By: Steve Shepherd, CRCM

On October 22nd, 2021, the Justice Department announced new initiatives to help combat redlining.  The new initiatives will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with the U.S. Attorney’s Office.  According to the press release, the actions will:

• Utilize U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.
• Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services but engage in mortgage lending and now make the majority of mortgages in this country. 
• Strengthen their partnership with financial regulatory agencies to ensure the identification and referrals of fair lending violations to the Department of Justice.
• Increase coordination with State Attorneys General on potential fair lending violations.

The following link provides more information: 
https://www.justice.gov/opa/pr/justice-department-announces-new-initiative-combat-redlining

By: ​Kyle Tucker, Financial Institution Specialist

On December 14, 2021, the OCC announced that is has rescinded its June 2020 CRA rule.  The OCC is requiring institutions to revert to the rule adopted jointly by the Federal banking agencies in 1995, as amended. This is effective January 1, 2022 and is intended to promote consistency for all national banks, federal banks, and state savings associations (including community banks) covered by the CRA. The final rule states:

• The OCC will provide newly designated large banks (banks that were small banks before the June 2020 CRA rule but are large banks under the final rule) with one year to comply with the final rule’s data collection, record-keeping, and reporting requirements;
• With respect to the qualifying activities criteria or retail or community development definitions, banks will receive consideration in their CRA examinations for activities in effect at the time the banks conducted the activities or entered into legally binding commitments to conduct the activities, including under the June 2020 rule;
• Bank strategic plans approved before January 1, 2022, remain in effect except for any provisions that are inconsistent with the final rule; and
• Banks are not required to comply with the final rule’s public file and public notice provisions until April 1, 2022.

Follow the link for additional information:
https://www.occ.gov/news-issuances/bulletins/2021/bulletin-2021-61.html

By: James Moore, CRCM

One more year has passed, and we are faced with the new challenges of 2022.  Anyone with a compliance background understands there is no such thing as a fresh start for a new year.  The following is a list of reminders and updates to make sure you are heading in the right direction for the New Year. 

​Deposit Compliance:

• Regulation CC training should have been provided during 2021 and make plans to provide Reg. CC training during 2022.
• Regulation CC hold thresholds remain at $225 (next day) and $5,525 (exception) until July 1, 2025.
• Annual privacy training should have been provided for 2021 to all employees and ensure annual privacy training is scheduled for 2022.  Furthermore, ensure that the Board of Directors has received privacy training.
• Ensure annual privacy disclosures will be mailed during 2022 or verify the institution’s exemption status for 2022.   
• Determine the number of remittance transfers under Regulation E from the previous calendar year to ensure the institution has not exceeded the threshold for “normal course of business” of 500 consumer transfers.
• Ensure the ID Theft Program administrator has reported to the Board annually on the status of the ID Theft Program. ​

​Loan Compliance:

