Online Training

Bank Secrecy Act – Sr. Management & Directors

The Bank Secrecy Act (BSA) is one of the main tools the Federal Government uses to combat financial crimes and terrorist activity. The BSA requires banks to assist in preventing crime by enacting sound policies regarding reporting, recordkeeping, and monitoring of potentially criminal activity.

BSA/AML requirements grant senior management and the board of directors’ primary responsibility for ensuring that the bank has a comprehensive and effective BSA/AML compliance program and oversight framework that is reasonably designed to ensure compliance. This course is intended for senior management and board of directors. Rev. 06/18. Course length ≈ 27 minutes.

Learning Objectives

• Implement a BSA/AML program at your bank based on the five pillars
• Know the basic technical requirements of the Bank Secrecy Act
• Understand the challenges banks may face if senior management and the board are not involved in creating a successful BSA/AML program
• Keep abreast of emerging trends in the BSA/AML world

Course Outline

• BSA/AML Program Requirements (5 Pillars)
• BSA Requirements Overview
• Common Findings/Challenges/Violations
• Hot Topics

Board Committees

Board committees are a very important part of effective corporate governance. Board committees allow for a division of labor and enable directors with the requisite expertise to handle matters that require detailed review or in-depth consideration.

This course provides information on the importance of board committees, the requirements of a committee charter, and the different types of committees that exist within a bank’s structure. Rev. 12/19. Course length ≈ 13 minutes.

Learning Objectives

• Understand the importance of having board committees.
• Create a board committee charter
• Know the different types of board committees that a bank may have

Course Outline

• Importance of Committees
• Written Committee Charter Elements
• Types of Committees

Board Governance

The idea of corporate governance simply means having an internal governance structure that meets the needs of your organization in whatever form that is. One can really view corporate governance as nothing other than doing the right things and providing a roadmap for what bank directors should do.

This course discusses an overview of ways to create a sound and comprehensive board of directors, the legal duties required of directors, the risks bank directors face, and succession planning considerations. Rev. 12/19. Course length ≈ 18 minutes.

Learning Objectives

• Create a board structure for the organization
• Comply with the legal duties of board members
• Understand the risks of being a director
• Consider various way to plan for board member succession

Course Outline

• Board Structure (members, size, executive session, internal governance)
• Legal Duties
• Succession Planning
• Other Miscellaneous

CAMELS

The Uniform Financial Institution Rating System (UFIRS), more commonly known as CAMELS rating, is an internal rating system used by the banking regulators for assessing the soundness of financial institutions on a uniform basis.

The system also helps identify institutions requiring closer supervisory attention. This course describes each of the six components of the CAMELS rating and the principal evaluation factors that relate to each component. Rev. 12/18. Course length ≈ 18 minutes.

Learning Objectives

• Know what comprises the component and composite ratings
• Define what each of the components for the CAMELS ratings are
• Understand the assessment factors for each component

Course Outline

• Ratings
• Capital Adequacy
• Asset Quality
• Management
• Earnings
• Liquidity
• Sensitivity to Market Risks
• Exam Report

Compliance Laws & Regulations

Laws and regulations govern many aspects of banking. It is important bank directors have a general understanding of each of the regulations in order to establish policies and monitor its operations according to the law.

This course gives you a brief overview of many of the banking laws and regulations. Rev. 12/18. Course length ≈ 37 minutes.

Learning Objectives

• Have a general understanding of the of the various federal regulations
• Ensure your bank is complying with the laws and regulations through policy creation and monitoring

Course Outline

• Deposit Regulations A-Z
• Lending Regulations A-Z
• Other Laws

Compliance Program Management for Directors

Managing compliance is an integral part of any bank’s business strategy. The board of directors and management must recognize the scope and implications of laws and regulations that apply to their bank and establish a compliance management system.

This course walks you through managing a successful compliance management system. Rev. 12/18. Course length ≈ 14 minutes.

Learning Objectives

• Help to create, manage, and monitor the bank’s Compliance Management System
• Ensure your community bank has a successful compliance examination

Course Outline

• What is a CMS?
• Board Oversight
• Compliance Program
• Compliance Audit
• Examinations

Cyber & Information Security Overview for Sr. Management & Directors

Building and operating an information security program at your organization can be challenging.

This course provides your board of directors, senior management, and information security committee with the information to understand oversight responsibilities and make informed decisions to protect the bank and its customers. Rev. 11/19. Course length ≈ 35 minutes.

Learning Objectives

• Understand the board of directors’, senior management’s, and information security committee’s roles and responsibilities for cybersecurity implementation and monitoring
• Use of the FFIEC’s Cybersecurity Assessment Tool (CAT)
• Basics of risk-based decision-making

Course Outline

• Roles and Responsibilities
• The Information Security Program
• FFIEC Cybersecurity Awareness Program & Tool

Director Responsibilities Concerning Lending

Traditionally, lending has been at the core of a bank’s activities and provides a great source of earning. Lending also poses one of the single greatest risks to the bank’s safety and soundness.

