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        NDBA Joins State Bankers                                balance method, any transaction authorized against a positive

        Associations in Support of                              available balance does not incur an overdraft fee, even if the
                                                                transaction later settles against a negative available balance.
        Beneficial Ownership Bill
                                                                The FDIC also flagged recurrent issues related to RESPA Section
        NDBA joined more than 50 state                          8; Regulation E; loan programs that allow customers to skip a
        bankers associations in a letter to House               payment; and the calculation of finance charges and disclosures
        Financial Services Committee leaders in                 related to lines of credit.
        support of Maloney's bill calling for the               To read more visit:
        Financial Crimes Enforcement Network                    consumercomplsupervisoryhighlights.pdf
        to create a database of beneficial
        ownership information. The bipartisan
        bill – which would require corporations                 NDBA Joins State Associations
        and limited liability companies to self-report beneficial owners to   in Urging Cannabis Hearings in
        FinCEN at the time of formation – is expected to be considered by   Senate
        the committee this week.
                                                                NDBA has joined more than 50 state bankers associations in
        “While financial institutions go to great lengths to know their   urging the Senate Banking Committee to hold hearings on
        customer and follow all requirements to know the beneficial   legislative solutions to the conundrum faced by banks in states
        owner, there is no formal system in place to ensure that shell   where marijuana has been legalized. While the SAFE Banking
        companies are not hiding money to facilitate illegal activities,” the   Act passed the House Financial Services Committee in March, no
        associations wrote. They added that “while this legislation may   action has been taken on the companion bill in the Senate.
        be transformative for the United States, it would simply bring the
        U.S. in line with other developed countries.”           To read the letter visit:
        To read the letter visit:  Cannabis-hearing.pdf
                                                                Report: GOP Senators Give
        FDIC Flags Overdraft Issues

        in Consumer Compliance                                  Positive Signals on SAFE Banking
        Supervisory Highlights                                  Act
                                                                Two Republican
        The FDIC has released its first                         senators expressed
        edition of Consumer Compliance                          optimism that the
        Supervisory Highlights, a new                           Senate Banking
        publication intended to provide                         Committee will take up
        institutions with information                           the SAFE Banking Act,
        and observations related to the                         which would provide
        agency’s consumer compliance                            a framework under
        supervision activities. This issue                      federal law for banks to
        highlights findings from the                            serve legitimate cannabis businesses in states that have legalized the
        approximately 1,200 consumer                            drug, according to a recent news report.
        compliance examinations
        conducted by the FDIC in 2018.                          Senate Banking Committee member Kevin Cramer (R-N.D.) and
                                                                Sen. Rand Paul (R-Ky.) recently met with committee Chairman
        Among the key issues flagged by the FDIC was improper   Mike Crapo (R-Idaho) to discuss bringing the SAFE Banking Act
        disclosure of overdraft programs, which can lead to potential   up for consideration, the news outlet Marijuana Moment reported.
        unfair or deceptive practices violations. The FDIC noted that   “He didn’t say ‘hell no,’” Cramer told the outlet. “I thought he
        these issues can arise particularly with processing systems that   was quite open-minded to it.” Meanwhile, Paul said that “I think
        use an “available balance” method to assess overdraft fees. To   there’s a good chance they’re going to bring it up.”
        help mitigate overdraft-related risks, institutions can provide clear
        disclosures detailing how overdraft fees are assessed, the FDIC   To read more visit:
        noted. Additionally, they can ensure that when using an available   banking-bill-has-a-chance-in-the-senate-republican-lawmakers-say/

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