• The 2021 HMDA LAR and CRA LAR for large institutions must be submitted by March 1, 2022.
• Check the historic examples for HELOC and ARM application disclosures to ensure the most recent 15 years are used in the examples.
• The CRA Public File should be updated by April 1, 2022.
• Check the accuracy of the affiliated business disclosures to ensure all affiliated businesses are disclosed along with the current range of fees and the current ownership interest of each affiliated business.
• The 2022 HOEPA points and fees test will use the following:
  • 5% of loan amounts of $22,969 or more
  • For a loan amount less than $22,969, the lesser of 8% or $1,148
• The 2022 QM points and fees test will use the following:
  • For a loan amount greater than or equal to $114,847: 3% of the total loan amount
  • For a loan amount greater than or equal to $68,908 but less than $114,847: $3,445
  • For a loan amount greater than or equal to $22,969 but less than $68,908: 5% of the total loan amount
  • For a loan amount greater than or equal to $14,356 but less than $22,969: $1,148
  • For a loan amount less than $14,356: 8% of the total loan amount
• The 2022 General QM threshold for meeting general QM status will use the following:
  • 2.25 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $114,847;
  • 3.5 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $68,908 but less than $114,847;
  • 6.5 or more percentage points for a first-lien covered transaction with a loan amount less than $68,908;
  • 6.5 or more percentage points for a first-lien covered transaction secured by a manufactured home with a loan amount less than $114,847;
  • 3.5 or more percentage points for a subordinate-lien covered transaction with a loan amount greater than or equal to $68,908; and
  • 6.5 or more percentage points for a subordinate-lien covered transaction with a loan amount less than $68,908.
• The 2021 Truth In Lending threshold is $61,000 for loans not secured by real property and private education loans.
• The 2022 “small creditor” threshold is $2.336 billion as of December 31, 2021.
• The 2022 “small loan” exemption for HPML appraisal rules is $28,500.
• For 2022, the safe harbor credit card penalty fee is $30 for the first and $41 for subsequent late fees. 
• If the creditor allows borrowers to shop for any required services for TRID loans, it should update (as necessary) the written list provided with the Loan Estimate to identify at least one available provider for each settlement service for which the consumer is permitted to shop. 
• Ensure that employees and Directors have received fair lending and CRA training for 2021.  Training should be planned for 2022.
• Review the CRA asset size thresholds for 2022:
  • CRA asset size thresholds for 2022 are under $346 million for small bank (based on both of the last two calendar years), at least $346 million up to $1.384 billion for intermediate small bank (based on either of the two last calendar years), and $1.384 billion and over for large bank (based on both of the last two calendar years).
    • Note: On December 4, 2021, the OCC issued a final rule that rescinds its June 2020 Consumer Reinvestment Act (CRA) final rule and replaces it with a rule that is largely based on the OCC’s 1995 CRA rule that was adopted jointly with the Federal Reserve Board and FDIC. The final rule is effective January 1, 2022.
• The HMDA asset size threshold for depository institutions for 2022 is $50 million.
• Ensure a review of 2020 and 2021 transaction data is conducted for 2022 reporting requirements.  In addition to meeting the above HMDA asset threshold:
  • An institution must have in each of the two preceding calendar years, originated at least 100 or more covered closed-end dwelling secured loans to report closed-end loans.
  • Dwelling secured open-end lines of credit must be reported in 2022 if a covered institution originated 200 or more covered dwelling secured open-end lines of credit in each of the previous two calendar years. 
• Review HMDA small filer exemption for reduced field reporting criteria for 2022:
  • Originated less than 500 closed-end mortgages in each of the two preceding calendar years and received a “Satisfactory” or better CRA rating.
  • Originated less than 500 open-end mortgages in each of the two preceding calendar years and received a “Satisfactory” or better CRA rating.
• Ensure procedures are in place for performing escrow account analyses and that the financial institution has implemented procedures for providing annual escrow account notices.
• Ensure loan officers completed S.A.F.E. Act license renewal procedures.
• Ensure an annual independent S.A.F.E. Act audit has been performed.
• Ensure lenders who receive compensation based on insurance sales (credit life/disability) complete license renewal procedures.
• Ensure the financial institution has documented whether they meet the definition of a small servicer and that documentation of the determination is retained for record retention.
• Ensure the financial institution has documented whether they meet the definition of a small creditor and that documentation of the determination is retained for record retention.
• Review the final list or rural or underserved counties for 2021, calculate rural or underserved status by address on the CFPB’s website for covered loans, and ensure the financial institution has documented whether it qualifies for the rural / underserved TILA exemption by originating at least one covered loan in a rural or underserved area and that documentation of the determination is retained for record retention.

BSA Compliance:

• Schedule a Board review and approval of current BSA/AML and OFAC program policies.
• Update the BSA/AML and OFAC Risk Assessments.
• Ensure annual training was conducted for all employees during 2021 and is scheduled for 2022.  Furthermore, the Board of Directors should also be receiving annual BSA training, which should be documented in the Board minutes.
• Annual reviews should be conducted of all exempt customers for suspicious activity and continued eligibility.
• Update procedures for monitoring high-risk customers and reevaluate the risk levels of each customer designated as high risk.
• Ensure annual due diligence is completed for MSBs, remote deposit capture, private ATM customers, deposit brokers, etc. in accordance with the financial institution’s BSA/AML program.
• Review 314(a) contact information transmitted with the call report for accuracy.
• For institutions that voluntarily share information, ensure 314(b) registration is completed annually.

