SDBA eNews

October 18, 2018

SDBA to Hold Annual Security Seminar

The SDBA will hold the 2018 Security Seminar on Oct. 30 in Sioux Falls at the Hilton Garden Inn Downtown. This well-rounded seminar focuses on a range of issues of concern to security officers, facility personnel and management.

Using current trends and examples, the topics covered will cover a variety of topics:  what the security officer is responsible for, the dangers of social engineering, 15 errors to avoid when conducting internal investigations, and board reporting: the security perspective.

The seminar is designed for security officers or directors, operations managers, auditors, HR directors, legal staff, loan officers, disaster recovery managers, collection staff and fraud investigators. Learn more and register.

Missouri Banker Meets with Trump on Regulatory Reform

A Missouri community bank CEO represented ABA and the banking industry yesterday at a White House event highlighting the Trump administration’s regulatory reform agenda. Luanne Cundiff--president and CEO of First State Bank of St. Charles and vice chairman of ABA’s Community Bankers Council--was one of six community business leaders and the only banker to join the meeting with President Trump and members of his cabinet.

“We have new heads of many regulatory agencies in place now, and they have been boots on the ground trying to listen to concerns from community bankers,” Cundiff told Trump during a press event in the Oval Office following the meeting. She added that “we have so much more to do. We have lots of ideas on how to modernize some existing regulations that are on the books.”

Consumer Financial Protection Bureau Acting Director Mick Mulvaney was also present and added that “everyone here needs their community banks to be strong. When our banking industry is strong, everyone else here does better.” Other attendees at the event included a farmer, a trucker, a coal miner, a machinist and an Indian tribe councilor active in the energy industry.

The White House released figures Tuesday highlighting the administration’s regulatory reform actions. According to the White House, Trump’s regulatory efforts saved U.S. families and business owners $23 billion in fiscal year 2018. The administration also issued 176 “deregulatory actions” in the past year, or 12 for every new one issued, according to the Office of Information and Regulatory Affairs. Cundiff recorded a bonus episode of the ABA Banking Journal Podcast to discuss the meeting and her message to the president. Listen to the podcast

CFPB Updates Rulemaking Agenda for Fall 2018

The Consumer Financial Protection Bureau yesterday updated its rulemaking agenda for the remainder of 2018. Significantly, the bureau moved its rulemaking on small business lending data collection to its “long-term actions” list, which also includes plans for a rulemaking to define abusive acts and practices and a rulemaking regarding consumer access to financial records. In the nearer term, the bureau projected that a proposed rule on small dollar lending will be issued in January and that a proposed rule to update the Fair Debt Collection Practices Act will be published in March.

The CFPB is also continuing work to implement S. 2155, the new regulatory reform law, with plans to issue rulemakings that will provide an exemption from Dodd-Frank’s mortgage escrow requirements for certain creditors with assets of $10 billion or less and develop standards for assessing consumers’ ability to repay Property Assess Clean Energy loans. It also expects to issue in March a proposal “to address some or all” of the issues related to various HMDA projects under consideration, such as revisiting the discretionary data added in the 2015 HMDA rule.

Podcast: A Rural Ag Bank Dodges the Consolidation Trend

Peg Scott is a family farmer who joined Union State Bank a couple years out of high school as a teller and went on to hold virtually every role in the bank. When the bank’s owners were looking to sell, she and her husband got a group of investors together, bought the bank and kept it local in Greenfield, Iowa. “People who have no money buy things all the time,” she recalls telling her husband jokingly. “Let’s see what we can do.”

On the latest episode of the ABA Banking Journal Podcast, Scott--who is also chairman of the Iowa Bankers Association--discusses how she teamed up with investors in her community to keep Union State Bank independent and provides advice for community bankers seeking to follow the same path. She also discusses:

  • The agricultural economy in Iowa and how trade tensions are affecting the ag sector
  • The Iowa Bankers Association’s effort--which almost succeeded in the state legislature--to equalize the tax treatment of Iowa banks and credit unions
  • Her continuing career as a family farmer and how banks are helping young and beginning farmers

Listen to this episode. Do you use podcast apps to listen? You can find the ABA Banking Journal Podcast on Apple PodcastsGoogle PlayPocket CastsStitcher and Spotify, as well as in the Daily Newsbytes email every Thursday.

