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March 24, 2025
The American Bankers Association today joined nine associations representing banks, credit unions and payment providers in restating their opposition to the Credit Card Competition Act, which would impose new network routing mandates on financial institutions that issue credit cards.
Sen. Dick Durbin (D-Ill.) has stated his intention to reintroduce the bill in the current Congress. Durbin previously cosponsored the bill with Sen Roger Marshall (R-Kan.) In a letter to lawmakers, the associations said any effort to expand the power of the federal government to intervene in the credit card market would harm consumers, small businesses and financial institutions by reducing choice, increasing costs and fraud risks, and creating economic challenges for smaller financial institutions.
Among other things, the associations pointed to recent paper by a University of Miami finance professor found that small businesses would be put “at a further competitive disadvantage” to large stores if the bill were to become law, estimating that most of the savings will accrue to retailers with $500 million or more in annual sales.
“The payment card system is convenient, secure, and hassle-free,” the associations said. “It protects consumers against fraud, guarantees businesses receive timely payments, funds reward programs like cash back, and powers the American economy, from brick-and-mortar establishments to innovative e-commerce platforms 24 hours a day, seven days a week, 365 days a year. The so-called Credit Card Competition Act, and any other legislation that intervenes in the credit card market, puts all that in jeopardy.”
ABA Banking Journal: ABA-backed bill to block CBDC introduced in Senate
March 26, 2025
Sen. Ted Cruz (R-Texas) today announced he has introduced legislation to block the Federal Reserve from issuing a central bank digital currency. The bill is cosponsored by Sens. Ted Budd (R-N.C.), Kevin Cramer (R-N.D.) and Thom Tillis (R-N.C.).
The Anti-CBDC Surveillance State Act has also been introduced in the House by Rep. Tom Emmer (R-Minn.). The American Bankers Association has voiced support for both versions.
“A central bank digital currency would fundamentally change the relationship between citizens and the Federal Reserve, and would undermine the essential role that banks play in extending credit and driving economic growth,” ABA President and CEO Rob Nichols said about the Senate bill. “The Anti-CBDC Surveillance State Act protects our financial system and our economy from these harms, and we applaud Sen. Cruz and his cosponsors for introducing it.”
Full Article
ABA Banking Journal: Executive order phases out U.S. Treasury paper checks
March 25, 2025
Under a new executive order from President Trump, effective Sept. 30, the U.S. Treasury will no longer issue paper checks for disbursements, including tax refunds, vendor payments, benefit payments and intergovernmental transfers.
The order also covers the use of paper checks to pay the federal government “as soon as practicable, and to the extent permitted by law.” In addition, it directs the Treasury Department to develop a comprehensive public awareness campaign of the change, “including guidance on accessing and setting up digital payment options.”
In a statement, American Bankers Association President and CEO Rob Nichols said the association welcomed the order. He noted that despite a continued decline in business and consumer use of checks, check fraud has continued to rise.
“That is why ABA and banks across the country launched the #PracticeSafeChecks campaign last October to educate consumers, including encouraging them to use digital banking options to send money whenever possible,” Nichols said. “The bottom line: Electronic payments are a much faster, cheaper and safer choice for consumers and the federal government.”
The move was billed as a crackdown on waste, fraud and abuse, as well as a step toward greater efficiency. According to the order, “Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer.” The White House also noted the rise in check fraud and added that maintaining the infrastructure for paper check processing cost $657 million in 2024.
The order directed the treasury secretary to make exceptions “for people without banking or electronic payment access, certain emergency payments, certain law enforcement activities, and other special cases qualifying for an exception under the order or other existing law.”
Full Article
CISA News: FBI Denver Warns of Online File Converter Scam
The FBI Denver Field Office is warning that agents are increasingly seeing a scam involving free online document converter tools, and we want to encourage victims to report instances of this scam.
In this scenario, criminals use free online document converter tools to load malware onto victims’ computers, leading to incidents such as ransomware.
“The best way to thwart these fraudsters is to educate people so they don’t fall victim to these fraudsters in the first place,” said FBI Denver Special Agent in Charge Mark Michalek. “If you or someone you know has been affected by this scheme, we encourage you to make a report and take actions to protect your assets. Every day, we are working to hold these scammers accountable and provide victims with the resources they need.”
To conduct this scheme, cyber criminals across the globe are using any type of free document converter or downloader tool. This might be a website claiming to convert one type of file to another, such as a .doc file to a .pdf file. It might also claim to combine files, such as joining multiple .jpg files into one .pdf file. The suspect program might claim to be an MP3 or MP4 downloading tool.
These converters and downloading tools will do the task advertised, but the resulting file can contain hidden malware giving criminals access to the victim’s computer. The tools can also scrape the submitted files for:
- Personal identifying information, such as social security numbers, dates of birth, phone numbers, etc.)
- Banking information
- Cryptocurrency information (seed phrases, wallet addresses, etc.)
- Email addresses
- Passwords
Unfortunately, many victims don’t realize they have been infected by malware until it’s too late, and their computer is infected with ransomware or their identity has been stolen.
The FBI Denver Field Office encourages victims or attempted victims of this type of scheme to report it to the FBI Internet Crime Complaint Center at www.ic3.gov.
In addition, the FBI Denver Field Office recommends taking the following actions to protect yourself from this scam:
- Take a breath, slow down and think. Be aware of your actions online and what risks you could be exposed to.
