SDBA eNews

April 21, 2022

ABA names new head of congressional relations and legislative affairs

The American Bankers Association has selected Kirsten Sutton to serve as EVP of congressional relations and legislative affairs. She succeeds James Ballentine, who is retiring after 22 years with the association.

Since joining ABA in 2020, Sutton has been executive director of ABA’s Card Policy Council, leading advocacy efforts on card and payments issues. In her new role, Sutton will oversee the association’s bipartisan team responsible for engaging lawmakers and their staff on policy and legislative issues affecting banks and the communities they serve. She starts on May 9.

“Kirsten has an incredible passion for advocacy and a deep appreciation for the essential role banks of all sizes play in supporting local communities and the broader economy,” said ABA President and CEO Rob Nichols. “Her significant experience on the Hill, at the Consumer Financial Protection Bureau and within ABA make her ideally suited for this critically important position.”

Sutton was chief of staff for former CFPB Director Kathy Kraninger. She also served as chief of staff for Acting Director Mick Mulvaney in 2018. Prior to the CFPB, Sutton spent more than a decade on Capitol Hill, most recently as majority staff director of the House Financial Services Committee.

FSB chair: Invasion of Ukraine has ‘profoundly changed’ global financial markets

Ahead of a meeting today, Klaas Knot, chair of the Financial Stability Board, sent a letter to G20 finance ministers and central bank governors addressing financial stability issues caused by the invasion of Ukraine. The letter also outlined FSB’s plans to address emerging vulnerabilities caused by the conflict.

Areas covered in Knot’s note include links between commodity markets and the rest of the financial system; commodity derivatives markets; cyber response and recovery capabilities; vulnerabilities in emerging markets related to external financing; and the development of a comprehensive picture of leverage in the financial system. Knot said that FSB is responding to current financial stability challenges in two ways: by monitoring current market developments and emerging vulnerabilities, with a focus on resilience, and assessing potential vulnerabilities, focusing on commodity markets, margining and leverage.

Current financial stability challenges “reinforce the importance” of the Basel, Switzerland-based organization’s policy work in financial risk and climate change, the resilience of nonbank financial intermediation (FSB’s term for “shadow banking”), and crypto-assets and cyber risks, according to Knot.

“Russia’s invasion of Ukraine is creating headwinds for the global economic recovery, through highly volatile commodity prices as well as indirectly, through added upward pressure on inflation and interest rates,” he said. “The uncertain economic outlook, alongside rapid structural shifts in the financial system related to digital innovation and climate change, may result in new vulnerabilities that call for coherent policy responses across sectors and jurisdictions.”

SBA Provides Clarification on Maturing PPP Loans

The Small Business Administration recently clarified that it is released from liability on its guarantee of a Paycheck Protection Program loan if the lender has failed to request that SBA purchase the guarantee within 180 days after maturity of the loan.

However, if the lender is conducting liquidation or debt collection litigation in connection with a loan that has matured—including where a forgiveness decision is pending within SBA—the agency will not be released from its guarantee unless the lender fails to request that SBA purchase the guarantee within 180 days after the completion of the liquidation or debt collection litigation. If SBA’s decision is to decline forgiveness or only partially forgive the loan, the lender will then have 180 days from the date of the forgiveness decision to request that SBA honor the guaranty. For more information contact [email protected].

Bank Robbery Deterrent Stickers Available from the FBI

Sara Gould, Intelligence Analyst with the FBI Minneapolis Field Office, reached out to the SDBA re: the availability of Bank Robbery Deterrent Stickers. Gould says these stickers are available to member banks to utilize in lobbies and/or ATMs. If you're interested in receiving stickers, please contact the SDBA at [email protected] by Friday, April 29, 2022, with your contact information and the quantity needed, and we'll forward your request on to Sara.

FBI Report: Multi-State Check Thefts Targeting Religious Institutions and Exploiting Mobile Banking Applications, Consistent with Romanian Organized Crime Tactics

The following was provided by our friends at CISA:

The FBI Kansas City Field Office, in coordination with FBI Omaha, FBI Columbia, the Criminal Investigative Division, and the Office of Private Sector (OPS), prepared this LIR below to alert the financial sector and religious organizations about the multi-state theft and fraudulent negotiation of checks made payable as donations to religious organizations. Based on arrest information since late 2020, known Romanian organized crime (ROC) tactics, and account openings with Romanian documents, this activity is most closely linked to ROC groups. Thefts are generally successful, as donors expect their checks to clear and do not realize the church never received them until reviewing donation statements months later.

