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There are a number of U.S. regulatory agencies in existence today which closely
monitor the exchange of money across various industries. Regulations imposed
by these U.S. regulatory agencies could have varying impacts on your organization.
The following descriptions provide you with summary information about a number
of major U.S. regulatory agencies. These descriptions are intended to aid you
in your compliance and risk related initiatives. All summaries were taken from
government websites and include helpful links (located in the endnotes) where
you can find additional information.
The
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation (FDIC) directly examines and supervises
about 5,300 banks and savings banks, more than half of the institutions in the
banking system. Banks can be chartered by the states or by the federal government.
The FDIC preserves and promotes public confidence in the U.S. financial system
by
- Insuring deposits in banks and thrift institutions for up to $100,000
- Identifying, monitoring and addressing risks to the deposit insurance funds
- Limiting the effect on the economy and the financial system when a bank
or thrift institution fails.
The FDIC receives no Congressional appropriations – it is funded by premiums
that banks and thrift institutions pay for deposit insurance coverage and from
earnings on investments in U.S. Treasury securities.
http://www.fdic.gov
The Federal Reserve Banking System
The Federal Reserve System is compiled of a central, governmental agency – the
Board of Governors – and twelve regional Federal Reserve Banks.
In addition to other duties, the Federal Reserve System ensures that its members
adhere to the money laundering provisions of the Bank Secrecy Act by monitoring
the compliance of banks. These examinations consist of verification of an institution’s
compliance with recordkeeping and reporting requirements of the regulations.
National and state-chartered banks as well as trust companies are eligible to
become members of the Federal Reserve System.
The Federal Reserve Banks are the central banking system of the United States
created to provide the nation with a safer, more flexible, and more stable monetary
system.
The Federal Reserve Banks major duties are to:
- Carry out the nation’s monetary policy by influencing the money
and credit conditions in the economy.
- Supervise and regulate banking institutions and defend the credit rights
of customers.
- Maintain the stability of the banking system.
- Provide certain financial services to the U.S. government, the public,
financial institutions and foreign official institutions, including playing
a part in conducting the nation’s payments structure.
The Federal Reserve Banks do not receive funding appropriated by Congress.
http://www.federalreserve.gov
The Financial Crimes Enforcement
Network
The Financial Crimes Enforcement Network (FinCEN) is designed to support law
enforcement investigative efforts and foster interagency and global cooperation
against domestic and international financial crimes. FinCEN works toward this
through information collection, analysis and sharing, technological assistance
and implementation of the Bank Secrecy Act and other Treasury Department authorities.
FinCEN administers the Bank Secrecy Act and is responsible for expanding the
regulatory framework to industries vulnerable to money laundering, terrorist
financing and other crime. FinCEN also analyzes and shares the BSA information
with U.S. law enforcement at the federal, state, and local levels and its international
counterparts, to help them identify and track the financial aspects of criminal
investigations.
FinCEN is also the federal authority in the lead position of facilitating the
combined efforts of the regulators and law enforcement direction and policy regarding
USA Patriot Act compliance. FinCEN will be the vehicle through which Law Enforcement
will work to channel information to and from financial institutions.
http://www.fincen.gov
The National Credit Union Administration
The National Credit Union Administration (NCUA) was created to charter and supervise
all federal credit unions as well as state credit unions that are federally insured.
Through management of the National Credit Union Share Insurance Fund the NCUA
insures the majority of member deposits held in the nation’s credit unions.
The National Credit Union has three major roles:
- Charter and Supervise federal credit unions by establishing guidelines
for entry, standards for charter membership, and determining who has met
those standards.
- Manage the National Credit Union Share Insurance Fund and provide sturdy
financial support for the system.
- Manage the Central Liquidity Facility by providing an emergency fund source.
NCUA is funded by the credit unions it insures and receives no federal tax dollars
in the implementation of its goals.
http://www.ncua.gov/index.html
The Office of the Comptroller of
the Currency
The Office of the Comptroller of the Currency (OCC) charters, regulates and supervises
all national banks and the federal branches and agencies of foreign banks. The
OCC conducts onsite reviews of national banks and provides on-going supervision
of bank operations
The agency issues rules, legal interpretations, and corporate decisions concerning
banking, bank investments, bank community development activities and other aspects
of bank operations. Examiners study a bank’s loan and investment portfolios,
funds management, principal, liquidity, sensitivity to market risk and compliance
to consumer banking laws.