- Keep your virus scan software up to date and scan any file you receive before opening it to help eliminate malicious software from being installed on your computer.
If you are a victim of this scam, here are some steps to take:
- Contact your financial institutions immediately. Take steps to protect your identity and your accounts.
- Change all your passwords using a clean, trusted device.
- Make a report at IC3.gov
- Run up-to-date virus scan software to check for potentially malicious software installed by the scammers. Consider taking your computer to a professional company specializing in virus and malware removal services.
Full Article
Bank Franchise Tax + Unclaimed Property
Learn more about the economic impact of South Dakota's banking industry. Have questions about unclaimed property? We have simplified it for you and included a downloadable PDF right on our homepage.
BFT + Unclaimed Property
ACRE and how South Dakota benefits
What’s the Issue?
 Agricultural loans are critical to America’s agricultural economy, as they enable farmers and ranchers to grow their businesses. Unfortunately, rising costs and supply chain disruptions are driving up the cost of running America’s farms and ranches and driving down profitability for those businesses.
America’s farmers and ranchers rely on loans to pay for operational expenses such as seeds, fertilizer, and equipment, as well as to buy or refinance land. Access to capital is a challenge for many young farmers – 69% of whom cite it as a top challenge to beginning farming.
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In Memorium
During this year's Quad State Convention, we will pay tribute to bankers who have passed away since our last convention in Fargo, ND, honoring their contributions and legacies. This remembrance serves as a reflection of their profound influence on colleagues, customers, and the banking profession as a whole. The deadline to submit a name for the memorial service is May 16, 2025.
SDBA Seeking Candidates for 2025 Board Elections
Elections for the SDBA’s Board of Directors are scheduled for April. Two seats are up for election:
Group I and Group III.
- Group I: This seat is currently held by John McGrath, First PREMIER Bank, who is eligible to run for a second three-year term. John will be running for the Group I seat.
- Group III: This seat is currently held by Dusty Petersen, First Interstate Bank, who is eligible to run for a second three-year term. Dusty will be running for the Group III seat.
If you are interested in running for one of the Board seats, please contact one of the nominating committee members listed below by April 1, 2025. In addition, please submit a short bio and headshot photo for the voting ballot to Laura Norton at [email protected]. Newly elected SDBA Board members will take office on May 1, 2025, and serve a three-year term expiring April 30, 2028.
Group I Nominating Committee
Banks in Bon Homme, Clay, Davison, Hanson, Hutchinson, Jerauld, Lake, Lincoln, McCook, Miner, Minnehaha, Moody, Sanborn, Turner, Union and Yankton counties.
Derek Nolan
Rivers Edge Bank, Marion
605-648-3683
[email protected]
Jamie Dooley
Citibank NA, Sioux Falls
605-331-3130
[email protected]
Group III Nominating Committee
Banks in Aurora, Bennett, Brule, Buffalo, Charles Mix, Custer, Douglas, Fall River, Gregory, Haakon, Jackson, Jones, Lawrence, Lyman, Meade, Mellette, Oglala Lakota, Pennington, Stanley, Todd and Tripp counties.
Dave Nelson
First Fidelity Bank, Burke
605-775-2641
[email protected]
Craig Davis
First National Bank, Pierre
605-945-3900
[email protected]
2025 Tri-State Trust Conference
April 22-24, 2025 | Fargo, ND
 The 2025 Tri-State Trust Conference is returning to the Delta Hotel in Fargo, ND, from April 22-24. Hosted by the NDBA, this exceptional two-and-a-half-day event is designed for professionals in the Trust and Wealth Management industry.
Click here to explore the full agenda and secure your spot!
GSB Human Resources Management School
April 28-May 2, 2025 | Madison, WI
 Key take-aways:
- A clear understanding of the human resource contribution to bottom-line profitability
- A hands-on approach to learning the business of banking
- How to better select and retain top performers
- An improved performance management process
- Ways to enhance your compensation and benefits program
- How to build career paths for key performers
- Strategies to improve employee productivity, performance, and profitability
- A network of peers to share ideas and resources now and in the future
Details & Registration
 Participating in learning opportunities outside the bank can be challenging. Take advantage of the SDBA's extensive selection of webinars and on-demand training to enhance your banking expertise directly from your computer.
GSB Online Seminars
OnCourse Learning
SBS Institute
ABA Training
Question of the Week
Q: With the recent OFAC changes, what records are we now required to keep for 10 years?
A: OFAC’s interim final rule amending the Reporting, Procedures and Penalties Regulations (31 CFR Part 501) was published in September of 2024, and will go into effect on March 12, 2025. OFAC has stated that this rule will extend the recordkeeping requirements for "certain transactions" from five to 10 years.
Though the rule does not make any particular effort to be straightforward, the "certain transactions" to which the interim rule would apply would be those that are referred to in 31 CFR Part 501 Subpart C (as pointed out here.). Broadly, these would be transactions involving or subject to OFAC regulations, including blocked or sanctioned property, rejected or unexecuted prohibited transactions, transactions requiring OFAC authorization through licenses, and activities tied to specific sanctions programs. For further reference, generally, please see: 89 FR 74832). However, this is currently an interpretive area in the absence of direct guidance from the Agency. As always, we are happy to discuss further on the Compliance Hub Hotline.
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. For timely compliance updates, subscribe to Bankers Alliance’s email newsletters.
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Questions/Comments
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