Controlling risks and maintaining profitable lending operations are critical in portfolio management. Whether due to economic changes, tax credit standards, or inadequate loan review practices, loan portfolio problems have been a major cause of bank losses and recent headlines.

It is the board’s responsibility to ensure that credit risk is managed and controlled properly on an integrated bank-wide basis. Rev 12/17. Course length ≈ 17 minutes.

Learning Objectives

• Identify the nine elements of risk associated with the loan portfolio
• Understand the credit risk profile of your bank and create a strategic plan
• Learn what should be included in the bank’s loan policy and underwriting procedures
• Ensure your bank has the appropriate concentration of credit based on its level of risk

Course Outline

• Nine Elements of Risk
• Risk Profile and Strategic Planning
• Nine Elements of Risk
• Policies and Underwriting
• Loan Review

Ethics for Bank Directors

Business ethics is a serious subject for executives, managers, and front-line employees. All bank employees are expected to make good decisions every day based on the organization's values and contemporary standards in business ethics.

Given the increased scrutiny boards are subject to, this is especially true for bank directors. This module helps bank directors understand the importance of recognizing an ethical dilemma and then acting accordingly.

It also assists directors in making sound decisions based on the principles of business ethics. Rev 12/16. Course length ≈ 22 minutes.

Learning Objectives

• Explain the importance of business ethics
• Identify the core values of banking
• Outline a process for ethical decision making
• Discuss some ethical problems banks can be confronted with

Course Outline

• The Importance of Ethics
• Ethics and bankers
• Ethical decision making
• Common Ethical Problems in Banking

Executive Compensation Practices for Bank Directors

Being a bank director carries a lot of responsibility. Bank directors select management, oversee business performance, ensure compliance with the latest regulations, and make sure the bank is meeting the needs of the community.

Because of this, bank directors need to be compensated. In this course we will look at how and why bank directors are compensated, and how bank directors can help their bank set compensation practices based on the principles of safety and soundness. Rev 12/16. Course length ≈ 22 minutes.

Learning Objectives

• Explain why bank directors are compensated
• Discuss the various modes of compensation for bank directors
• Identify the parties that determine compensation levels
• Discuss contemporary issues in bank director compensation

Course Outline

• Why are Bank Directors Compensated?
• How are Bank Directors Compensated?
• Who Determines Compensation Levels?
• Contemporary Issues in Bank Director Compensation
• Incentive Based Compensation

Fair Lending for Bank Directors

Understanding fair lending is important to managing credit and compliance risk as well as reputation risk. Every director must be familiar with the fair lending regulations and the implications of noncompliance.

In this course we provide a brief overview of the fair lending laws and the types of lending discrimination. We will also discuss actions a bank should take to avoid running afoul of fair lending laws and provide information on the current state of fair lending in the banking industry. Rev. 12/19. Course length ≈ 20 minutes

Learning Objectives

• Understand the laws that require fair lending
• Know the types of lending discrimination
• Help develop and monitor a bank’s fair lending program to mitigate risk
• Identify the highest areas of risk

Course Outline

• Fair Lending Laws
• Types of Lending Discrimination
• Risk & Monitoring
• Current State of Fair Lending

Red Flags Identity Theft Prevention Programs

Every financial institution must develop and implement a written identity theft prevention program that is designed to detect, prevent, and mitigate identity theft in connection with the opening of an account.

This course discusses the information you need to implement and maintain a compliance program at your bank. This course is intended for all personnel of the bank including, frontline, lenders, operations, and compliance. Rev. 6/19. Course length ≈ 30 minutes.

Learning Objectives

• Explain the necessary components of a Red Flags Identity Theft Prevention Program
• Establish a Red Flags Identity Theft Prevention Program at your bank
• Understand the change of address policies your bank is required to have as a part of its Red Flags Identity Theft Prevention Program
• How to implement proper Red Flags Identity Theft Prevention Program training policies for staff at your bank

Course Outline

• Overview
• Establishing the Program
• Change of Address Requirements
• Recordkeeping and Enforcement
• Fraud Alerts
• Examples
• Notice of possible identity theft

Regulation CC: Funds Availability Act – Overview

Regulation CC, also known as the Expedited Funds Availability Act, establishes the basic rights, liabilities, and responsibilities financial institutions has regarding the availability of deposited funds. Regulation CC also outlines the rules and regulations banks must follow pertaining to substitute checks.

This course provides an overview of funds availability rules, required notices, returning of checks, and substitute checks. This course is intended for frontline staff and those who make decisions regarding holds and the paying of checks. Rev 12/18. Course length ≈ 30 minutes.

