ABA Daily Newsbytes: Trump wins second term; ABA to hold webinar on election results
WEBINAR: Friday, November 8, 2024 | 12:00pm CST
November 6, 2024
Former President Donald Trump has secured enough electoral votes to win the presidential election, according to race calls from major media organizations overnight. As he returns to office with a projected popular vote victory, Trump will also have a GOP Senate majority, flipping the chamber from Democratic control. However, too many House races were too close to call this morning to determine which party will control the lower chamber.
GOP challengers were projected to defeat Senate Banking Committee Chairman Sherrod Brown (D-Ohio), who was defeated by Bernie Moreno, and Sen. Jon Tester (D-Mont.), who was ousted by Tim Sheehy. Senate Banking Committee Ranking Member Tim Scott (R-S.C.) is in line to take over the committee’s chairmanship. Overall, the GOP is expected to have a minimum of 52 seats in the Senate, up from 49 in the current Congress. Results in six Senate seats remained uncalled as of this morning.
ABA President and CEO Rob Nichols congratulated President Trump and Vice President-elect JD Vance, as well as the Republican Senate majority, on their victories. “ABA and our member banks across the country look forward to working with the Trump-Vance administration and members of Congress in both parties to advance commonsense policies that support economic growth and allow banks to best serve their customers, clients and communities,” Nichols said.
ABA will host a free, members-only webinar to discuss the election results and their projected effects on banks Friday, Nov. 8, at 1 p.m. ET. The webinar will feature perspective from ABA President and CEO Rob Nichols, Chief Policy Officer Naomi Camper, EVP Jess Sharp, EVP Kirsten Sutton and Chief Communications Officer Peter Cook.
ABA Banking Journal: Final Rule Regarding Personal Financial Data Rights (Dodd-Frank Act Section 1033)
November 4, 2024 | Ryan T. Miller
Dodd-Frank Act Section 1033 affords consumers the right to access their financial records either directly or via an authorized agent (subject to certain exceptions), and the data sharing ecosystem has flourished in recent years. This ecosystem includes banks, credit unions, fintechs, and data aggregators.
In October 2024, the Consumer Financial Protection Bureau (CFPB or Bureau) finalized its first rule regulating the ecosystem. The CFPB previously finalized a portion of its 1033 proposal in June 2024 to create a process for recognition of standard setting bodies to demonstrate evidence of compliance with certain substantive requirements (see ABA's staff analysis of the partial final rule). ABA expressed support for the application of the Financial Data Exchange (FDX) pursuant to this framework. If approved, consensus standards issued by FDX would serve as an indicia (i.e., partial evidence) of compliance with standardized and machine-readable format requirements for developer interfaces.
The final 1033 rule contemplates different categories of ecosystem participants: 1) data providers; 2) third parties; and 3) data aggregators. While banks will be data providers under the rule, they may also elect to become third parties in order to access data based on consent. Third parties that comply with the prescribed procedures in the rule become "authorized third parties." "Data aggregators" are defined as a person that is retained by and provides services to the authorized third party to enable access to covered data. In addition, many data providers will also elect to utilize a service provider to operationalize the rule’s requirements.
Consumer consent is the key to unlocking access to the data, and the maximum duration of authorization is one year (it can be renewed). Moreover, the authorization can be revoked at any time. Data providers are permitted to offer a method to revoke all access (but not partial revocation).
The CFPB announced it will issue a small entity compliance guide (as ABA advocated), but the timing of the release is unclear. It is also considering an educational campaign for consumers.
ABA Banking Journal: FDIC issues regulatory relief guidance for New Mexico, South Dakota
November 5, 2024
The FDIC today released guidance with steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of New Mexico and South Dakota affected by severe storms and flooding.
The agency encouraged banks in affected areas to work constructively with borrowers experiencing difficulties due to severe weather, including extending repayment terms, restructuring existing loans or easing terms for new loans. The agency said banks may receive favorable Community Reinvestment Act consideration for community development loans, investments and services in support of disaster recovery. The FDIC also will consider regulatory relief from certain filing and publishing requirements.
FinCEN Releases Commercial on Beneficial Ownership Information Reporting
The Financial Crimes Enforcement Network this week released a new video and radio commercial to educate business owners on the new beneficial ownership information reporting requirements. It is part of a larger public outreach campaign by the agency, which includes a dedicated website and videos on BOI reporting.
FinCEN last month issued a notice to financial institution customers about BOI reporting, explaining why certain customers must report directly to the agency in addition to giving information to their banks, which are subject to the customer due diligence rule.
Beacom School of Business - Career Success Center: 2025 Speed Networking
January 22, 2025 | 1-3pm CST
The Beacom School of Business - Career Success Center invites you to attend our 2025Speed Networkingevent on Wednesday, January 22 from 1-3pm.This is a great opportunity for you to come on-campus and network with our students, especially May 2025 graduates and summer internship seekers. There is no cost to attend.
