Regulatory Environment Flashcards
Payment system governed by the ACH Rules, UCC 4, UCC 4A, Electronic Fund Transfer Act, OFAC, Regulation E, The Right to Financial Privacy, Regulation D and Regulation CC.
ACH Network
Payment system governed by UCC 4A, OFAC, Regulation J and Regulation CC.
Wire Transfer Payment System
Payment system governed by the Electronic Fund Transfer Act, Regulation Z, Card Association Rules and Fair Credit Billing.
Card Payment System
Payment system governed by the Expedited Funds Availability Act, UCC 3, UCC 4, OFAC, Regulation CC and Regulation J.
Check Payment System
Implements the Expedited Funds Availability Act of 1987.
Regulation CC
Transactions governed by UCC 4A.
Commercial wholesale credits, including wire transfers and CCD/CTX credits
Governs the clearing and settlement of ACH credit and debit items by the Federal Reserve Banks, ODFIs and RDFIs.
Federal Reserve Bank Operating Circular 4 (OC 4)
Provided for within the Debt Collection Improvement Act of 1996 requiring that virtually all non-tax related payments made by the federal government be made via electronic funds transfer.
The Electronic Funds Transfer (EFT) Mandate
Governs check collection through the Federal Reserve Bank and wire transfer.
Regulation J
Governs federal government payments made via the ACH Network.
Title 31 of the Code of Federal Regulations (CFR) Part 210
Provides rules for financial institutions that use EFT to process federal tax payments through EFTPS.
Title 31 of the Code of Federal Regulation (CFR) Part 203
Governs the handling of payments for the Bureau of Public Debt made through the ACH Network.
Title 31 of the Code of Federal Regulation (CFR) Part 370
Establishes reserve requirements and identifies non-transaction accounts.
Regulation D
Implements the Electronic Fund Transfer Act (EFTA).
Regulation E
Designed to help consumers “comparison shop” for credit by requiring disclosures about terms and cost.
Regulation Z
Administers economic sanctions and embargo programs that require assets and transactions involving the interest of targeted parties be blocked or frozen.
Office of Foreign Assets Control (OFAC)
Any agreement, authorization, Written Statement of Unauthorized Debit or other record that requires signatures or similarly authenticated methods may use an electronic signature in conformity with the terms of this Act.
Electronic Signatures in Global and National Commerce Act (E-Sign Act)
Primary source of rules for the commercial ACH Network defining obligations and liabilities of Participating DFIs.
Nacha Operating Rules (a.k.a. ACH Rules)
Act, also known as the Financial Services Modernization Act of 1999, required federal banking agencies to establish information security standards for financial institutions.
Gramm-Leach-Bliley Act (GLBA)
Act requires financial institutions to assist U.S. government agencies to detect and prevent money laundering.
Bank Secrecy Act (BSA)
Act broadened the scope of the Bank Secrecy Act to focus on terrorist financing.
USA PATRIOT Act
Program requiring financial institutions to verify the identity of a person seeking to open an account, to maintain records of the information used to verify an identity and to consult government known or suspected terrorist lists.
Customer Identification Program (CIP)
Governs the treatment of a consumer’s non-public personal information by financial institutions.
Regulation P
Defines a negotiable check and types of endorsements.
Uniform Commercial Code Article 3 (UCC 3)