On December 10, 2020, the CFPB issued two final rules relating to the qualified mortgage (QM) definition under the Truth in Lending Act and its implementing Regulation Z, referred to as the General QM Final Rule and the Seasoned QM Final Rule.  The effective date of both the General QM Final Rule and the Seasoned QM Final Rule was March 1, 2021, and the CFPB also established a mandatory compliance date for the General QM Final Rule of July 1, 2021.

Another category of QMs currently available under Regulation Z, referred to as the Temporary GSE QM loan definition, consists of loans that are eligible for purchase or guarantee by either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation (collectively, the GSEs), while operating under the conservatorship or receivership of the Federal Housing Finance Agency (FHFA). Pursuant to a final rule issued on October 20, 2020, the Temporary GSE QM loan definition is scheduled to expire on (1) the mandatory compliance date of the General QM Final Rule or (2) with respect to each GSE when that GSE ceases to operate under the conservatorship of FHFA, whichever happens earlier.

On April 27, 2021, the CFPB issued a final rule extending the mandatory compliance date of the General QM Final Rule from July 1, 2021, to October 1, 2022. While the April 2021 Final Rule extends the General QM Final Rule’s mandatory compliance date, it does not change the General QM Final Rule’s effective date.

As previously noted, the General QM Final Rule was effective on March 1, 2021. For applications received on or after March 1, 2021, but before the mandatory compliance date of October 1, 2022, creditors that seek to originate General QM loans have the option of complying with either the revised, price-based General QM loan definition or the original, total monthly debt to total monthly income (DTI)-based General QM loan definition. Only the revised, price-based General QM loan definition is available for applications received on or after the October 1, 2022, mandatory compliance date.

Additionally, the April 2021 Final Rule affects the expiration of the Temporary GSE QM loan definition or “Patch.” Under the April 2021 Final Rule, the Temporary GSE QM loan definition will expire on October 1, 2022, or the date the applicable GSE exits conservatorship, whichever comes first. However, the practical availability of the Temporary GSE QM loan definition may be affected by policies or agreements created by parties other than the CFPB, such as the Preferred Stock Purchase Agreements (PSPAs), which include restrictions on GSE purchases that rely on the Temporary GSE QM loan definition after July 1, 2021.

The CFPB is also considering whether to initiate a rulemaking to revisit the Seasoned QM Final Rule. If the CFPB decides to do so, it expects that it will consider in that rulemaking whether any potential final rule revoking or amending the Seasoned QM Final Rule should affect covered transactions for which an application was received during the period from March 1, 2021, until the effective date of such a final rule. 

The CFPB has released additional resources regarding the Ability-to-Repay (ATR)/QM Rule, which includes an executive summary of the Final General QM and Seasoned QM Rules, updated charts and an updated small entity compliance guide.

These resources are available at the following link:
https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/ability-repay-qualified-mortgage-rule/

On March 11, 2021, the Federal Reserve, Farm Credit Administration, FDIC, NCUA, and OCC (joint agencies) proposed Interagency Questions and Answers Regarding Private Flood Insurance.
The proposal is intended to help lenders comply with the agencies' joint rule promulgated in 2019 to implement the private flood insurance provisions of the Biggert-Waters Flood Insurance Reform Act of 2012.

The proposal incorporates new questions and answers in several areas including:

• Mandatory Acceptance,
• Discretionary Acceptance, and
• Private Flood Insurance General Compliance

These FAQs supplement the 118 Interagency Questions and Answers Regarding Flood Insurance that the agencies proposed on July 6, 2020, which revised and reorganized the existing FAQs into new categories by subject to enhance clarity and understanding for users and introduced new FAQs on the escrow of flood insurance premiums, force placement of flood insurance, and the detached structures exemption.

The FAQ documents are intended to help lenders meet their responsibilities pursuant to the federal flood insurance laws that were last updated in 2011. Once finalized, the new FAQs will supersede the 2009 and the 2011 Interagency Questions and Answers, and supplement other guidance or interpretations issued by the agencies relative to loans in areas having special flood hazards.  Compliance Officers should closely review the FAQs to ensure flood insurance processes are up to date with the latest joint agency guidance to avoid costly flood insurance violations and penalties.  The maximum civil money penalty per flood insurance violation is $2,252.00 for each violation occurring on or after January 15, 2021. 

