SDBA eNews

March 24, 2022

Podcast: What Banks Need to Know about Russia Sanctions Compliance

In the wake of Russia’s invasion of Ukraine, western governments have imposed unprecedented financial sanctions on individuals, businesses, banks and governments in Russia, Belarus and Russian-occupied areas of Ukraine. With new sanctions continuing to be announced and a rolling series of compliance deadlines, the latest episode of the ABA Banking Journal Podcast — sponsored by IntraFi Network — features ABA VP Rob Rowe for a discussion of:

  • The overall view of sanctions and what banks should be anticipating in the near future.
  • How banks of all sizes, including small banks, can have exposure to sanctionable transactions.
  • The role of software — and regular updates to it — as well as correspondent banking relationships in facilitating sanctions compliance.
  • Red flags for sanctions evasion bankers should watch out for.

Click here to listen.

Podcast: Step-by-Step IT Transformation at a Community Bank

March is Women's History Month and the ABA has curated useful tools and tips for women in the banking industry. One item, a podcast with Pinkaj Klokkenga, Chief Technology Officer, Old Point National Bank. At a community bank with limited staff and resources, tech transformation is all about setting priorities. Klokkenga discusses how she is setting and advancing these priorities at her Hampton Roads area community bank. In the episode, Klokkenga discusses:

  • Her experience in IT and at the Federal Reserve Bank of Richmond before joining a community bank.
  • Early IT wins for Old Point National Bank in the COVID era, including online scheduling, ATM upgrades to be ITM-compatible and revamping online account opening.
  • How to identify the tech skillsets a community bank needs and rely on vendors for support.
  • How to balance responsibility for client solutions with the lines of business.
  • In a job-seeker’s market, the importance of offering top IT talent a range of engaging and creative work opportunities.

Click here to listen.

White House Urges Private Sector to ‘Double Down’ on Cyber Defenses

On Monday, President Biden reiterated the call for the private sector to remain vigilant against the threat of Russian cyberattacks targeting critical infrastructure entities, noting that “we need everyone to do their part.” The White House also issued a fact sheet outlining specific steps companies can take to strengthen their cyber defenses.

In a press conference Tuesday afternoon, Deputy National Security Adviser Anne Neuberger said that she does not see a more significant threat to the banking sector compared to other critical infrastructure entities, and spoke to the efforts by the industry and the Treasury department to prepare for a cyberattack. “The U.S. banking sector truly takes cyber threats seriously, both individually and as a group,” Neuberger said. “Treasury has worked extensively with this sector to share sensitive threat intelligence at the executive level, at the security executive level [and]repeatedly at the classified and unclassified level. I do not believe they’re more at risk, but it is always important for every critical infrastructure sector to double down in this heightened period of geopolitical tension.”

In comments at the American Bankers Association’s Washington Summit earlier this month, CISA Deputy Director Nitin Natarajan told bankers that his agency has not yet seen any rise in Russian cyberattacks targeting the banking sector, but urged banks to remain vigilant and report any suspicious activity.

CISA Tip of the Week - Account Management

How does your organization manage the disabling and deleting of accounts after employees and contractors leave?  At a minimum, passwords should be reset to a new, unique passphrase immediately upon departure. Actively manage the offboarding of staff! Go to for more useful information to protect your bank, customers, friends and family against Russian cyber threats.

National School for Beginning Ag Bankers Nearing Capacity

March is National Ag Month and it's the perfect time to register for the National School for Beginning Ag Bankers, June 20-23 at Black Hills State University in beautiful Spearfish, S.D. However, we are almost full so register ASAP. Ag school is an intensive curriculum designed to train in all facets of agricultural lending with emphasis on credit analysis, credit scoring, risk rating, problem loans and group case study. The purpose is to prepare ag bankers to make better loan decisions. Ag bankers with zero to three years of experience should attend this school. Join your colleagues and our esteemed panel of instructors as you delve into ag lending and all that encompasses. Topics such as the ag economy, balance sheet and working capital analysis, earnings analysis, futures and options, and cash flow analysis will be covered. You will also learn about loan servicing and risk management and management assessment and customer profiling.

The curriculum includes more than 25 hours of hands-on instruction with problem-solving approaches to real life situations. Active involvement in a bank simulation will help ag bankers better understand how decisions they make will impact all departments within the entire operation of their banks. Sessions will be presented in a relaxed, open format seminar approach that encourages you to interact with other students and faculty. Click here to view the full agenda and to register. If spots fill up, we will implement a waiting list.

New Account Documentation and Compliance Seminar - April 12

Managing risk is the #1 priority for all financial institutions, and it all starts at the new account desk. If a criminal cannot get in, they cannot steal from your organization and community.  Well-trained new account personnel and universal bankers who recognize and stop attempted dishonest activity are the first line of defense in protecting a financial institution from fraudsters. Unfortunately, new account personnel are often trained "on the job," which can result in an environment of potential vulnerability and unnecessary losses for the financial institution. Additionally, with constant new regulations, the need for ongoing compliance training is paramount to maintain diligence and update processes and procedures. This full-day workshop, customized to South Dakota state law, teaches essential new account opening procedures, best practices, and compliance requirements. It answers complex questions asked by customers and staff while focusing on vital information for every new account type. Click here to view the full agenda and to register.

This is How We Roll: SDBA is Hitting the Open Road!

Ever wonder, "what is the SDBA up to these days?" The answer to that question is coming to a town near you! The SDBA team will be hitting the open road, making stops in Pierre, Sioux Falls, Aberdeen and Rapid City, to discuss with our members, partners and legislators, about what the SDBA has going on, our plans for going forward, and how to engage as we move the needle forward in South Dakota’s banking industry. These meetings will be FREE to attend, however, we are requesting registration ahead of time so we can order the appropriate number of lunches. Click here to view the schedule and register.

Named Scholarships for College Students are Due March 31!

The South Dakota Bankers Foundation annually offers five named scholarships awarded directly to students attending a South Dakota college who are pursuing a career in banking or finance. Applicants must be in their junior year, entering their senior year of college during the 2022-2023 school year. If you know of any students who could benefit from some financial aid, please share this opportunity with them ASAP! More than $14,000 in scholarship dollars are available and we don't want anyone to miss out.

  Compliance Alliance logo

Compliance Alliance – QUESTION OF THE WEEK:
Q. If the Bank does not use any type of credit report when denying deposit accounts, are we required to provide an adverse action notice?

A. If the bank did not use any type of credit report to deny the deposit account application, then an adverse action notice would not be required under the Fair Credit Opportunity Act or under Regulation B, assuming no extension of credit is involved. However, it’s important to consider that notice may still be required under the bank's internal policy, so the bank would want to check there as well and be consistent with what it has done in similar situations in the past.

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 and ask for our Membership Team.

For timely compliance updates, subscribe to Bankers Alliance’s email newsletters.

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Contact Natalie Likness, SDBA, at 605.224.1653 or via email.