Law changes became effective on November 1, 2010.
On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which, in part, permanently raises the current standard maximum deposit insurance amount to $250,000. The standard maximum insurance amount of $100,000 had been temporarily raised to $250,000 until December 31, 2013. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category.
The temporary increase from $100,000 to $250,000 was effective from October 3, 2008, through December 31, 2010. On May 20, 2009, the temporary increase was extended through December 31, 2013.
“With this permanent increase of deposit insurance coverage to $250,000, depositors with CDs above $100,000 but below $250,000 will no longer have to worry about losing coverage on those CDs maturing beyond 2013.
To help consumers, bankers and others understand how the new law affects deposit insurance coverage and to help consumers verify whether their deposit accounts are fully protected, the FDIC provides the following resources:
Visit the FDIC chapter of The Gold Book for details.
Join the forum discussion on this post Be sure to sign up for The $100 BankNote, an electronic newsletter provided by the U.S. government to help businesses and organizations around the world prepare for the redesigned $100 note’s introduction on February 10, 2011.
Visit www.newmoney.gov
Officials from the U.S. Department of the Treasury, the Board of Governors of the Federal Reserve System and the United States Secret Service today unveiled the new design for the $100 note. Complete with advanced technology to combat counterfeiting, the new design for the $100 note retains the traditional look of U.S. currency.
“As with previous U.S. currency redesigns, this note incorporates the best technology available to ensure we’re staying ahead of counterfeiters,” said Secretary of the Treasury Tim Geithner.
“When the new design $100 note is issued on February 10, 2011, the approximately 6.5 billion older design $100s already in circulation will remain legal tender,” said Chairman of the Federal Reserve Board Ben S. Bernanke. “U.S. currency users should know they will not have to trade in their older design $100 notes when the new ones begin circulating.”
There are a number of security features in the redesigned $100 note, including two new features, the 3-D Security Ribbon and the Bell in the Inkwell. These security features are easy for consumers and merchants to use to authenticate their currency.
The blue 3-D Security Ribbon on the front of the new $100 note contains images of bells and 100s that move and change from one to the other as you tilt the note. The Bell in the Inkwell on the front of the note is another new security feature. The bell changes color from copper to green when the note is tilted, an effect that makes it seem to appear and disappear within the copper inkwell.
“The new security features announced today come after more than a decade of research and development to protect our currency from counterfeiting. To ensure a seamless introduction of the new $100 note into the financial system, we will conduct a global public education program to ensure that users of U.S. currency are aware of the new security features,” said Treasurer of the United States Rosie Rios.
“For 145 years, the men and women of the United States Secret Service have worked diligently to protect the integrity of U.S. currency from counterfeiters,” said Director Mark Sullivan. “During that time, our agency has evolved to keep pace with the advanced methodologies employed by the criminals we pursue. What has remained constant in combating counterfeiting, however, is the effectiveness of consumer education initiatives that urge merchants and customers to examine the security features on the notes they receive.”
Although less than 1/100th of one percent of the value of all U.S. currency in circulation is reported counterfeit, the $100 note is the most widely circulated and most often counterfeited denomination outside the U.S.
“The $100 is the highest value denomination that we issue, and it circulates broadly around the world,” said Michael Lambert, Assistant Director for Cash at the Federal Reserve Board. “Therefore, we took the necessary time to develop advanced security features that are easy for the public to use in everyday transactions, but difficult for counterfeiters to replicate.”
“The advanced security features we’ve included in the new $100 note will hinder potential counterfeiters from producing high-quality fakes that can deceive consumers and merchants,” said Larry R. Felix, Director of the Treasury’s Bureau of Engraving and Printing. “Protect yourself – it only takes a few seconds to check the new $100 note and know it’s real.”
The new design for the $100 note retains three effective security features from the previous design: the portrait watermark of Benjamin Franklin, the security thread, and the color-shifting numeral 100.
The new $100 note also displays American symbols of freedom, including phrases from the Declaration of Independence and the quill the Founding Fathers used to sign this historic document. Both are located to the right of the portrait on the front of the note.
The back of the note has a new vignette of Independence Hall featuring the rear, rather than the front, of the building. Both the vignette on the back of the note and the portrait on the front have been enlarged, and the oval that previously appeared around both images has been removed.
For a more detailed description of the redesigned $100 note and its features, visit www.newmoney.gov where you can watch an animated video, click through an interactive note or browse through the multimedia resources for images and B-roll.
Also, visit www.newmoney.gov for information on how to order free training materials for cash handlers, or you may download the materials directly from the Web site. The training materials for the $100 note are available in 25 languages.
Join the forum discussion on this post A new online publication to help consumers better understand how to protect themselves against harmful gift card practices was unveiled Monday by the Federal Reserve Board.
What You Need to Know: New Rules for Gift Cards is the third publication in a series designed to explain Board regulations to consumers in an easy-to-understand format. This publication describes the types of cards that are covered under gift card rules released last month and highlights key protections, including new limits on expiration dates, requirements for clear fee disclosures, and fee restrictions.
Gift cards have become a common and convenient gift alternative. The Board’s new rules help ensure that consumers who give or receive gift cards are not surprised by expired cards and are protected from certain fees that reduce their value.
More information on the Board’s gift card rules, which go into effect August 22, 2010, can be found at: www.federalreserve.gov/newsevents/press/bcreg/20100323a.htm.
U.S. Government to Unveil New $100 Note Design on April 21
WASHINGTON, D.C. – The new design for the $100 note will make its debut on Wednesday, April 21 during a ceremony at the Department of the Treasury’s Cash Room. The U.S. government redesigns currency in order to stay ahead of counterfeiters and protect the public. Decisions about the redesign of each denomination are guided by the government’s close evaluation of the range of ongoing counterfeit threats, whether from digital technology or traditional printing presses.
The ceremony in Washington, D.C., will be held at 10:00 a.m. U.S. EDT and will feature:
When the new note begins circulating, it will be important for people to know that it is not necessary to trade in old-design notes for new ones. All U.S. currency remains legal tender, regardless of when it was issued.
The Federal Reserve has launched a website to help new bank directors learn how they can work to ensure the safety and soundness of their institutions. The website, BankDirectorsDesktop.org, also provides a refresher course for experienced board members.
BankDirectorsDesktop.org is tailored to directors of community banks and features online training and other resources to help directors better understand the issues and challenges associated with serving on a bank’s board.
The website includes links to the “Training for Bank Directors” interactive course and the latest edition of Basics for Bank Directors, a comprehensive guide to directors’ roles and responsibilities.
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