Review the July 6, 2020, proposed FAQs at the following link:
https://www.fdic.gov/news/press-releases/2020/pr20077a.pdf

Review the March 11, 2021, proposed private flood insurance FAQs at the following link:
https://www.fdic.gov/news/financial-institution-letters/2021/fil21016a.pdf

​On June 10, 2021, the CFPB posted a series of eight frequently asked questions (FAQs) on unauthorized electronic fund transfers and error resolution under Regulation E on a new Electronic Fund Transfers compliance resource webpage.
 
The FAQs address these topics:
 

• Fraudulent inducement to share account access information
• Consumer negligence and liability for unauthorized EFTs
• Modification or waiver of Regulation E protections
• Regulation E and private network rules
• Conditioning error investigations on police reports, etc.
• Requiring a consumer to contact the merchant before starting an investigation
• Determining consumer liability for unauthorized EFTs

 
These FAQs provide new insight and clarification on some key areas of Regulation E regarding EFT error resolution rules and commentary in Section 1005.11.  It is recommended that Compliance Officers closely review the new FAQs to ensure processes are up to date with current regulatory guidance and to avoid consumer harm in the EFT error resolution process. 
 
The FAQs can be viewed in their entirety at the following link:
 
Electronic Fund Transfers FAQs | Consumer Financial Protection Bureau (consumerfinance.gov)  

On May 18, 2021, the OCC announced through issuing OCC Bulletin 2021-24 that it will reconsider the final Community Reinvestment Act rule published on June 5, 2020, which applied to national banks and federal savings associations under its supervision.  While this reconsideration is ongoing, the OCC has indicated it will not object to the suspension of the development of systems for, or other implementation of, provisions with a compliance date of January 1, 2023, or January 1, 2024, under the 2020 rule.
 
At this time, the OCC also does not plan to finalize the December 4, 2020, proposed rule that requested comment on an approach to determine the CRA evaluation measure benchmarks, retail lending distribution test thresholds, and community development minimums under the June 2020 rule. In addition, the OCC is discontinuing the CRA information collection pursuant to the Paperwork Reduction Act (PRA) notice published in the Federal Register in December 2020.
 
Per the bulletin, while this reconsideration is ongoing, the OCC will not implement or rely on the evaluation criteria in the June 2020 rule pertaining to:

• Quantification of qualifying activities (12 CFR 25.07 and 25.08).
• Assessment areas (12 CFR 25.09).
• General performance standards (12 CFR 25.10 through 25.13).
• Data collection (12 CFR 25.21).
• Recordkeeping (12 CFR 25.25); and
• Reporting (12 CFR 25.26).

 
The bulletin also indicated the OCC will continue to implement the provisions of the June 2020 CRA rule that had a compliance date of October 1, 2020. The OCC interpreted and explained these provisions and implementation efforts in OCC Bulletin 2020-99, which include:

• Issuance of OCC Bulletin 2021-5 providing bank type determinations, lists of distressed and underserved areas, and the median hourly compensation value for community development service activities.
• Deployment of the CRA Qualifying Activities Confirmation Request process for banks and other stakeholders to request confirmation whether an activity meets the qualifying criteria under the June 2020 CRA rule; and
• Providing training on provisions of the June 2020 rule with the October 1, 2020, compliance date in a series of webinars for examiners and bankers.

 
The OCC’s actions are intended to provide for an orderly reconsideration of the June 2020 rule and provide banks with more flexibility to deploy resources in response to the COVID-19 pandemic. These actions also intend to provide the OCC with the opportunity to consider additional stakeholder input, to evaluate issues and questions that have been raised, to reassess the necessary data, and to take additional regulatory action, as appropriate.
 
Review the entire bulletin regarding the OCC’s reconsideration of its CRA rules at the following link:

https://www.occ.gov/news-issuances/bulletins/2021/bulletin-2021-24.html
​
OCC supervised institutions are reminded to maintain appropriate documentation for CRA examination purposes required under OCC Bulletin 2020-99. Such documentation includes the qualifying criteria met by the activity, the area(s) served by the activity, and the date and amount of the activity (including the basis for full or partial consideration). Certain banks previously subject to data collection and reporting under the 1995 CRA framework will continue to report large bank CRA data during the transition period, as specified in OCC Bulletin 2020-99.
​
Review the entire bulletin regarding the Community Reinvestment Act: Key Provisions of the June 2020 CRA Rule and Frequently Asked Questions at the following link:
​
https://occ.gov/news-issuances/bulletins/2020/bulletin-2020-99.htm

