ABA Newsbytes | Threading the Needle on Climate Risk

In today’s media and political environment, it is almost impossible to avoid discussions on climate change, and within banks, there are likely a wide range of views on the topic. In a new article for ABA Risk and Compliance, Eric Wischman, EVP and climate risk officer at M&T Bank, said the current moment provides risk management leaders with an excellent opportunity to ground their organizations on climate change within a traditional risk management construct that resonates with all stakeholders.

“Removing ourselves from the noise and the emotion, climate risk may pose a material emerging risk for any financial institution,” Wischman writes. “A blend of traditional risk management practices and new approaches will significantly aid in determining that risk and the extent to which climate risk should be integrated into our existing risk management practices.”

Efforts to manage climate risk begin by finding common ground with all key stakeholders in an organization by rooting discussions about risk in developing the capabilities and tools to properly identify and assess the risk, Wischman writes. Be mindful and prepared to respond to questions from the board regarding the level of exposure the financial institution has to climate risk. And to the extent that the institution is publicly traded, it will need to strongly consider developing the internal capabilities and controls necessary to disclose climate risk to comply with federal or state requirements.

View full article.

CISA: Senior Citizen Victims

CISA

At least 101,000 Americans ages 60 and older were victims of digital fraud last year, with the average person losing $33,915. Total American citizen losses exceeded $3.4B with 40% of that involving cryptocurrency.

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ABA Banking Journal: Is It Time to Kill the Paper Check?

Checks have become so marginal that the Federal Reserve’s Survey of Consumer Payment Choice relegates them to a category of "other," which, along with prepaid cards and money orders, accounted for less than 9% of all payments in 2022. But checks aren’t entirely dead, with 11.2 billion still written in the U.S. in 2021. Meanwhile, their use by criminals as a vector of fraud has shot up. Which raises the question: If the paper check won’t die, is it time to kill it?

The cover story of the newly released May/June issue of the ABA Banking Journal explores the continued use case for paper checks by businesses and consumers, and what technology and tools exist to replace them. It also discusses efforts like payee positive pay and ABA's Check Fraud Directory that can make checks more secure.

Read the article.

FinCEN Director Offers Tips for Filing Suspicious Activity Reports

FinCEN Financial institutions can improve the value of their suspicious activity reports for law enforcement by taking steps such as providing citations and identifying known ties to foreign countries, Financial Crimes Enforcement Network Director Andrea Gacki said Monday. Speaking at an anti-money laundering conference in New York City, Gacki said her agency received nearly 119,000 SARs between April 1, 2022, and March 31 of this year, for an average of 5,000 a month. Given the importance of SARs to law enforcement, she shared three best practices for increasing their utility for FinCEN.
First, at the beginning of each SAR, include a “bottom-line, upfront” paragraph that identifies and explains why the reported activity is suspicious, Gacki said. Second, include a citation or clear explanation of any external information that triggered the determination that the activity was suspicious, such as news reports. Third, identify any links to foreign countries, including IP addresses. Such links provide FinCEN the opportunity to collaborate with its counterparts in other countries, she said.
Gacki also discussed FinCEN’s collection of beneficial ownership information, as required by the Corporate Transparency Act. She said the agency has received more than 1.7 million reports since the reporting requirement went into effect on Jan. 1. She also noted that the agency is continuing its phased approach to providing BOI access, with financial institutions scheduled to receive access in spring 2025.

Read Gacki's remarks.

2024 Women in Banking Power Hour

May 29 | 3:30-5:00pm CDT

EVENT DESCRIPTION

Are you wondering about the 2024 Women in Banking event? Do you miss your other WIB friends and colleagues? Are you ready to cut out early and join us for our second Women in Banking POWER HOUR? Join us virtually at 3:30 CDT/2:30 MDT on 5/29 for a Lead Strong: Women in Banking POWER HOUR (and a half).