Learning Objectives

• Acknowledge when funds must be made available for withdrawal
• Know when and how to notify the customer of delayed availability
• Review that you and your bank are disclosing the bank's funds availability policy accurately
• Ensure the return of a check to the deposit bank is done in a timely and correct manner
• Understand the basic rules regarding Check 21 and substitute checks

Course Outline

• Availability Schedules
• Exception Hold Notices & Fees
• Funds Availability Policy & Disclosures
• Recordkeeping and Enforcement
• Returning of Checks
• Check 21/Substitute Checks

Regulation E: Electronic Funds for Bank Directors

The Electronic Funds Transfer Act aims to protect the rights of consumers when they engage in electronic funds transfer (EFT) transactions. Regulation E establishes rights, liabilities and responsibilities of consumers who use electronic fund transfer services and of financial institutions that offer these services.

In this course we cover the general requirements for complying with Regulation E, error resolution and liability, and exams. Rev. 12/18. Course length ≈ 20 minutes.

Learning Objectives

• Understand the general requirements of Regulation E
• Review that your bank protocols regarding electronic fund transfer are compliant
• Know what financial liability customers have regarding unauthorized transactions

Course Outline

• Coverage
• Disclosures
• Error Resolution & Liability
• Examinations

Regulation O: Insider Lending – Overview

Regulation O governs extensions of credit made by a bank to an executive officer, director, or principal shareholder. It also applies to extensions of credit made by a bank to a political or campaign committee that benefits or is controlled by such a person.

This course is intended for lending personnel. Rev 12/17. Course length ≈ 17 minutes.

Learning Objectives

• Discuss the purpose of Regulation O
• Understand who is subject to Regulation O
• Define the limitations of extensions of credit to those parties

Course Outline

• Overview
• Insiders
• Inclusions & Exclusions

Role and Responsibilities of Bank Directors

A bank’s board of directors sets the tone for the bank’s business and oversees the management of the bank’s activities. Those who elect the directors have confidence in the board’s abilities to guide the bank with reasonable care.

In turn, all directors must consider the bank’s interests before their own. This course helps directors understand what it means to be a bank director and the responsibilities the board of directors must ensure a safe and sound bank. Rev. 12/17. Course length ≈ 12 minutes

Learning Objectives

• Know what qualification a bank should consider when choosing a board member
• Understand the role and responsibilities of a bank director
• Understand which bank policies should be reviewed by the board of directors
• Know what to review in various reports to monitor the bank’s operations

Course Outline

• Board Members and Composition
• Roles and Responsibilities of Bank Directors
• Monitoring Bank Activity

Regulatory Examination Preparation

Compliance examinations are the primary means regulatory agencies use to determine whether a financial institution is meeting its responsibility to comply with the requirements of federal consumer protection laws and regulations.

Regulators accomplish this by examining a banks policies and procedures to ensure compliance with the federal banking regulations. This course discusses the examination purpose and process and common concerns within various regulations. This course is intended for management, directors, and compliance personnel. Rev 12/16. Course length ≈ 30 minutes.

Learning Objectives

• Prepare your bank for a regulatory examination
• Explain how regulatory agencies rate banks
• Identify common concerns many banks have when it comes to complying with key regulatory areas

Course Outline

• Regulatory Examinations
• The Examination Process
• Common concerns

Security: Laws, Rules & Regulations

The security function's primary duty is to develop and administer a written Security Program for the institution. The Security Program should combine procedural security techniques with physical ones.

This course discusses the laws, rules, and regulations that affect the security function. This course is intended for security officers, management, and the board of directors. Rev 07/18. Course ≈ 22 minutes.

Learning Objectives

• Define and describe industry-standard security practices.
• Identify security regulations that affect the institution.
• Describe how the relationship between the security function and the board of directors should work.
• Identify the issues the institution's Security Program must address.
• Discuss the meaning of the Bank Protection Act.
• Identify other safety and security regulations that may be applicable.

Course Outline

• Board Members and Composition
• Roles and Responsibilities of Bank Directors
• Monitoring Bank Activity

Understanding UDAAP

Unfair, deceptive, or abusive acts and practices (UDAAP) can cause significant financial injury to consumers, erode consumer confidence, and undermine the financial marketplace. Federal Regulations make it illegal for any provider of consumer financial products or services to engage in unfair, deceptive or abusive acts or practices.

This course introduces UDAAP and how to create policies and procedures and products and services that will not violate the federal regulations. This course is intended for all personnel. Rev 12/16. Course length ≈ 18 minutes.

Learning Objectives

• Test the policies, procedures, processes and controls at your bank concerning liabilities to ensure function and compliance.

Course Outline

• Auditing Deposits
• Sample Violations
• Creating a UDAAP Compliance Program
• Controls