The CFPB and other prudential regulators have recently announced several updates on topics related to fair lending.  Below is a brief summary of each and link for further review.
HUD has issued a memorandum announcing that it will administer and enforce the Fair Housing Act to prohibit discrimination on the basis of sexual orientation and gender identity. On January 20, 2021 President Biden issued an Executive Order addressing the Supreme Court’s decision in Bostock v Clayton County, which held that the prohibitions against sex discrimination in the workplace contained in Title VII of the Civil Rights Act of 1964 extend to and include discrimination on the basis of sexual orientation and gender identity.

HUD to Enforce Fair Housing Act to Prohibit Discrimination on the Basis of Sexual Orientation and Gender Identity | HUD.gov / U.S. Department of Housing and Urban Development (HUD)
 
The CFPB issued an interpretive rule on March 9, 2021 which clarifies that the prohibition against sex discrimination under the Equal Credit Opportunity Act and Regulation B also prohibits discrimination on the basis of gender identity & sexual orientation. This prohibition also covers discrimination based on actual or perceived nonconformity with traditional sex- or gender-based stereotypes, and discrimination based on an applicant’s social or other associations.

Equal Credit Opportunity (Regulation B); Discrimination on the Bases of Sexual Orientation and Gender Identity (consumerfinance.gov)
 
The CFPB has also published a statement regarding the provision of financial products and services to consumers with limited English proficiency. The statement provides principles and guidelines to inform and assist financial institutions seeking to better serve consumers in non-English languages.

https://www.consumerfinance.gov/about-us/blog/bureau-takes-additional-steps-to-foster-an-inclusive-financial-system/
 
The FDIC has released nine technical assistance videos covering fair lending.  The videos are available on the FDIC Banker Resource Center.  The videos provide a high-level overview to help FDIC-supervised institutions assess and mitigate fair lending risk.  The videos also provide insight to help understand how FDIC examiners evaluate fair lending compliance.

FDIC: Technical Assistance Video Program
​

The Small Business Administration along with consultation from the U.S. Treasury Department issued additional frequently asked questions about the Payroll Protection Program and how it pertains to the Bank Secrecy Act. On February 1, 2021, FinCEN published two additional frequently asked questions to provide guidance on Second Draw PPP loans.

Additionally, on February 2, 2021, FinCEN issued an advisory about an increase in health insurance fraud due to COVID-19. The advisory lists possible types of health insurance fraud, how it occurs, and red flags that may indicate possible health insurance fraud as well as a case study to help providers and financial institutions to further prevent and identify any fraud schemes.

PPP FAQs: Frequently Asked Questions (FAQs) as of February 1, 2021 (fincen.gov)
​
Health Insurance Fraud Advisory: COVID-19 Health Care Advisory (fincen.gov)

 By James M. Moore, CRCM
 
One more year has passed, and we are faced with the new challenges of 2021.  Anyone with a compliance background understands there is no such thing as a fresh start for a new year.  The following is a list of reminders and updates to make sure you are heading in the right direction for the New Year. 
 
Deposit Compliance:

• Regulation CC training should have been provided during 2020 and make plans to provide Reg. CC training during 2021.
• Regulation CC hold thresholds remain at $225 (next day) and $5,525 (exception) until July 1, 2025.
• Annual privacy training should have been provided for 2020 to all employees and make sure annual privacy training is scheduled for 2021.  Furthermore, ensure that the Board of Directors has received privacy training.
• Ensure annual privacy disclosures will be mailed during 2021 or verify the institution’s exemption status for 2021.   
• Determine the number of remittance transfers under Regulation E from the previous calendar year to ensure the institution has not exceeded the threshold for “normal course of business” of 500 consumer transfers.
• Ensure the ID Theft Program administrator has reported to the Board annually on the status of the ID Theft Program.