We will use a speed networking format where employers will have a round table set up and small groups of students will rotate to tables in 10 minute intervals until about 2:30pm. The last 30 minutes of the event will be an open networking reception for you and students to visit more in depth. During your 10 minutes you are welcome share information about your company and any full-time, part-time, or internship opportunities that you may have available. At the event you are more than welcome to collect student contact information to keep in touch with them. Also, feel free to bring any recruitment materials and promotional items you’d like to share with students.
If you're interested in attending this event, RSVPtoday as there are limited spots available. Registration is will close on Monday, January 13th.
GSB University of WI - Madison: Human Resource Management School
April 28-May 2, 2025 | Madison, WI
Today’s successful human resource professional in the financial services industry needs a clear understanding of critical human resource issues as well as a working knowledge of the business of banking. From recruitment to selection, performance management to career development, the human resource function has a direct impact on a financial institution’s productivity and bottom-line results.
That’s why GSB offers the Human Resource Management School, a respected one-week school that provides the foundation for new or veteran human resource professionals to tie together important issues in human resource management with an understanding of the business of banking.
Application sessions are built into the curriculum to help students better understand and apply concepts learned. This applied learning is a key benefit of participating that will give you important tools to implement immediately at your bank.
More and more demands are being placed on human resource professionals as banks realize the important role they play in a bank’s profitability. This is your opportunity to learn from respected industry experts about today’s key issues in human resource management and how they relate to the bank’s bottom line profits.
As a co-sponsor of the Graduate School of Banking at Colorado (GSBC), the South Dakota Bankers Association has partnered with GSBC to recognize community banks across South Dakota for their innovative approaches to serving their customers and communities with a new, nomination-based scholarship.
The scholarship is called the Bolder Banking Scholarship and is an extension of GSBC’s Bolder Banking campaign, which aims to highlight bold leaders in the community banking industry by sharing innovative information and ideas with fellow bankers.
The Bolder Banking Scholarship will afford the SDBA the opportunity to recognize and reward our member banks displaying innovative approaches to banking. GSBC will fund the scholarship for a rising star within the recipient bank to use toward tuition at GSBC’s Annual School Session. SDBA member banks may nominate themselves or another bank to be a Bolder Banking Scholarship recipient.
One of these bank-wide scholarships are given annually. To submit a Bolder Banking Scholarship nomination for your or another bank displaying innovative, out-of-the-box initiatives, complete the nomination form by February15. The recipient bank will be decided on by March 1.
LAST CALL!The IRA Update builds on the attendees’ knowledge of IRA basics to address some of the more complex IRA issues their financial organizations may handle. This course includes how the SECURE Act really changes our two biggest topics: RMDs and death distributions and discusses any pending legislation. This is a specialty session; some previous IRA knowledge is assumed. The instructor uses real-world exercises to help participants apply information to job-related situations.
Q: A new customer of ours does not have a photo ID due to their Amish religion & culture. For CIP purposes, how are we supposed to verify this customer’s identity?
A:While ultimately, this will be a risk-based decision determinate on the bank's own CIP and BSA / AML and CDD policies and procedures, the BSA does allow banks to establish procedures for the required verification of a customer's identity via non-documentary methods, which address those situations in which an individual is unable to present an unexpired government-issued ID, as outlined in 31 CFR 1020.220(a)(2)(ii)(B); these methods may include contacting the customer; independently verifying the customer's identity through the comparison of information provided by the customer with information obtained from a consumer reporting agency, public database, or other source (i.e. verifiable internet resources, for example); checking references with other financial institutions; and obtaining a financial statement. However, in as far as attempting to verify identification via documentary methods, FinCEN offers the following guidance:
"…other forms of identification may be used if they enable the bank to form a reasonable belief that it knows the true identity of the customer. Given the availability of counterfeit and fraudulently obtained documents, a bank is encouraged to review more than a single document to ensure it can form a reasonable belief that it knows the true identity of the customer." FFIEC - Regulatory Requirements for Customer Identification Programs
Essentially, in instances where an unexpired government-issued photo ID is unavailable, it may be appropriate due diligence to ask for two (or more) alternate forms of identification, such as a birth certificate and a social security card, for example. The primary consideration to keep in mind is whether there is enough of a basis in reviewing the obtained documents to form the reasonable belief of knowing the identity of the customer. Again, however, this will ultimately be a risk-based decision that is specified upon the requirements of the bank's established CIP and BSA / AML program and policy.
The 
As a co-sponsor of the Graduate School of Banking at Colorado (GSBC), the South Dakota Bankers Association has partnered with GSBC to recognize community banks across South Dakota for their innovative approaches to serving their customers and communities with a new, nomination-based scholarship.
LAST CALL! The IRA Update builds on the attendees’ knowledge of IRA basics to address some of the more complex IRA issues their financial organizations may handle. This course includes how the SECURE Act really changes our two biggest topics: RMDs and death distributions and discusses any pending legislation. This is a specialty session; some previous IRA knowledge is assumed. The instructor uses real-world exercises to help participants apply information to job-related situations.