Misc Flashcards
Compliance Rating?
generally strong compliance position; capable M; system of internal operating procedures and controls has been established to ensure compliance, but violations occurred, but involve technical aspects of the law or result from oversight;
2
Trust Composite?
conduct affairs in a generally adequate manner;
policies and procedures governing important phases of administration or operations may be nonexistent or inadequately defined, but practices are generally appropriate to faithfully discharge the department’s fiduciary obligations
3
IT Composite Rating?
self-assessment practices are weak and are generally reactive to audit and regulatory exceptions;
repeat concerns may exist, indicating M may lack the ability or willingness to resolve concerns;
financial condition of the service provider may be weak and/or negative trends may be evident;
while financial or operational failure is unlikely, increased supervision is necessary;
formal or informal supervisory action may be necessary to secure corrective action
3
IT Composite Rating?
S&S performance;
modest weaknesses, corrected in normal course;
RM processes adequately identify and monitor;
strategic plans may require clarification, better coordination or improved communication throughout, so M anticipates but responds less quickly to changes in needs
2
How do you cite apparent violations of Part 326 for BSA?
(b) (1) program weaknesses
(b) (2) CIP weaknesses
(c) cited for specific pillar
Meeting with D- Composite 1 or 2?
36 months or more since the last such meeting
M is rated 3,4, or 5
Any 2 components are 3,4, or 5,
Any component is 4 or 5
Could be B committee if the committee influences policy, meets regularly, consists of reasonable outside representation, and reports regularly to the full B.
Composite Rating?
may be significant non-compliance with laws and regs;
RM practices unacceptable;
close supervisory attention required;
formal EA necessary;
poses risk to the DIF;
failure a distinct possibility
4
What are the CRA ratings?
Only Saban Needs Saving
Outstanding
Satisfactory
Needs Improvement
Substantial Non-Compliance
What type of business fall under Phase I BSA exemptions?
Banks
U.S. dept or agency
Entity established by a U.S. state or political subdivision
Stock traded on the NYSE, NASDAQ (or a sub if 51% owned by the publicly-traded entity)
Compliance Rating?
operating procedures and controls aren’t effective and require strengthening, may be accomplished by designating a CO and implementing a comprehensive and effective compliance program; by identifying marginal compliance early, additional supervisory measures can eliminate violations and prevent further deterioration
3
Meeting with D - Composite 3?
Quorum required
What is the CMP penalty for late or false Call Reports? Inadvertent, not inadvertent, first/second offense, false
Inadvertent: $3,200/day (T1)
Not inadvertent: $32,000/day
Late Filing:
Tier 1: $3,200/day
First Offense: $330/day for 15 days then $600/day
Second offense (within 5 qtrs): $550/day for first 15 days then $1,100/day
Tier 2: $32,000/day
False T1: $3200/day T2: $32,000/day
Knowingly or recklessly with disregard: lesser of $1,425,000 or 1% TA.
IT Composite Ratings?
M doesn’t address the technological needs of the entity;
M doesn’t correct audit and regulatory concerns;
financial condition of the service provider is poor and failure is highly probable due to poor operating performance or financial instability;
ongoing supervisory attention is necessary.
5
What are the min requirements of Trust Department Management?
Board involvement
Trust dept needs to be its own separate department with trust assets separated from the bank
Must have separate books and records from the bank and reflect all activities
Trust Composite?
some problems of relative significance may exist, but none are of such importance as to pose a threat to the trust beneficiaries or to the soundness of the bank;
M is adequate;
the supervisory response is limited to follow-up on correction of criticizable features.
3
How many days prior must the FDIC be notified of a change in control in an institution?
60 days
IT Composite Rating?
some degree of supervisory concern from moderate to severe weaknesses;
if weaknesses persist, further deterioration in the condition and performance of the bank or service provider is likely;
RM processes may not effectively identify risks and may not be appropriate;
strategic plans are vaguely defined and may not provide adequate direction for IT initiatives, so M often has difficulty responding to changes in needs of the entity;
3
What point in the CMP point scale will penalties be accessed?
individuals: > 40
Institutions: > 60
What is the deadline to file a SAR?
Within 30 calendar days of detecting criminal activity
If unable to identify a suspect within 30 days, can delay reporting for another 30 days
When is CTR filed?
Currency transaction over $10K
deposits, withdrawals, exchanges, or transfer
Change in control - what is the definition of control?
Rebuttable presumption?
Acquiring person will own, control, of hold power to vote 25% or more of any class of voting securities of the institution
Rebuttable presumption: Acquiring person or persons will own, control, or hold power to vote 10% or more of any class of voting securities and if:
the institution has securities registered under SEC, or no other person will own, control, of hold the power to vote a greater percentage of that class of voting securities.
Composite Rating?
immediate outside financial or other assistance is needed to remain viable;
ongoing supervisory attention is necessary;
pose a significant risk to DIF;
failure highly probable.
5
Calculate exam interval
Start counting: from the date the ROE was submitted by the EIC, or 60 days from the LX start date, whichever is less.
Why are CMPs assessed?
Punish the violator and deter future violations
Compliance Rating?
needs strongest supervisory attention and monitoring; substantial non-compliance with consumer statutes and regs; M has demonstrated its unwillingness or inability to operate within the scope of consumer statutes and regs
5
What are the minimum requirements for CIP?
name
DOB
Address
SSN/TIN
Composite Rating?
Fundamentally sound;
no component worse than 3;
moderate weaknesses;
well within the B and M’s capabilities and willingness to correct;
stable and are capable of withstanding business fluctuations
2
What is the statute of limitation for 8(e) and CMP actions?
5 years of the transaction that is the cause of the action, but in a court case 5 years from time of loss
CTR required info?
6 things
Name
Address
SNN/TIN
DOB
Account #
Amount and description of transaction
When should a limited scope exam be done?
Change in risk profile
Monitor compliance with a corrective program
Investigate unusual or adverse situations
Determine progress in correcting deficiencies
Assess compliance with supervisory requirements established through an order
What are the primary factors in determining CMP assessment amounts?
FIG-AG
Financial resources of the individual charged
Involvement of individual charged
Gain to the individual
Amount of loss
Gravity of the violation
What are the IT components that are rated?
MADS
Management
Audit
Development and Acquisition
Support and Delivery
Trust Composite?
such problems pose a threat to beneficiaries, and if left unchecked, could evolve into conditions that could ultimately undermine public confidence in the bank;
such departments require special supervisory attention.
4
314 (a) vs 314 (b)
314 (a) mandatory information sharing between U.S. Govt and financial institution
314 (b) voluntary information sharing between financial institutions
IT Composite Rating?
critically deficient;
in need of immediate remedial action;
serious weaknesses may exist throughout the org.
RM processes are severely deficient and provide M little or no perception of risk;
strategic plans don’t exist or are ineffective;
M and the B provide little or no direction for IT initiatives
5