 Loan Compliance:

• The 2020 HMDA LAR and CRA LAR for large institutions must be submitted by March 1, 2021.
• Check the historic examples for HELOC and ARM application disclosures to ensure the most recent 15 years are used in the examples.
• The CRA Public File should be updated by April 1, 2021.
• Check the accuracy of the affiliated business disclosures to ensure all affiliated businesses are disclosed along with the current range of fees and the current ownership interest of each affiliated business.
• The 2021 HOEPA points and fees test will use the following:
  • 5% of loan amounts of $22,052 or more
  • For a loan amount less than $22,052, the lesser of 8% or $1,103
• The 2021 QM points and fees test will use the following:
  • For a loan amount greater than or equal to $110,260: 3% of the total loan amount
  • For a loan amount greater than or equal to $66,156 but less than $110,260: $3,308
  • For a loan amount greater than or equal to $22,052 but less than $66,156: 5% of the total loan amount
  • For a loan amount greater than or equal to $13,783 but less than $22,052: $1,103
  • For a loan amount less than $13,783: 8% of the total loan amount
• The 2021 Truth In Lending threshold is $58,300 for loans not secured by real property and private education loans.
• The 2021 “small creditor” threshold is $2.230 billion as of December 31, 2020.
• The 2021 “small loan” exemption for HPML appraisal rules is $27,200.
• For 2021, the safe harbor credit card penalty fee is $29 for the first and $40 for subsequent late fees. 
• If the creditor allows borrowers to shop for any required services for TRID loans, it should update (as necessary) the written list provided with the Loan Estimate to identify at least one available provider for each settlement service for which the consumer is permitted to shop. 
• Ensure that employees and Directors have received fair lending and CRA training for 2020.  Training should be planned for 2021.
• Review the CRA asset size thresholds for 2021:
  • FDIC or Federal Reserve supervised institution CRA asset size thresholds for 2021 are under $330 million for small bank (based upon both of the last two calendar years), at least $330 million up to $1.322 billion for intermediate small bank (based on either of the two last calendar years), and $1.322 billion and over for large bank (based upon both of the last two calendar years).
  • OCC supervised institution CRA asset size thresholds for 2021 based on new rule are $600 million or less for small bank (based on 4 out of 5 previous quarters), $2.5 billion or less for intermediate bank (based on 4 out of 5 previous quarters), and large bank greater than $2.5 billion (based on 4 out of 5 previous quarters).
    • Note: Institutions in the transition period are evaluated as small, intermediate small, or large based upon status on October 1, 2020. 
• The HMDA asset size threshold for depository institutions for 2021 is $48 million.
• In addition to meeting the above HMDA asset threshold, an institution must have in each of the two preceding calendar years, originated at least 100 or more covered closed-end dwelling secured loans to report closed-end loans.  Dwelling secured open-end lines of credit must be reported in 2021 if a covered institution originated 500 or more covered dwelling secured open-end lines of credit in each of the previous two calendar years.  Ensure a review of 2019 and 2020 transaction data is conducted for 2021 reporting requirements. 
• Ensure procedures are in place for performing escrow account analyses and that the financial institution has implemented procedures for providing annual escrow account notices.
• Ensure loan officers completed S.A.F.E. Act license renewal procedures.
• Ensure an annual independent S.A.F.E. Act audit has been performed.
• Ensure lenders who receive compensation based on insurance sales (credit life/disability) complete license renewal procedures.
• Ensure the financial institution has documented whether they meet the definition of a small servicer and that documentation of the determination is retained for record retention.
• Ensure the financial institution has documented whether they meet the definition of a small creditor and that documentation of the determination is retained for record retention.
• Review the final list or rural or underserved counties for 2020, calculate rural or underserved status by address on the CFPB’s website for covered loans, and ensure the financial institution has documented whether or not it qualifies for the rural / underserved TILA exemption by originating at least one covered loan in a rural or underserved area and that documentation of the determination is retained for record retention.

 BSA Compliance:

• Schedule a Board review and approval of current BSA/AML and OFAC program policies.
• Update the BSA/AML and OFAC Risk Assessments.
• Ensure annual training was conducted for all employees during 2020 and is scheduled for 2021.  Furthermore, the Board of Directors should also be receiving annual BSA training, which should be documented in the Board minutes.
• Annual reviews should be conducted of all exempt customers for suspicious activity and continued eligibility.
• Update procedures for monitoring high-risk customers and reevaluate the risk levels of each customer designated as high risk.
• Ensure annual due diligence is completed for MSBs, remote deposit capture, private ATM customers, and deposit brokers in accordance with the financial institution’s BSA/AML program.