SDBA Unveils New Logo

Educate. Advocate. Grow. This is the message of the SDBA's new logo.

As the SDBA works to engage the next generation of emerging bank leaders, inspire people to get involved and develop new programming such as the Lead Strong: Women in Banking Conference, staff decided it was time for a new look for the Association. The SDBA hired Epicosity, an ideas company from Sioux Falls and SDBA associate member, to design a new logo and position statement. 

Through a branding exercise, staff chose the words strong, reliable, forward-thinking, respected and professional as the attributes to convey in the new brand. 

Epicosity describes the new logo as vibrant and modern. The type in the logo is kerned tight to symbolize the unity of the association. SDBANKERS has the "hero" position in the logo, with ASSOCIATION as the anchor. The colored squares convey upward momentum with a bar chart/financial statement feel. 

The SDBA's two subsidiaries--South Dakota Bankers Insurance and Services and South Dakota Bankers Foundation--also have new matching logos with the squares in the SDBIS Logo being orange and the squares in the Foundation logo being green. The SDBA is in the process of converting to the new logos.

Update or Create Profile with SDBA

In an effort to stay connected with our member bank employees, the SDBA is asking people to review their contact information on file with the Association. If you don't have a profile set up with the SDBA, we encourage you to do so.

There are a number of benefits of having an SDBA profile, such as receiving notification of our training and events and the ability to register online. The SDBA also provides a number of electronic publications that you can sign up to receive, such as the weekly SDBA eNews, monthly South Dakota Banker Magazine, Education Update, Regulatory Report, and Legislative Update and Bill Watch during the South Dakota State Legislature. Member bank employees can also sign up to receive protective alerts issued by the SDBA. 

• Login and review your SDBA profile. 
• Set up an SDBA profile.
• Not sure if you have a profile, contact Nadine Kepford.

Early Registration Deadline for Annual Convention Today

Today is the early registration deadline for the 2018 NDBA/SDBA Annual Convention set for June 10-12 in Fargo. 

As the banking industry continues to evolve, there is increasing pressure on banks to remain competitive. To chart the course for the future, bankers must explore new pathways, seek innovative partners and motivate people--all while focusing on bottom-line performance.

The 2018 Annual Convention will offer new ideas in new formats and an opportunity for all to engage in finding practical, real-world solutions for success in today's environment. Join with counterparts from the Dakotas for three days of learning, networking, fun and friendships. You'll go back to work with a refreshed perspective and a renewed passion for banking. See the full agenda and register to attend.

FinCEN Temporarily Suspends Beneficial Ownership Requirements for Automatic Renewal Products

Responding to concerns raised by ABA and others in the banking industry, the Financial Crimes Enforcement Network announced yesterday that it is temporarily suspending the application of the beneficial ownership requirements for certificate of deposit rollovers and loans that renew automatically. FinCEN Director Ken Blanco made the announcement during a House Financial Services subcommittee hearing on the implementation of the new customer due diligence rule, which recently took effect.

The relief is retroactive to the May 11 compliance date and will continue until Aug. 9, 2018. During that time, FinCEN will re-evaluate the requirement to determine if more permanent relief is needed. Read more. For more information, contact ABA's Rob Rowe. 

Agencies Release Exam Procedures for Beneficial Ownership Rule

As the Financial Crimes Enforcement Network’s customer due diligence rule--which includes a new requirement to verify “beneficial owners” of legal entity customers--took effect last Friday, the federal banking agencies issued new exam procedures for the rule. One set of exam procedures on customer due diligence replaces those in the current Bank Secrecy Act/anti-money laundering exam manual, and another set provides exam procedures for the new beneficial ownership requirements.

ABA is reminding member bankers that they can access a host of online resources to facilitate compliance with the rule. The resources include a staff analysis of FinCEN’s latest set of FAQs on the rule; a set of FAQs published by ABA that supplement the guidance provided by FinCEN; a sample letter, desk notice, certification form and talking points; and links to ABA training on the rule.

• Download the CDD exam procedures.
• Download the beneficial ownership exam procedures.
• Access ABA resources.
• For more information, contact ABA's Rob Rowe. 

S. 2155 Could Reach House Floor This Week

The House is now expected to vote within the next two weeks on S. 2155, the bipartisan financial regulatory reform bill advanced by the Senate in March. As the legislative process nears completion, ABA is urging bankers to call their House members and ask them to pass the bill. Call your representative now.

