The banking industry is continuously under the watchful eye of
the government and the Federal Reserve. The government is in
charge of setting restrictions on the banking industry's borrowing
limits and the amount of deposits that banks hold in their vaults.
These restrictions have a tremendous impact on banking
profitability. It is a federal law that banks must stay complaint to
What is Compliance?
Compliance is the act of adhering to a standard or a regulation.
Compliance training is mandatory for all banking employees.
This training tutorial will provide every employee with a basic
knowledge about the compliance rules and regulations that
pertain to their departments.
Compliance Training Objective
This training is intended to provide participants
with a step-by-step guide for regulatory
management while following existing federal,
state and local regulatory laws corresponding to
the Banking branch departments.
In this training course you will learn:
What is regulatory compliance and it how it effects
Knowledge of Devon Bank departmental
Penalties for noncompliance and institutional risks.
How to Devon Bank employees avoid government
penalties and fines.
Why compliance is important.
It is Devon Bank’s responsibility to comply
with all federal rules and regulations in
every aspect of its business.
All employees are expected to comply with
Federal rules and regulations.
FDIC Compliance Guidelines
Compliance examinations are the primary
means the FDIC uses to determine
whether a financial institutions is meeting
its responsibility to comply with the
requirements and proscriptions of federal
consumer protection laws and regulations.
The FDIC conducts three annual reviews
to determine whether of not an institution
is compliant to Federal regulations. The
three supervisory activities are compliance
examinations, visitations and
Who Regulates Devon Bank?
Office of Comptroller of the Currency
Federal Reserve Member Banks (FRB)
Federal Deposit Insurance Corporation
Housing and Urban Development (HUD)
Compliance examinations are primarily
done to assess the quality of an FDIC-
supervised institution's compliance
To implement federal consumer protection
statutes and regulations
To review compliance with relevant laws
To initiate effective supervisory action
when elements of an institution's
compliance management system are
deficient or a significant violation of the
Compliance visitations are conducted by
the FDIC to review the compliance posture
of newly chartered institutions coming
under FDIC- supervision, or in the interval
between compliance examinations to
review an institution's progress on
All employees of Devon Bank should
follow the rules and regulations when
performing job duties.
Devon Bank is responsible for promoting
awareness for violation of laws and
Regulatory compliance is the goal that
financial institutions aspire to reach in the
efforts to ensure all personnel are
complaint with relevant laws and
At Devon Bank, all employees are
required to conduct business in a legal
and ethical manner.
Things to Remember
Do not discriminate against a client or employee because of
race, gender, religion, national origin, color, age, disability,
sexual orientation or preference or veteran status
Commit to the highest standard of business and ethical
conduct in all activities while representing Devon Bank
Respect the rights of others
Avoid conflicts of interest and self dealing
Be award of laws, rules, regulations and policies that apply to
Promote accuracy and truth in Devon Bank business
Maintain absolute confidentiality regarding client’s records
Report any perceived wrongdoing to your supervisor of the
Devon Bank Compliance Department
Do not destroy any records except in accordance to Devon
Now that you are aware of FDIC compliance
guidelines that govern Devon Bank, we will
next review responsibilites for the Senior
Senior Management are the department
heads for each area of the bank.
Senior Management oversee all
departments within Devon Bank ensuring
that compliance of the rules and
regulations are being upheld.
Devon Bank Senior
American Disabilities Act:
The main aim of this disabilities act is to
stop any kind of discrimination in
employment, transportation, public
programs and services, telecommunications
services and public accommodation.
Bank Secrecy Act
This act requires financial institutions in the United
States to assist United States government
agencies to detect and prevent money
Financial institutions are required to keep records
of cash purchases of negotiable instruments and
file reports of cash purchases of these
negotiable instruments of ten thousand dollars
The function of the Patriot Act is to deter
and punish terrorist acts in the United
States and around the world.
The Patriot Act prevents, deters and helps
prosecute international money laundering
and financing of terrorism.
Community Reinvestment Act
Designed to encourage commercial banks
and savings associations to meet the
needs of borrowers in all segments of their
communities, including low-and moderate-
Bank employees must understand the challenges
that come with diversity such as the aspect of
cultures having different standars for
communication and different beliefs.
By eliminating sterotypes and embracing diversity,
individuals will be able to work through those
difference in their workforce and maximixe the
productivity of the organization.
Legislation is being passed across the
county due to many senior citizen being
the victims of financial exploitaion. Should
a bank fail to report suspicions of elder
financial abuse, they will be held liable.
