Contact Info

Address

4551 Cox Road, Suite 215
Glen Allen, VA 23060

Phone

804-965-5400

Email

information@oysterllc.com

Banks/ Trusts

Risk Assessments
Independent Anti-Money Laundering
New Rule Implementation

Deposit Regulations
Lending Regulations

Risk Assesments

Well implemented risk assessment programs are the best way to help your organization determine how to focus valuable resources.

Oyster Consulting’s experienced team will help improve your operations, limit your regulatory exposure, and reduce litigation costs.

Analyze the risk profile for your organization and implement actionable steps to improve your controls.
Provide help in conducting quantitative and qualitative reviews of your products, business practices, policies, technology and structure.
Determine the probability of experiencing a risk, and the potential severity.
Develop a risk matrix to focus your attention on things that deserve the most attention
Conduct a cost benefit analysis for implementing mitigating controls, and create efficient and effective solutions to help you manage your control environment.

Independent Anti-Money Laundering (AML)/ Bank Secrecy Act (BSA) Reviews

A strong AML program is vital to any financial services organization by protecting your firm from fraud, and providing a competitive advantage.

Regulators will continue to closely scrutinize organizations on how they define, implement and maintain their AML platform.
Oyster Consulting has the experience and expertise to assess your firm’s AML program and recommend practical solutions to improve your control environment:
- Policies and procedures against regulatory standards
- Customer identity process
- OFAC compliance
- Surveillance program
- Record keeping and documentation retention
- Suspicious Activity Reports (SAR) and Currency Transaction Reports (CTR) processes
- Provide guidance and procedures to assess customer risk.

New Rule Implementation

Many organizations struggle to keep up with the changing regulatory environment.

Oyster’s consultants have many years of experience successfully implementing change in response to the ever evolving regulatory environment. Oyster can help you institute a disciplined approach to changing regulations that will help your firm implement practical, thoughtful, and timely policies and processes to meet new obligations.

Maintaining your compliance program can be a struggle

Oyster Consulting has the experience and expertise to help you implement change and create or maintain a disciplined and effective compliance program.

Oyster can help you create and maintain your risk assessment and test your controls to keep you focused on the issues that matter to your firm.

2009 has been a busy year for new consumer protection laws and regulations. The agencies have adopted new examination guidelines and are training examiners to evaluate how well financial institutions have implemented controls to respond to new requirements.

The most significant changes have occurred and will continue to occur in the consumer lending area. Many of these regulations provide for regulatory enforcement such as fines and enforcement orders and a private right of legal action by consumers.

Bank Secrecy Act programs continue to be a significant focus of the regulators and Oyster can provide an independent review of the practices in your organization.

In addition to BSA, regulators are continuing to assess penalties for flood insurance violations, review disclosures related to overdraft protection programs, and are focused on red flags policies and procedures.

Some notable regulatory changes include:

Deposit Regulations

Law/Regulation	Requirements	Effective Date
ACH IAT Rules	Increases bank liability for international ACH transactions. Banks have additional duties as originating or receiving institutions	ACH IAT Rules
BSA e-filing	Requires e-filing of BSA forms in Adobe. Pure Edge forms will not be accepted	December 31, 2009
FDIC Insurance	Increases standard insurance coverage from $100,000 to $250,000 through 12/31/2013; new signage requirement Extends TAG insurance program (for non-interest bearing account/non-consumer accounts) through 06/30/2010 for banks that elect to participate in the “unlimited coverage” rules – new notice requirement Requires notices to sweep account customers Finalizes previously published rules on deposit insurance for trust accounts and mortgage servicing accounts.	May 20, 2009 August 27, 2009-with opt out by November 2, 2009 July 1, 2009 October 19, 2009
Reg D- Transaction Limits	Increases 3 to 6 the number of transfers/withdrawals from savings and MMAs made by check, ACH and other automated transfers (non-mandatory change)	July 1, 2009
Regulation CC- Routing Numbers	Consolidates a number of check processing operations and changes routing numbers for check clearance; may impact hold policies.	Various in 2009
Regulation DD-Overdrafts	Requires aggregate overdraft and NSF fees for each month and YTD over a rolling 12 month year.	January 1, 2010
Regulation DD-Available Balance	Prohibits the “Available Balance” delivered in electronic format (online banking, VRUs, ATMs) from including overdraft protection or similar funds	January 1, 2010
Reg GG- Internet Gambling	Implements controls to comply with Unlawful Internet Gambling Act of 2006 Requires additional due diligence when opening commercial deposit accounts to ensure that customers do not engage in illegal internet gambling activities Requires notice to commercial customers that illegal gambling transactions will not be processed	December 1, 2009

