Regulations, Legislations, Standards Flashcards
Accounting Standards Codification (ASC)
The detailed set of rules in the U.S. referred to as Generally Accepted Accounting Principles (US GAAP), that are developed, agreed upon, and published in the form of ASC Topics by the Financial Accounting Standards Board, an independent, self-regulating organization formed in 1973.
Accredited Standards Committee (ASC) X12 822
A major standardized format currently in use for the transmission of commercial account analysis information and used primarily by US financial institutions. The ASC X12 title is Account Analysis Transaction Set 822.
Bank Secrecy Act of 1970 (BSA)
A US legislative act under which US banks (and, in many cases, companies and individuals) are required to perform due diligence by determining a customer’s identity and monitoring transactions for suspicious activity. The primary intent of the BSA is to deter money laundering and the use of secret foreign bank accounts.
Basel Capital Accords
A series of recommendations, issued by the Basel Committee on Banking Supervision, regarding the creation of international standards and regulations for how much capital financial institutions must put aside to reduce risks associated with investing and lending, as well as operational risk. There are currently three sets of Basel Capital Accords, referred to as Basel I, Basel II, and Basel III.
Chapter 7 Bankruptcy
A US bankruptcy petition for liquidation filed by a company, which protects the debtor from legal actions by creditors. In a Chapter 7 bankruptcy, all remaining assets are liquidated, and the company ceases to exist.
Chapter 13 Bankruptcy
A US bankruptcy petition filed by a consumer that allows for the adjustment of debts.
Chapter 11 Bankruptcy
A US bankruptcy petition filed by a company that allows it to reorganize under court protection to restructure debts and emerge from bankruptcy after meeting certain conditions imposed by the court.
Check Clearing for the 21st Century Act of 2003 (Check 21)
A US law that provided the basis for electronic clearing of checks by allowing the substitution of a copy or image of a check for the original document in the clearing process.
Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act)
A US law designed to protect consumers from arbitrary pricing and notification practices by credit card companies.
Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA)
A US legislative act that provided for a phase-out of interest rate ceilings for financial institutions, mandated that all depository institutions hold reserves at the Federal Reserve (the Fed), made Fed services such as the discount window and check clearing available to all deposit-taking institutions, and mandated that the Fed price or eliminate its float in the check-clearing system. The act is also referred to as the Monetary Control Act.
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
Legislation enacted in the US in response to concerns related to the financial services industry in the wake of the global financial crisis of 2007-2009. The act had a major impact on the regulation of banks and other financial institutions, and brought financial consumer protection under a single authority.
Electronic Signatures in Global and National Commerce Act of 200 (E-Sign Act)
US legislation that was enacted to support electronic commerce (e-commerce) initiatives and grant digital signatures the same legal status as handwritten ink signatures. It establishes the legal certainty of e-commerce transactions and provides a measure of confidence around the enforceability of electronic transactions.
European Market Infrastructure Regulation (EMIR)
An EU regulation intended to increase the stability of the over-the- counter (OTC) derivatives market throughout Europe. EMIR implements reporting and clearing obligations for OTC derivatives analogous to the requirements of the Dodd-Frank Act in the US
Financial Accounting Standards (FASs)
The former name of US Accounting Standards Codification (ASC) Topics
FinCEN Customer Due Diligence (CDD) Rule
A US regulation written by the Financial Crimes Enforcement Network (FinCEN) that requires FIs to adopt policies and procedures to identify and verify both customers and beneficial owners of the companies when opening bank accounts, with beneficial owners defined as those who either have an ownership of 25% or more of an organization, or who control the organization. FIs are also required to report any suspicious transactions.