Regulation B:Equal Credit Opportunity Act (ECOA)
Prohibits creditor practices that discriminate on the
basis of race, color, religion, national origin, sex,
marital status or age (provided the applicant has
the capacity to contract) to the fact that all or part
of the applicant's income derives from a public
ECOA also applies to the fact that the applicant
has in good faith ecercised any right under the
Consumer Credit Protection Act.
Bank Bribery Act
Amends the federal bank bribery law.
Prohibits any employees, officers,
directors, agents and attorneys of financial
institutions form accepting anything of
value for or in connection with any
Fair Debt Collection Practices Act
Curbs abusive debt-collection practices by
promoting fair debt collection and
providing consumers with an opportunity
for disputing and obtaining validation of
debt information in order to ensure the
Fair Lending Law
Ensures equal objective and non-baised
treatment of existing and prospective
customers in all credit-related transactions
National Flood Insurance
Instructs banks not to increase, extend or
renew any designated loan unless the
building, mobile home or any personal
Securing the loan is covered by flood
insurance for the term of the loan for the
paricular type of property under the act.
Requires financial institutions that offer
customers financial services or products
like financial or investment advice. Loans
or insurance to explain their information
sharing practices to their customers as
well as to safeguard sensitive data.
Regulation C:Home Mortgage
Disclosure Act (HMDA)
This is intended to provide the public with
loan data that can be used to help
determine whether financial instituions are
serving the housing needs of their
Bank employees must understand the
importance of protecting customer and
employee information, complying with the
laws and regulations that required due
diligence, following proper security policies
and procedures, as well as reporting
Regulation O: Insider Loans
Prohibits abuse of a bank by its own
Regulation O covers insiders of the
Requires special reporting and approval
procedures for loans and insiders.
Limits lending amounts to insiders.
Reports loans at correspondents.
Federal Reserve Act 23A-Relations
Regulates transactions between a bank and
it affiliates. The following transactions are
not permitted by banks:
Parent company's overdrawn checking
account with bank subsidiary
Payment of organization costs by bank
Federal Reserve Act 23B- Restricitons
on Transactions with Affiliates
Expands the range of retrictions on
transactions with affiliates.
Any transaction by a member bank or its
subsidiary with any person shall be
deemed to be a transaction with an
affiliate of such bank, if any of the
proceeds of the transacion are used for
the benefit of or transferred to an affiliate.
Regulation W: Transations between
Banks and their Affiliates
Implements sections 23A and 23B of the Federal
Reserve Act, which establish certain restrictions
on and requirements for transactions between a
member bank and its affiliates.
It applies to all fedrally-insured depository
instituions and requires that transactions
between member banks uphold banking
National Institute for Occupational Safety and Health
depicts workplace violence as any physical assault,
threatening behavior or verbal abuse occurring in
the work setting.
Devon Bank employees should be knowledgeable and
maintain awareness in regards to possible work
Real Estate Lending
Reminds institutions that strong risk
management practice and appropriate
levels of capital are essential elements of
a sound commercial real estate.
Right to Financial Privacy
Protects a customer's financial privacy,
while still fulfilling the needs of
Specifies when and under what conditions,
a financial institution may release
customer financial records to a federal
government authority, pursuant to
customer authorization, a search warrant,
judicial subpoena or administrative
subpoena or summons.
Protects investors from the possibility of
fraudulent accounting activities by
corporations also mandates strict reforms
to improve financial disclosures from
corporations and prevent accounting
It is necessary for all employees to be
knowledgeable in what is and what is not
acceptable behavior at Devon Bank.
In order to minimize the banks sexual
harassment complaints, all employee
should keep a look out for inappropriate
conduct/language, speak up to prevent it
and report incidents with the HR.
You have just completed the review of
Federal Rules and Regulations for the
Devon Bank Senior Management
Next you will complete the practice
Regulation C is intended to:
a) Protect individual consumers engaging in electronic funds
b) Provide the public with loan data that can be used to help
determine whether financial institutions are serving the
housing needs of their communities
c) Provides guidance on real estate lending standards
d) All of the above
Which does not apply to The National Flood Insurance
a) Instructs banks not to increase loans
b) Insures property only covered by flood insurance
c) Instructs banks not to renew loans
d) Renews loans not covered by flood insurance
The primary purpose of the Bank Secrecy Act is to
prevent and detect money-laundering activity
through financial institutions, casinos and certain
other businesses in this country.