The OCC has the power to:
- Examine the banks.
- Approve or deny applications for new charters, branches, capital, or other
changes in the banking structure.
- Take supervisory actions against banks that do not comply with regulations.
- Remove officers and directors, negotiate agreements to change banking practices,
and issue cease and desist orders.
- Impose civil money penalties.
- Issue regulations governing bank investments, lending, and other practices.
The OCC funds its operations through assessments on national banks by charging
for examinations and the processing of corporate applications.
http://www.occ.treas.gov
The Office of Thrift Supervision
The Office of Thrift Supervision (OTS) is the primary regulator of federal and
state chartered savings associations, federal savings banks, and savings and
loan holding companies.
The federal thrift charter allows the thrift and its subsidiaries, as well as
its holding company and other affiliates, to operate under a single consolidated
regulator. The OTS has the authority to charter, examine, supervise and regulate
savings associations. Through examinations, the OTS assesses the financial condition
and risk profile of institutions, identifies violations of law and recognizes
potential economic problems. To combat money laundering, fraud and financial
crimes, thrifts are reviewed for compliance with the requirements of the Bank
Secrecy Act and the USA PATRIOT Act. The OTS may take formal enforcement actions
against these institutions, including removal and prohibition orders, cease and
desist orders and orders to pay civil penalties. The OTS also enforces the Community
Reinvestment Act.
OTS funds its operations through periodic assessments charged to the thrift industry
and receives no appropriated funds from Congress.
http://www.ots.treas.gov/default.cfm
The Securities Exchange Commission
The primary mission of the U.S. Securities and Exchange Commission (SEC) is to
protect investors and maintain the integrity of the securities markets. The SEC
oversees key participants in the securities world, including stock exchanges,
broker-dealers, investment advisors, mutual funds, and public utility holding
companies.
The laws and rules that govern the securities industry in the United States derive
from a simple and straightforward concept: all investors, whether large institutions
or private individuals, should have access to certain basic facts about an investment
prior to buying it. To achieve this, the SEC requires public companies to disclose
meaningful financial and other information to the public, which provides a common
pool of knowledge for all investors to use to judge for themselves if a company's
securities are a good investment.
http://www.sec.gov/index.htm
i Who is the FDIC? Federal Deposit Insurance Corporation. Retrieved 2/12/04 from http://www.fdic.gov/about/learn/symbol/index.html
ii The Federal Reserve Board Frequently Asked Questions. Retrieved 02/12/04 from http://www.federalreserve.gov/faq.htm
iii The Federal Reserve System Purposes & Functions. Retrieved 2/12/04 from http://www.federalreserve.gov/pf/pdf/frspurp.pdf
iv Financial Crimes Enforcement Network Mission Statement. Retrieved 2/12/04
from http://www.fincen.gov/af_mission.html
v Financial Crime Enforcement Network 2003-2008 Strategic Plan. Retrieved 2/12/04
from http://www.fincen.gov/strategicplan2003_2008.pdf
vi NCUA Strategic Plan. 2003-2008. Retrieved 2/12/04 from http://www.ncua.gov/ReportsAndPlans/plans-and-reports/NCUA_Strategic_Plan_2003-2008.pdf
vii NCUA Frequently Asked Questions. Retrieved 2/12/04 from http://www.ncua.gov/AboutNCUA/ncua_faq.html
viii Office of the Comptroller of the Currency. Retrieved 2/12/04 from http://www.occ.treas.gov/aboutocc.htm
ix United States Department of the Treasury Office of Foreign Assets Control,
Mission. Retrieved 2/12/04 from http://www.ustreas.gov/offices/eotffc/ofac
x Office of Thrift Supervision. http://www.ots.treas.gov/enforcement/search-form.cfm?catNumber=68&firstView=1
xi OTS Strategic Plan 2003-2008. http://www.ots.treas.gov/docs/480008.pdf
xii The Investor's Advocate: How the SEC Protects Investors and Maintains Market
Integrity. 7/21/2003 http://www.sec.gov/about/whatwedo.shtml |
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