csi-watchdog

Regulation CC Solution (Availability of Funds and Collection of Checks)

BankInfra’s RegCCinfra is #1 choice of replacement for CSI Watchdog.

DEFINITION of ‘Regulation CC‘ One of the banking regulations set forth by the Federal Reserve. Regulation CC implements the Expedited Funds Availability Act of 1987. This act sets certain standards for endorsements on checks that are paid by banks and other depository institutions.

In 1987, Congress passed the Expedited Funds Availability Act (PDF) (EFAA), to address concerns about the lengths of holds banks were then placing on checks deposited by their customers. The EFAA establishes maximum permissible hold periods for checks and other deposits. The Board’s Regulation CC (12 CFR part 229) implements the funds-availability and disclosure provisions of the EFAA in Subpart B of the regulation.

The EFAA also gave the Board the authority to regulate the nation’s check-clearing system more generally. Pursuant to this authority, the Board adopted rules to speed the return of unpaid checks. These rules reduce the risk to depositary banks of having to make funds from check deposits available for withdrawal before learning whether the checks have been returned unpaid. In the 1990s, the Board adopted a same-day settlement rule, which decreased the competitive disparity between Reserve Banks and private-sector banks when presenting checks for payment. The check-return rules and same-day settlement rules are set forth in Subpart C of Regulation CC.

In 2003, Congress passed the Check Clearing for the 21st Century Act (PDF) (Check 21), which was designed to enhance payment system efficiency by reducing legal impediments to processing checks electronically. Check 21 facilitated processing checks electronically by creating a new type of paper instrument, called a substitute check, which is the legal equivalent of the original check for all purposes. Check 21 creates substitute-check warranties, an indemnity, and consumer expedited-recredit procedures. Check 21 is implemented in subpart D of Regulation CC.

Check 21 has enabled banks to send checks electronically (rather than in paper form) to banks with which they have agreements to do so, and to send substitute checks to banks with which they do not. As a result, the nation’s interbank check-collection processes have become almost entirely electronic, and the electronic methods have enabled banks to offer new customer services.

In response to the growth in electronic processing, the Reserve Banks reduced the number of their paper check-processing offices from 45 in 2003 to a single office in 2010. The consolidation resulted in all checks being considered “local checks” under Regulation CC.

Reg CC Availability of Funds and Collection of Checks

EGRPRA 2017 Report

Economic Growth and Regulatory Paperwork Reduction Act Report for 2017 Available

The Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA) requires that regulations prescribed by the Federal Financial Institutions Examination Council, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Board of Governors of the Federal Reserve System be reviewed by the agencies at least once every 10 years.

The purpose of this review is to identify, with input from the public, outdated, unnecessary, or unduly burdensome regulations and consider how to reduce regulatory burden on insured depository institutions while, at the same time, ensuring their safety and soundness and the safety and soundness of the financial system. The first EGRPRA review was completed in 2007, with the submission of the required Report to Congress in July of that year.

The second EGRPRA review, which began in 2014, is now complete.  The agencies submitted their second EGRPRA Report to Congress on March 21, 2017.

The National Credit Union Administration conducted a review of its regulations at the same time and in a manner consistent with the EGRPRA review. The results of its review are included in the Report to Congress. The Consumer Financial Protection Bureau is required to review its significant regulations and publish a report of its review five years after the regulations take effect, in a process separate from EGRPRA.

The 2017 EGRPRA Report to Congress is available here: https://www.ffiec.gov/pdf/2017_FFIEC_EGRPRA_Joint-Report_to_Congress.pdf

CDD Requirements for Bank Secrecy Act

Its effective date is 06/11/2016 and date of the final CDD rule is May 11, 2018

https://www.fincen.gov/sites/default/files/2016-09/FAQs_for_CDD_Final_Rule_(7_15_16).pdf

FinCEN released SAR Stats for the past through December 2016

The number of SAR filing keeps increasing. See the details.

https://www.fincen.gov/sites/default/files/sar_report/2017-03-09/SAR%20Stats%203.pdf

FDIC issued Supervisory Insights to promote Risk Management titled “Credit Risk Trends and Supervisory Expectation Highlights”.

See details by clicking here.

https://www.fdic.gov/regulations/examinations/supervisory/insights/index.html

Web-based Trade Finance System – eTradePlus

Bankinfra has completed upgrade of trade finance system from windows based system to web-based one in June, 2010. It took more than nine months with detailed business analysis with banking experts. The major difference from the previous version is that eTradePlus is developed from the SWIFT framework and communication among the users and customers.

FASB 156 amended to FASB 166

Effective as of June 30, 2009, Financial Accounting Standard Board (“FASB”) incorporated U.S. generally accepted accounting standards in the name of “Accounting Standards Codification (“ASC”). With this, FASB’s Statement No. 156 titled as “Transfers and Servicing” was amended to ASC No. 860 or FASB’s Statement No. 166 with provisions which will influence FASBinfra2 software to be modified and upgraded accordingly.

DocuFront for Document Management

Bankinfra finally completed a robust Document Management system, DocuFront, expecting that many government institutions, colleges, legal companies, medical institutions, and financial institutions who seek Green paperless environment policy with seamless disaster recovery plan.

Smart Phone Banking

Bankinfra has released its smart phone banking application to replace mobile banking in one of the Los Angeles based bank. The phone O/S has been implemented with Android, Blackberry, and iPhone for user interface linking its host bank’s websites in the format of mobile banking.

eVoucher – Paperless Item Entry

Item Block Entry for paperless item management requires dual control and proper logging procedure.

Bankinfra developed eVoucher to automate paperless entry from ITI Core System for block entry user banks.

Intranet or web-based version is also available for easy installation. Main feature includes:
1) Dual control,
2) Automatic interface with ITI Core System,
3) Account Number, Tran Code, and Balance validation,
4) Multi-level security for entry, supervisor, and administrator, and
5) Complete audit trail report to remove unnecessary documentation for dual control.