SDBA eNews: September 15, 2016

In This Issue

Webinar on Major FFIEC Information Security Handbook Overhaul

Nearly one year after releasing an updated IT Management Booklet (Nov. 10, 2015), the FFIEC has updated its cornerstone handbook, the Information Security (IS) Booklet. While the IT Management Booklet provides guidance around IT operations management and oversight, with a focus towards top-down management, the IS Booklet is geared toward the meat-and-potatoes of the information security program and risk management processes.

The Graduate School of Banking at the University of Wisconsin-Madison is offering the webinar "Major FFIEC Information Security Handbook Overhaul" on Sept. 29, at 10 a.m. CDT. Presenter Chad Knutson, senior information security consultant with Secure Banking Solutions, will review the changes and new expectations for financial institutions.

The cost of the webinar is $159, and a recording will be available through Dec. 29. Learn more and register.

GSB Bank Technology Security School Deadline Nearing

The deadline to register for the Graduate School of Banking at the University of Wisconsin-Madison's Bank Technology Security School is Sept. 23. The school will be held Oct. 23-28, 2016, at the Fluno Center for Executive Education.

This one-week school is designed by, and especially for, information security officers in the financial industry. The state-of-the-art program will broaden attendees' understanding of the business of banking including key drivers of bank profitability, along with an in depth, interactive and hands-on study of the latest IT security techniques and strategies. The school uses a mix of lecture, small group discussions and interactive computer labs.

Learn more and register.

Meade County Provides Answers to Floodplain Questions

Want to know if a property is in the special flood hazard area, check the Meade County Equalization & Planning Office's website.

The site provides information about the county’s flood insurance rate map including a digital copy of the special flood hazard area (SFHA), flood zones, base flood elevations (where available), floodway data, flood insurance, special rules for building in the floodplain and ideas for protecting property from flood damage.

The Meade County Equalization & Planning Office also has copies of FEMA elevation certificates on buildings constructed or substantially improved in the floodplain since January 2014. Questions, call. 605.347.3818.

Question of the Week

Does section 232.8(e) of the MLA prohibit the bank from exercising the right of set-off?

Answer: No—the Department of Defense clarified in its recent interpretive rule that as long as the bank is otherwise meeting the MLA’s requirements and the right of set-off is allowed by state law, the MLA itself does not prohibit the bank from exercising its right of set-off on a covered borrower’s account.

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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 DeMers, SDBA, at 800. 726.7322 or via email.

State of SD Offers Training for New Online Business Filing System

The South Dakota Secretary of State Office has scheduled seven webinars to demonstrate how its new online business filing system will function before it goes live on Nov. 14. After the webinars, customers/users will have the opportunity to access the new system in a test environment and review how it functions.

The webinars will be held:

  • Webinar 1: Tuesday, Sept. 20, 9 a.m. CDT    
  • Webinar 2: Tuesday, Sept. 20, 1 p.m. CDT
  • Webinar 3: Wednesday, Sept. 21, 10 a.m. CDT              
  • Webinar 4: Wednesday, Sept. 21, 2 p.m. CDT
  • Webinar 5: Thursday, Sept. 22, 11 a.m. CDT
  • Webinar 6: Thursday, Sept. 22, 3 p.m. CDT
  • Webinar 7: Monday, Sept. 26, 3 p.m. CDT

The webinars will last 30 to 45 minutes, and a limited number of seats are available on each webinar. RSVP to [email protected] with your contact information and which session you would like to attend by Monday, Sept. 19. Participants will receive an email containing the connection link and further information.

The new online business filing system is planned to go live at 8 a.m. on Monday, Nov. 14. The IT team will shut down the business services portion of the Secretary of State's website at 5 p.m. CST on Friday, Nov. 11, and no data will be available over the weekend. Online filings going live are business formation articles for limited liability companies and corporations (both domestic and foreign), annual reports and requests for certificates of good standing.

Questions, call the Secretary of State's business office at 605.773.4845 or email [email protected].

OCC Flags Supervision Priorities for 2017

The OCC yesterday released its bank supervision operating plan for fiscal year 2017, identifying what each of the agency’s supervisory operating units will focus on for the new federal fiscal year starting on Oct. 1. Overall, the OCC will develop supervisory strategies for commercial and retail loan underwriting, business model sustainability and viability, operational resilience, anti-money laundering compliance management and change management processes to address regulatory changes.