Because we are GRATEFUL for all of you. Because we are GRATEFUL for our awesome industry. Because we are GRATEFUL to be done with work an hour and a half early on 5/29, we are offering this FREE, hour-and-a-half session. For these 90 minutes, we’ll be “Banking on GRATITUDE”.

WHAT'S ON TAP

Melissa Hiatt, MA, CDWF, CDTLF, Strengths Communicator will present Unleashing the Superpower of Gratitude.
GRATITUDE is associated with a myriad of benefits, both mental and physical. Feeling thankful can improve sleep, mood and boost your immune system. It can also decrease depression, anxiety, and chronic pain symptoms. Ummmm… YES PLEASE! Engage with colleagues in exploring and expressing gratitude. Just imagine how well you’ll sleep tonight!

Registration is required to help us manage our Zoom numbers; however, there is no cost to attend. The link will be sent out 24 hours prior to event.

2024 SDBA Ag Credit Conference | July 17-18 | Pierre

Ag Conf

The 2024 SDBA Agricultural Credit Conference brings together key stakeholders in the financial and agricultural sectors to address pertinent issues surrounding agricultural financing and credit access. This conference serves as a platform to explore emerging trends, address common challenges, and identify opportunities for collaboration and partnership to support the long-term success and resilience of the agricultural sector. Through expert presentations, insightful discussions, panel discussions and a robust exhibit hall, attendees will gain valuable insights into navigating the challenges of agricultural lending, mitigating risks, and maximizing opportunities for growth in this vital sector of the economy.

Hotel release date: June 14

Information & Registration

Salary Survey

Blanchard Consulting Group and the SDBA would like to invite you to participate in the 2024 Salary & Cash Compensation Survey!

The survey gathers salary and cash compensation (salary + annual cash incentive/bonus + commissions) for approximately 30 executive positions and over 150 middle management and staff level positions. Data cuts will be broken out by asset size and region when there is a large enough sample size.

Survey Pricing:
• SDBA Member Participant: $300
• SDBA Member Non-participant: $550

Survey Instructions:
1. Click on the link (2024 Salary and Cash Compensation Survey Link) or visit Blanchard Consulting's website to access the secure survey link.
2. Download the Excel file and complete the survey.
3. Email the completed survey to [email protected] or utilize the secure upload link (Secure Upload Link) (also available on the Blanchard website) by Friday, June 21st.

Upcoming Events

Fraud Academy | August 6-8 | Zoom

The Fraud Academy is a “first of its kind” two-day school that will train employees at all levels of your institution on fraud risk and what they can do fight it. This program will feature speakers from the United States Secret Service, attorneys from the United States for the Eastern District of Kentucky, Lexington Police Department, and other current and former law enforcement experts that will share their experiences and insights to best educate your bankers on how to mitigate fraud risk and ultimately reduce your fraud loss.

Information and Registration

2024 SBA Minnesota Lenders Conference | September 12 | Minneapolis, MN

The SBA loan programs should be a key part of every lender’s strategy. They are a proven tool for attracting new customers with competitive loans for business expansion and working capital needs. Don’t miss this full day of premier education sessions designed specifically to help you optimize your organization’s participation in SBA’s lending programs and build your network of SBA program and industry experts.

Information and Registration

Compliance Alliance logo

Q: We have a customer that has made 3 withdrawals on 3 consecutive business days of $8,000, $7,000, and $2,500. At what point can I or do I say they are structuring?

A: This will likely ultimately require an internal determination by the bank based upon any applicable internal/investor guidelines, or historical practices, as the definition of "structuring" seems to suggest that the term can be applied to a transaction of "any amount", so long as the facts of the situation meet the definition of the term below:

“Structuring transactions occurs when a person, acting alone or in conjunction with, or on behalf of, other persons, conducts or attempts to conduct one or more transactions in currency, in any amount, at one or more financial institutions, on one or more days, in any manner, for the purpose of evading the CTR requirements.”

Learn how to put compliance management solutions from Compliance Alliance to work for your bank, by contacting (888) 353-3933 or [email protected] and ask for our Membership Team.

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