Also on Capitol Hill, the Senate Banking Committee will hold a confirmation hearing for Richard Clarida and Miki Bowman, who have been nominated to seats on the Federal Reserve Board. Clarida, an economist, has been named to the vice chairman role, while Bowman--a former community bank executive currently serving as Kansas' bank commissioner--will fill a seat designated for someone with community bank expertise.

The House Financial Services Committee will hold several subcommittee hearings this week, covering the FinCEN customer due diligence rule and SEC enforcement activities on Wednesday and community development block grants for disaster recovery, as well as U.S. homelessness, on Thursday. 

Dakota State Offers Cyber Leadership Degree

A new degree program that would attract, after it is fully implemented, more than 100 students to Dakota State University to study cyber leadership will be available starting this fall.

The South Dakota Board of Regents authorized the university in Madison to offer a bachelor of science degree in cyber leadership and intelligence, both on campus and online. It is the first program of its kind at the state’s public universities, although Dakota State does grant related degrees in cyber operations and in network and security administration.

DSU officials said this unique interdisciplinary program equips students with the knowledge of cyber systems and world cultures, international politics, human behavior and leadership. New graduates will be prepared to work with government leaders and corporate executives to develop strategies to defend those organizations from cyber disruption. The federal Bureau of Labor Statistics estimates more than 28,000 professionals will be needed in cyber-related fields by 2026.

In other action, the regents approved two new specializations available to students within existing degree programs at Dakota State.

One is a specialization in artificial intelligence and machine learning, which will be an option for study within the B.S. degree in computer science. Graduates with this specialization will learn certain skills related to automation of tasks and analyzing data, which will provide them new opportunities for employment in multiple workforce sectors.

Also approved was a specialization in information assurance within the DSU master of science degree in information systems. This focused study will prepare graduate students to manage risks related to the use, processing, storage, and transmission of information or data. Graduates with this specialization will be prepared for employment in high-demand occupations such as IT business analyst, information architect, information assurance manager, IT manager, chief security officer and chief technology officer.

SDSU To Offer Two New Minors in Land Evaluation, Rural Real Estate

Question of the Week

Question: For the beneficial ownership verification portion, does the bank need a copy of the drivers licenses for each identified beneficial owner?

Answer: No, the bank does not specifically need a DL for verification purposes. This is not saying that the bank does not have to verify using CIP procedures, but there is just not a specific requirement for the bank to get a DL. The bank can, for instance, verify through non-documentary methods.

(b)  Identification and verification. With respect to legal entity customers, the covered financial institution's customer due diligence procedures shall enable the institution to:

(2)  Verify the identity of each beneficial owner identified to the covered financial institution, according to risk-based procedures to the extent reasonable and practicable. At a minimum, these procedures must contain the elements required for verifying the identity of customers that are individuals under § 1020.220(a)(2) of this chapter (for banks); § 1023.220(a)(2) of this chapter (for brokers or dealers in securities); § 1024.220(a)(2) of this chapter (for mutual funds); or § 1026.220(a)(2) of this chapter (for futures commission merchants or introducing brokers in commodities); provided, that in the case of documentary verification, the financial institution may use photocopies or other reproductions of the documents listed in paragraph (a)(2)(ii)(A)(1) of § 1020.220 of this chapter (for banks); § 1023.220 of this chapter (for brokers or dealers in securities); § 1024.220 of this chapter (for mutual funds); or § 1026.220 of this chapter (for futures commission merchants or introducing brokers in commodities). A covered financial institution may rely on the information supplied by the legal entity customer regarding the identity of its beneficial owner or owners, provided that it has no knowledge of facts that would reasonably call into question the reliability of such information.

The CIP must contain risk-based procedures for verifying the identity of the customer within a reasonable period of time after the account is opened. The verification procedures must use "the information obtained in accordance with [31 CFR 1020.220] paragraph (a)(2)(i)," namely the identifying information obtained by the bank. A bank need not establish the accuracy of every element of identifying information obtained, but it must verify enough information to form a reasonable belief that it knows the true identity of the customer. The bank’s procedures must describe when it will use documents, nondocumentary methods, or a combination of both.

• Tuesday, May 22, 2018, 10-11 a.m. CDT
• Thursday, May 24, 2018, 1-2 p.m. CDT

Compliance rules and regulations change quickly. For timely compliance updates, subscribe to Compliance Alliance’s email newsletters.

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.

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Questions/Comments
Contact Alisa DeMers, SDBA, at 800.726.7322 or via email.