In coordination with examiners at other regulatory agencies, the OCC’s midsize and community bank supervision team will focus on: credit underwriting, particularly risk layering, fair lending implications and new products; stress testing for oil and gas-related portfolios; strategic risk; operational risk, including third-party relationships and the Cybersecurity Assessment Tool; AML compliance; change management in consumer compliance; interest rate risk modeling; ALLL; and horizontal risk assessments.

For larger banks, the agency will look at responsiveness to matters requiring attention; ongoing operational risk management; avoiding AML compliance that limits financial inclusion; change management in consumer compliance; and complex credit underwriting, among others. Read the report.

ABA Offers Resources for Cybersecurity Awareness Month

To mark National Cybersecurity Awareness Month in October, ABA has developed a number of resources to help bankers promote consumer awareness about cybercrime. The campaign materials focus on how consumers can protect themselves, their small businesses, their identities and their mobile devices online.

The resources--available at a social media toolkit to help banks communicate with their customers about cybersecurity, customizable tip sheets and news releases.

Also this month, ABA’s Get Smart About Credit Day will include a “protecting your identity” component that will coincide with ABA’s National Cybersecurity Awareness Month efforts. View the resources.

Hensarling's Choice Act Clears Committee with Durbin Repeal Intact

The House Financial Services Committee on Tuesday approved the Financial Choice Act, a major regulatory reform bill introduced by committee chairman Jeb Hensarling (R-Texas). It passed by a vote of 30 to 26, with no Democrats voting in favor and one Republican, Bruce Poliquin of Maine, voting against as well.

ABA EVP James Ballentine thanked Hensarling for introducing the bill.

“It is clear that regulatory reforms are needed to stop banks from continuing to disappear--including 1,708 institutions since the passage of Dodd-Frank--and allow them to continue to serve their customers and communities,” he said. “We applaud the chairman for including several important measures in his Financial Choice Act, including a repeal of the Durbin Amendment, an ill-conceived government price control that has reduced access to low-cost bank accounts; the TAILOR Act, which requires that regulations be tailored to fit an institution’s business model and risk profile; and other provisions that would eliminate unnecessary compliance problems and costs.”

With limited time remaining before the November elections, the Financial Choice Act is not expected to be passed by Congress this year. However, it may serve as a template for regulatory relief legislation in the new Congress. Read Ballentine’s statement.

ABA, Trades Outline Principles for Flood Insurance Reform

In a letter to Senate Banking Committee leadership on Monday, ABA and other financial services and insurance trade associations outlined principles for regulatory reform with respect to flood insurance. The groups urged lawmakers to seek solutions that would increase the percentage of property owners who purchase flood insurance and called for long-term reauthorization of the National Flood Insurance Program, which is set to expire next September.

Specifically, the groups recommended that Congress focus on improving the customer experience through better disclosures, more policyholder education, reaffirmation of reimbursement rates, and simplified underwriting and claims handling. They also encouraged lawmakers to consider enhancing and fostering market oriented solutions; resolve issues related to mitigation; and ensure adequate mapping funding to enable consumers, communities and the private sector to accurately evaluate, mitigate and price flood risk. Read the letter. For more information, contact ABA's Joe Pigg or Sarah Ferman.

On a related note, the Federal Emergency Management Agency (FEMA) released an updated Standard Flood Hazard Determination Form (SFHDF) on July 27, 2016. The new form replaces the previous form,  which expired on May 30, 2015. 

According to FEMA website, the old form can continue to be used during the phase-in period of the new form. The website does not yet provide a specific transition period but indicates the page will be updated with additional information soon. ServiceLink National Flood will start using the new form effective Sept. 24, 2016. Read more.

OCC Newsletter Focuses on Affordable Housing in Indian Country

The OCC’s Community Developments Investments newsletter published last Friday examines how banks are using the Department of Housing and Urban Development’s Title VI Loan Guarantee Program to provide affordable housing financing in Indian country. The Title VI program provides an additional source of funding for Indian tribes receiving federal Indian housing block grants for affordable housing activities. Read the newsletter.