Final Deadline Nearing to Order the 2024 Scenes of South Dakota Calendars!

The SDBA is still taking orders for the 2024 Scenes of South Dakota Calendar until September 18! This calendar features photos of South Dakota submitted by South Dakota bankers, their family members and customers.

These calendars are a great opportunity to thank your customers for their business and promote your bank or business. Your bank, branch or business' logo and name can be printed on each calendar to display in homes and businesses all year long.

The SDBA logo is also included to emphasize the strength and security of South Dakota’s banking industry. The Scenes of South Dakota Calendar is exclusive to SDBA member banks and associate members.

Place your order here for the 2024 Scenes of South Dakota Calendar!

If you have any questions, email Haley Juhnke or call the SDBA Office at 800.726.7322.

Register for IRA School | September 19-21 in Sioux Falls

The SDBA is hosting IRA School from September 19-21, 2023, in Sioux Falls, SD.

The SECURE Act impacts two main topics: RMDs and death distributions. IRA School will address these relevant changes. In addition, IRAs are one of the most complicated areas of bank personnel responsibility, and it is not possible to learn and understand everything. Continual education is necessary to ensure confidence. Working with IRAs is a process and must start with a strong foundation. This school can provide this foundation through a comprehensive curriculum.

For new IRA and experienced staff, this program is the quickest, easiest and most comprehensive coverage of IRAs and HSAs. The school will cover new and current IRA material, and previous topics covered at the school will be expanded.

For more information and to register, click here.

FDIC Needs to Improve Threat Information Sharing with Financial Institutions

The FDIC could improve the effectiveness of its processes to ensure that financial institutions receive actionable and relevant information about threats and vulnerabilities resulting from cyberattacks, financial crimes and natural disasters, the agency’s Office of Inspector General said in a report released yesterday.
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The report is a follow-up to a 2022 review that concluded the FDIC had not established effective processes to analyze and disseminate actionable threat information to the financial institutions it supervises. Also, ABA last year worked with the FDIC OIG to conduct a survey of interested association members on the value and effectiveness of the agency's program for sharing threat information.
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In the new report, which is partially redacted, the OIG still found the agency lacking in its capacity to share information about threats, both cyber and non-cyber related. The office made 10 recommendations to improve the FDIC’s processes, and the agency pledged to complete all corrective actions by March 31, 2024. They include improving controls over the recording of computer security incidents reported by banks and service providers, establishing procedures for sharing non-cyber-related threat information, and developing performance measures for the agency’s external threat sharing activities.

To view the article, click here.

Labor Department Releases Overtime Proposed Rule

The U.S. Department of Labor has released a proposed rule that would significantly increase the number of employees who are subject to the Fair Labor Standards Act’s overtime and minimum wage requirements. Under the proposal, employees who earn up to $1,059 per week, or $55,068 annually, would automatically be subject to these requirements. Current regulations issued in 2019 set the salary level at $684 per week, or $35,568 annually. Above that level, an employee may be exempted from federal overtime and minimum wage requirements if the employee performs certain duties.
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The proposal also would require DOL to automatically update the salary level every three years. In addition, the proposal would increase, to $143,988, the amount of income an employee must receive to be classified as a “highly compensated employee,” or HCE. An employee who earns a salary above the HCE threshold is subject to a less stringent “duties test” to be exempted from federal overtime and minimum wage requirements.
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The Partnership to Protect Workplace Opportunity, a critic of the proposal, believes “this rulemaking will lead to a substantial reduction in access to entry level executive, administrative and professional salaried positions. It will reduce opportunities, especially for recent graduates and younger professionals hoping to begin their careers.”

To read the proposal, click here.

FDIC Updates Equal Housing Lender Posters

FDIC-supervised institutions are required to maintain up-to-date Equal Housing Lender posters in branches, as required by the Fair Housing Act. The agency recently amended some details of the posters, including updating the name of the office to which complaints should be addressed, as well as adding the web address of the FDIC’s web-based complaint portal.

To access compliant posters in the FDIC online catalog, visit: https://www.fdicconnect.gov/Logon.aspx

FDIC Launches New Site for Consumer Compliance, CRA Exam Activities

The FDIC is launching a new “Banker Engagement Site” through its FDICconnect web portal, with the site functioning as the primary tool for exchanging examination planning and other information for the agency’s consumer compliance and Community Reinvestment Act activities. Specifically, the site will provide a financial institution’s authorized staff the ability to communicate with FDIC examination staff and respond to the information and document requests made during the supervisory process.
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Among its features, BES will give bank users the ability to collaborate with the FDIC’s examination team when responding to information and document requests, submit questions and comments to the examination team, and view submitted responses and documents. The FDIC’s existing tool to exchange examination information, the Enterprise File Exchange, will continue to be used in instances where the pre-planning for consumer compliance and CRA activity was initiated before the availability of BES and may be used in some additional circumstances, the agency said.

To read the article, click here.

To view FDICconnect, visit: https://www.fdicconnect.gov/index.asp

CISA News: CISA & FBI Takedown on the QakBot Malware

CISA, FBI and international partners executed a coordinated operation to disrupt QakBot infrastructure worldwide. Disruption operations targeting QakBot infrastructure resulted in the botnet takeover, which severed the connection between victim computers and QakBot command and control (C2) servers.

View the article here.

QUESTION OF THE WEEK

Q: A loan to purchase and renovate a dwelling to flip it for resale is not subject to HMDA reporting, correct?

A: If the loan is temporary and is designed to be replaced by permanent financing by the same or another borrower afterwards, it could potentially fall under the temporary financing exception below. That said, generally flipping a dwelling for resale will not be considered temporary financing as there are generally not plans to replace the loan with permanent financing at a later date.

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.

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