Community Bank Compliance

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May 14 - May 16, 2019
May 16, 2019
BSA/AML Institute* - MN
Event Type: Seminar/Institutes
Executive C-Suite Training, Compliance, BSA Certification
Minneapolis, MN
June 09 - June 14, 2019
June 14, 2019
Compliance Institute* - MN
Event Type: Seminar/Institutes
Executive C-Suite Training, Compliance Certification, Compliance
2800 American Boulevard West
Minneapolis, MN

Question of the Week

  • QUESTION: Is the director of an affiliate bound by the extension of credit requirements of Regulation O?


    Regulation O states:

    Extensions of credit to a director of an affiliate of a bank are not subject to sections:

    • 215.4 “General Prohibitions”,
    • 215.6 “Prohibitions on knowingly receiving unauthorized extensions of credit”, and
    • 215.8 “Records of member banks”

    If, the director of the affiliate is excluded, by resolution of the board of directors or by the bylaws of the bank, from participation in major policy making functions of the bank, and the director does not actually participate in such functions.

    Reference: Regulation O: 12 CFR 215.2(d)(2).


  • QUESTION: The bank received for deposit a treasury check that was not endorsed by the payee but was deposited into a joint account of the payee. The person endorsing the check is also on the account. Does this check require next day availability?


    Normally a Treasury check requires next day availability with a requirement that the check is endorsed by the payee. A Treasury check that is not endorsed by the payee presents more risk to the bank and does not require next day availability. The regulation, therefore, provides that funds must be available on the business day following deposit only if the check is deposited in an account held by a payee of the check. When determining the availability in this situation, the bank should consider its policies, and any special circumstances – e.g., whether the joint account holder is authorized to sign for the other person.
    Reference: Regulation CC 12 CFR 229.10 commentary 229.10(c).