Indian Ag Finance Roundtable to Take Place in Rapid City

The South Dakota Indian Business Alliance will present the Indian Agriculture Finance Roundtable on Oct. 26 in Rapid City at the Best Western Ramkota. 

The event will explore innovative solutions that are supporting tribal members as they start or grow their ag operations. Discussion topics will include: the Keepseagle V. Vilsack settlement and the new Native American Agriculture Fund, utilizing tribal courts and the Uniform Commercial Code, and Native American farmer and rancher lending success stories.

While the event is free, advanced registration is required. A light breakfast and lunch will be provided. Learn more and register.

Dakota Wesleyan University to Hold Trust Talk

Dakota Wesleyan University (DWU) in Mitchell will be talking about trusts on Oct. 25 at the Rollins Campus Center. 

A panel of key leaders in the trust management industry will address the needs and the value for DWU's new graduate certificate in trust management. The demand is high and there is an immediate need in South Dakota for trained trust professionals. 

The panel discussion will begin at noon. RSVP by Oct. 22 to Jan Larson at 605.995.2614 or via email. Learn more about DWU's graduate certificate in trust management

Hot Topic Webinar on ATM Cash-Out Attacks

US-Cert has issued multiple warnings in October regarding ATM cash-out attacks. This alert builds on the warning shared by the FBI in August, days prior to the $13.5 million Cosmos Bank ATM cash-out. 

The Graduate School of Banking in Wisconsin will hold the hot topic webinar "US-Cert Warning on ATM Cash-Out Attacks" on Oct. 29 at 2 p.m. CDT. During the webinar, SBS Cybersecurity will take a deep dive into ATM cash-out attacks and provide practical controls to bolster internal controls.

These attacks generally take place on a holiday or extended weekend, when attackers have more time to drain ATMs of cash and flee the scene. We are coming up on a few holidays and long weekends yet in 2018. Federal agencies have strong evidence that suggests the North Korean hacking group, Hidden Cobra, is leading a campaign coined FASTcash to target ATM networks. 

The webinar will also discuss internal controls for small to medium-sized financial institutions, vendor management questions for payment switch providers, and lessons learned from unlimited operation breaches. Learn more and register for the webinar.

Eide Bailly to Offer Tax Reform Update Seminar

How will the significant changes with tax reform impact the corporate tax rate? The Tax Cuts and Jobs Act overhauled how business losses are utilized in both tax and pass-through businesses. 

Join Eide Bailly for a free seminar "Tax Reform: Understanding the Net Operating Loss, Excess Business Loss and Impact on Entity Selection" on Oct. 30 in Sioux Falls. The seminar will examine the changes and discuss their impact on entity selection. 

Presented by Blake Crow, CPA, MBT, partner, the seminar will be held at the Hilton Garden Inn Downtown from 7:45 to 9:15 a.m. Learn more and register.

Compliance Alliance

Question of the Week

Question: Under Reg. DD, if a time account product is advertised generally is there a requirement to provide the term for CDs if a specific CD product is not advertised, and instead, simply that time accounts are among products offered?

Answer: No, you’re not required to provide the time requirements in 1030.8(c)(6)(i) when you are only advertising CDs generally and not a specific product. The time requirements are required when you are advertising a specific annual percentage yield (or a bonus which would trigger the APY). If you advertise the APY, it is considered a “trigger term,” which requires you to provide all of the required information in 1030.8(c), as applicable. Since you are only advertising a general product and no APY, the time period requirement is not necessarily required.

(c) When additional disclosures are required. Except as provided in paragraph (e) of this section, if the annual percentage yield is stated in an advertisement, the advertisement shall state the following information, to the extent applicable, clearly and conspicuously:

(6) Features of time accounts. For time accounts:

(i) Time requirements. The term of the account.

12 C.F.R. 1030.8(c):


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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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Contact Alisa Bousa, SDBA, at 800.726.7322 or via email.