REGISTRATION OPEN: 2024 SDBA State Legislative Day |Wednesday, Feb. 14

Registration is OPEN for the 2024 SDBA State Legislative Day, held annually in Pierre at the Ramkota Hotel & Conference Center on Wednesday, February 14, 2024. This is your exclusive opportunity to actively participate in shaping the future of banking in our state. This gathering promises a day of insightful conversations, networking, and direct engagement with key policymakers.

The day will include an SDBA Legislative Committee meeting, lunch with comments from Governor Kristi Noem (invited), a fireside chat with Senator Mike Rounds (confirmed) and Senator John Thune (invited), an SDBA update, featured speaker V.J. Smith, the chance to visit with state legislators at the State Capitol, and an evening reception with state legislators and constitutional officers.

Click here to review the full agenda and register. If you need lodging while you are in Pierre, a block of sleeping rooms has been secured at the Ramkota and the Clubhouse Hotel & Suites, adjacent to the Ramkota. Act fast though, these blocks end on Friday, January 12.

REGISTRATION OPEN: Virtual Breaking Into Banking 101 & 201 | Feb. 22 & March 27

The SDBA is hosting two virtual Breaking Into Banking day-long webinars, the 101 on Thursday, February 22 and the 201 on Wednesday, March 27. 101: Fundamentals of Commercial banking can be intimidating because of its complexity and the risk-oriented nature of the work. This course is a clear and thorough introduction to the key concepts, terminology, and processes involved in credit and lending. It doesn’t assume much prior knowledge of the topic, so it’s ideal for those in their first year in the industry. Learners will walk away with a clear understanding of their job and how their specific role fits into the bank’s overall profitability goals. New credit analysts, lenders, and underwriters, as well as bankers who don’t do credit analysis but need a working knowledge of the process. 201: Analyzing Repayment Sources, is a 9-module online course, a “sequel” to the 101 course, and is best taken after completion of that course, though it is not a prerequisite. The 201 course includes a case study and dives deeper into topics covered in modules 4, 6, and 8 of the 101 course: analyzing a borrower’s balance sheet, income statement, collateral, and risk ratings. This course is most appropriate for credit analysts, lenders, portfolio managers and others who need skills in financial statement analysis and writing credit documents.

Registration for each of the courses is linked above, and pricing is based on individual participation. For questions or more information, contact the SDBA at [email protected] or 605.224.1653.

FinCEN begins collecting beneficial ownership information

The Financial Crimes Enforcement Network announced on Monday that it is accepting beneficial ownership information reports as required by the Corporate Transparency Act. Filing is free and can be completed online through the agency’s electronic filing system.

Companies created or registered to do business in the U.S. before Jan. 1, 2024, must file by Jan. 1, 2025. Companies created or registered to do business in the U.S. in 2024 have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective. BOI reporting is not an annual requirement. A report only needs to be submitted once, unless the filer needs to update or correct information, the agency said.

As for who can view that information, FinCEN in late December issued a final rule that implements a phased approach to BOI access, starting with a pilot program for a handful of key federal agency users in 2024 and then gradually expanding the list of authorized users. Financial institutions will gain direct access in the final phase of the rollout. The agency also adopted several changes to the final rule suggested by the American Bankers Association, including language allowing banks to use the information for a range of Bank Secrecy Act and sanctions compliance purposes.

Learn more about reporting on FinCEN’s BOI webpage.
Read FinCEN’s BOI compliance guide for small businesses.
Read a FinCEN fact sheet on the BOI access rule.

ABA: CFPB must conduct SBREFA review before overdraft, NSF fee rulemakings

The CFPB may not proceed with rulemakings on overdraft and NSF fees until it assesses the economic effects of the rulemakings on community banks and credit unions, as it is required to do under the Dodd-Frank Act, the American Bankers Association asserted in a joint letter with the Independent Community Bankers of America and America’s Credit Unions this week.

Under the Small Business Regulatory Enforcement Fairness Act, as amended by the Dodd-Frank Act, the CFPB must consider the effects on small businesses before it initiates a rulemaking that will have a “significant economic impact on a substantial number of small entities.” In its fall 2023 rulemaking agenda, the CFPB stated that it will soon issue proposals to regulate the charging of NSF fees using the CFPB’s authority to prevent unfair, deceptive or abusive practices, and to define overdraft fees as credit subject to the Truth in Lending Act and Regulation Z. The CFPB, however, has not initiated a SBREFA review for either rulemaking, signaling that it intends to skip this critical step in the rulemaking process.

ABA observed that, if the CFPB prohibits charging NSF fees under certain circumstances, the prohibition will apply to all banks and credit unions, regardless of asset size. If the CFPB writes a rule that subjects overdraft fees to Reg. Z, that regulation would affect overdraft protection services offered by all banks and credit unions because they would face market pressure to conform their practices to the CFPB’s rule.

Any rule issued by the bureau on overdraft or NSF fees will have “a significant impact on a substantial number of institutions with assets of $850 million or less,” ABA said, emphasizing that Congress “clearly directed” the bureau to initiate a SBREFA review before issuing notices of proposed rulemakings. Read the letter.

Update/Refresh/Confirm your SDBA Member Profile!

Start your new year off on the right foot with the SDBA by making sure your member profile is current! Login here and review key information such as your contact info, title, employer, and e-subscriptions! No profile? No problem! The SDBA can set one up for you. Click here to request one or reset your password. These profiles are how you stay informed with us, and how you register for all SDBA-hosted and sponsored events. Profiles are generated usually within 24 business hours. Contact Natalie Likness for more information or questions.

CISA News

Cybersecurity Return on Investment
Some considerations:
i. Identify potential losses. What’s the cost if Mr. Murphy visits? Lost productivity? Reputation? Legal? Client?
ii. Know your weaknesses and how they can be attacked. And address them.
iii. Cost savings from your investments

GOOD LUCK to the SDSU Jackrabbits at the FCS National Championship!

SDSU will represent South Dakota again in Frisco, TX, on Sunday, January 7 at the FCS National Championship against Montana. Watch live at 1:00 p.m. CST on ABC! Best of luck to the Jacks, and safe travels to all who are heading down south to Frisco!

QUESTION OF THE WEEK

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