Lending Regulations
Law/Regulation	Requirements	Effective Date
HMDA-Higher Priced Mortgages	Requires identification on annual HMDA report of higher-priced mortgages (this requirement is in addition to HOEPA loans); this is a new category for the 2009 HMDA report to be filed in 2010	Mortgages closed on or after October 1, 2009
RESPA- Servicing Notice	Provides for new language in servicing notice	January 16, 2009
RESPA-Good Faith Estimate	Limits the ability of brokers and lenders to make changes on certain fees before settlement; rules are complex and may require multiple GFEs; this is a new form	Applications on or after January 1, 2010
RESPA-HUD-1	Revises HUD-1 form to 3 page format Pages 1 and 2 not significantly changed from older version; New page 3 requires comparison between GFE and HUD-1; Yield Spread Premiums must be disclosed even if not “passed on” to borrower	All transactions occurring on or after January 1, 2010 for which a new GFE was used (transition period may be required)
Reg Z-Early Disclosures	Applies to closed-end loans secured by a dwelling Early disclosures must be mailed or delivered within 3 days of application Fees (except credit report fee) may not be collected during 3-day period Closing may not occur until 7 days after providing early disclosures Closing may be delayed if APR changes require a new disclosure	Applications received on or after July 20, 2009
Reg Z- Higher Priced Mortgages (HPM)	Creates a new category of loans under the Home Ownership and Equity Protection Act Applies to closed-end consumer loans secured by principal dwelling if the APR exceeds the average prime offer rate (new index set weekly) by 1.5% for first lien or 3.5% for other lien Requires documented evidence of customer’s ability to repay the mortgage Limits on prepayment penalties Requires escrows for first lien mortgages	October 1, 2009 Loans closed on or after April 1, 2010
Reg Z and Reg AA – Mortgage Advertising	Changes requirements for content of mortgage advertisements including use of the word “fixed” when applied to rates or payments; new rules for misleading and deceptive advertising of ARMS and other variable rate mortgages	October 1, 2009
Reg Z – Private Education Loans	Requires new “up front” disclosures for loans made to financial higher education (does not apply to federal loan programs, credit card or real estate secured loans)	February 14, 2010
Reg Z- Open end statements	Prohibits creditors from charging late charges or declaring delinquency unless open end credit statements (including HELOCs) are delivered or mailed no less than 21 days before the payment is due	August 20, 2009
Reg Z -Credit CARD Act (Credit Card Accountability and Responsibility Act)	Amends Reg Z to limit financial impact on consumers with respect to the management of their credit card accounts. Amendments will be phased in with three interim rules starting August 16, 2009. New 21 day rule. (see box above) Change of terms notice for most credit card accounts must be mailed or delivered 45 days before effective date of change, including rate changes due to delinquency or default (not applicable to variable rate products) New requirements will change the content and appearance of the Schumer Box; Allows consumers to reject changes of terms under certain conditions Requires “grouping” of similar charges on periodic statements Payments received on due dates falling on weekend must be considered “on time” when processed on the next business day New requirements for advertising variable rates Provides for fair payment allocation Prohibits “two cycle” billing where customer pays in full	August 20, 2009 Most changes effective February 22, 2010; Fed will issue additional rules on penalty fees and changes to creditor re-evaluation of rate changes; effective August 22, 2010.
Reg AA – Unfair and Deceptive Practices Act	Amended to provider “enforcement arm” to the Credit Card regulations above by adding new definitions to “unfair and deceptive practices “	July 1, 2010