To facilitate the fraud, criminal actors open multiple financial accounts, often with fraudulent identification, and use ATM deposits and a remote capture deposit feature of mobile banking applications. As this scheme continues to yield profits, groups will likely extend their efforts to other states, resulting in millions of dollars in losses. Read the full report here.

SDBA Closed today from 11 a.m. to 3 p.m. for 'This is How We Roll' in Pierre

Just a heads up that SDBA staff will be out of the office today from about 11 a.m. to 3 p.m. CDT as we're hosting our inaugural 'This is How We Roll' meeting in Pierre! Any messages left for us will be returned when we return to the office later this afternoon. If your business is urgent, please email [email protected] and we'll respond to you ASAP. Thank you for understanding! 

SDBA Scholarships for GSB-Madison Due on May 2

Since 1945, the Graduate School of Banking at the University of Wisconsin-Madison (GSB) has helped develop banking leaders through a program of advanced management education. Today, GSB is widely recognized as the nation's leading and most progressive banking school, offering a comprehensive course of study that focuses on meeting the changing needs of today's bank manager. GSB is the only graduate banking school in the nation that relies on its alumni, Banker Advisory Board and Academic Committee to create a unparalleled learning and networking experience. GSB is sponsored and governed by the Central States Conference of Bankers Associations in partnership with the University of Wisconsin-Madison, and has been the school of choice for more than 23,000 bankers, with good reason. 

The SDBA has a scholarship available to students who are entering their first year at GSB. The total value of the scholarship if $4,500 or $1,500 for each year of attendance. Click here for full details and to apply for the scholarship. Click here to learn more about GSB, July 31-August 12, 2022 and to register.

SDBA to Host Crypto Webinar - May 9-10

Bitcoin, Crypto, Blockchain, NFTs… In the last few years, these words and concepts went from discussions had on the fringe to common, everyday conversations. Join us, in partnership with the ABA, NDBA and Wyoming Bankers Association, on May 9th and 10th as we turn to our distinguished panel of experts to help demystify the latest information surrounding the future of money and help financial services professionals navigate this new reality. To register and review the full schedule, click here.

  Compliance Alliance logo

Compliance Alliance – QUESTION OF THE WEEK:

Q. We have a designated disaster area close by and were wondering which activities in these areas would qualify for CRA Community Development?

A. There are a variety of activities relating to designated disaster areas (DDA) that may qualify. Loans, investments/donations, and services that revitalize or stabilize DDAs may be eligible for CRA consideration if the activities (1) help attract new or retain existing businesses or residents; and (2) are related to disaster recovery. For example, qualifying activities could include a loan to a business affected by the disaster that would otherwise have to close; an investment in a municipal bond that will rebuild essential community buildings that were destroyed by the disaster; providing financing for rebuilding needs; or delivering financial expertise to an organization providing housing for displaced residents. The activities must generally occur within 36 months of the disaster declaration to be eligible to receive consideration; however, the agencies can extend this period for exceptional situations, such as where there is a demonstrable need in a particular DDA that requires longer-term assistance. Banks subject to CD evaluation are encouraged to monitor and document activities in DDAs that may be considered in their next CRA exam.

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 [email protected] and ask for our Membership Team.

Review Alliance – DID YOU KNOW?

Did you know that the loan number should be documented on all Promissory Notes?

• It is recommended that the loan number be documented to help ensure that files are kept organized.

• This will also allow for ease of access when locating files in the case of default or foreclosure.

Review Alliance, an independent group of compliance specialists offering banks deep-dive audits of their existing transactions, recommendations about program enhancements or guidance on future safety and soundness. In 2020, we added Virtual Compliance Officer, a new shared service-model using bank-dedicated compliance officers; perfect for monitoring and guiding your bank remotely. To learn how to put them to work for your bank, call (833)-683-0701or email [email protected] 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.