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CFPB Urged to Streamline Overdraft Rule
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The Consumer Financial Protection Bureau should not impose any
 additional regulatory requirements on financial institutions offering overdraft services. In a comment letter on the bureau's review of its overdraft rule, ICBA wrote that the CFPB should instead work with other regulatory agencies to:
- ensure regulatory guidance provides financial institutions the flexibility to serve customers,
- provide compliance certainty in the marketplace, and
- streamline guidance while considering the relationship-based community bank model.
Under the CFPB rule, financial institutions may not charge consumers a fee for paying ATM and one-time debit card transactions that overdraw an account, unless they affirmatively consent to overdraft coverage for these transactions. The CFPB is reviewing whether the rule should be continued, amended or rescinded to minimize the effect on small entities.
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Cash Use Continues Slide as Card Volume Rises
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Consumers last year were less likely to use cash and more likely to  use payment cards than they were a year ago, according to a Federal Reserve survey.
The study found that 26 percent of surveyed consumers used cash in payments and transactions over three consecutive days in 2018, down from 30 percent in 2017. Debit card use rose from 26 percent to 28 percent, while credit card use increased from 21 percent to 23 percent.
Cash remained heavily used for small-value payments, representing 49 percent of payments under $10. Meanwhile, total monthly payments increased from 41 to 43 transactions, largely driven by increases in the number of debit and credit card transactions.
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June Consumer Confidence Down
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The Conference Board Consumer Confidence Index decreased 9.8  points to 121.5 in June. The Present Situation Index fell by 8.1 points to 162.6. The Expectations Index, based on consumers short-term outlook for income decreased 10.9 points to 94.1.
"After three consecutive months of improvement, Consumer Confidence declined in June to its lowest level since September 2017 (Index, 120.6)," said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. "The decrease in the Present Situation Index was driven by a less favorable assessment of business and labor market conditions. Consumers' expectations regarding the short-term outlook also retreated. The escalation in trade and tariff tensions earlier this month appears to have shaken consumers' confidence. Although the Index remains at a high level, continued uncertainty could result in further volatility in the Index and, at some point, could even begin to diminish consumers' confidence in the expansion."
Consumers' outlook for the labor market was less favorable. The proportion expecting more jobs in the months ahead decreased from 18.4 percent to 17.3 percent, while those anticipating fewer jobs increased from 13.0 percent to 14.8 percent. Regarding their short-term income prospects, the percentage of consumers expecting an improvement decreased from 22.2 percent to 19.1 percent, while the proportion expecting a decrease inched up from 7.8 percent to 8.0 percent.
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Bill Includes CFPB in Regulatory Reviews
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ICBA expressed strong support for legislation to incorporate the
 Consumer Financial Protection Bureau into Economic Growth and Regulatory Paperwork Reduction Act regulatory reviews. The Comprehensive Regulatory Review Act (H.R. 3198), introduced by Reps. Barry Loudermilk (R-Ga.) and Josh Gottheimer (D-N.J.), also would require EGRPRA reviews to occur every seven years rather than every 10.
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QUESTION: What due diligence is required for marijuana related business under BSA?
ANSWER:
A financial institution should conduct customer due diligence that includes:
- verifying with the appropriate state authorities whether the business is duly licensed and registered;
- reviewing the license application (and related documentation) submitted by the business for obtaining a state license to operate its marijuana-related business;
- requesting from state licensing and enforcement authority's available information about the business and related parties;
- developing an understanding of the normal and expected activity for the business, including the types of products to be sold and the type of customers to be served (e.g., medical versus recreational customers);
- ongoing monitoring of publicly available sources for adverse information about the business and related parties;
- ongoing monitoring for suspicious activity, including for any of the red flags described in this guidance; and
- refreshing information obtained as part of customer due diligence on a periodic basis and commensurate with the risk.
Reference: BSA Expectations Regarding Marijuana-Related Businesses, FinCEN FIN-2014-G001.
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2019 Arkansas Community Bankers Association
Bank Management
& Directors Conference
November 5, 2019
** Mike Neighbors, Keynote Speaker
UofA Women's Basketball Head Coach **
**Washington D.C Update from ICBA**
**Arkansas SBA Bank Lender Awards**
and much more....Watch for Details!
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