Association News

National and Regional Association News

FinCEN Director, Treasury Officials to Address Annual Money Laundering Enforcement Conference

The American Bankers Association and American Bar Association are jointly hosting the ABA/ABA Money Laundering Enforcement Conference, November 13-15, 2016, at the Washington Marriott Wardman Park Hotel.

 

The conference will feature keynote addresses from top government officials, including Jamal El-Hindi, Acting Director of the Financial Crimes Enforcement Network; Adam Szubin, Acting Under Secretary for Terrorism and Financial Intelligence, U.S. Department of the Treasury; and Juan C. Zarate, Chairman and co-Founder of the Financial Integrity Network.

 

In addition to the keynote speakers, nationally recognized banking and legal experts will lead more than twenty-five informative sessions on topics that include:

  • What is Keeping AML Officers Up at Night?;
  • Panama Papers – What is the Meaning For Your Institution?;
  • Money Laundering in the Virtual World;
  • Beneficial Ownership: So it’s a Final Rule…Now What?;
  • Mitigating Individual Liability Risks;
  • Navigating Increasingly Complex Sanctions Regimes; and
  • Hot Legal Cases and Enforcement Actions: How They Impact Your AML/Fraud Program.

 

For more information, visit the American Bankers Association website at www.aba.com.



ICBA to IRS:

Withdraw Tax Increase on Family Businesses

The Independent Community Bankers of America® (ICBA) today called on the Internal Revenue Service to withdraw a proposal to raise taxes on community banks, family farms and other family-owned businesses. In a comment letter, ICBA said the IRS plan would increase the estate tax on many community banks by more than 30 percent—exacerbating consolidation in the banking industry and harming local communities.

 

“Community banks thrive by developing small business and consumer relationships that span generations,” ICBA wrote. “The proposed regulation is a threat to this model of banking because it jeopardizes the transfer of community banks from generation to generation.”

 

The IRS proposal to amend Section 2704 of the tax code would effectively end estate-planning techniques commonly used to transfer community banks and other family-owned businesses to the next generation. Under the plan, transferring community banks and other businesses to family members would in many cases become unaffordable.

 

In today’s comment letter, ICBA told the IRS that significant changes to the estate tax should be left to Congress. Lawmakers and the presidential administration have debated reforms to the estate tax for years, clearly demonstrating that this is a congressional matter.

 

ICBA strongly supports H.R. 6100 and S. 3436, introduced by Rep. Warren Davidson (R-Ohio) and Sen. Marco Rubio (R-Fla.), respectively, to block the IRS proposed rule. Meanwhile, the association looks forward to continuing to work with the IRS to address community bank concerns with its proposal.

 

 

Illinois Bankers Association Responds to

CFPB Proposed Small Dollar Lending Rule

 

In a letter to the CFPB's Monica Jackson, Micah R. Bartlett, Illinois Bankers Association Chairman, and President and CEO of Town and Country Bank; and Linda Koch, IBA

President and CEO, wrote:

 

The Illinois Bankers Association is writing on behalf of its members to comment on the CFPB’s proposed small dollar lending rule. We appreciate the Bureau’s efforts to protect consumers from the threats posed by predatory nonbank lenders who trap consumers into harmful cycles of high-cost debt. However, we respectfully disagree with the proposed application of the Bureau’s rule to federally insured depository institutions. While consumers would be far better served if financial institutions were to expand their small dollar lending programs (which have been contracting in recent years due to increased regulatory concerns), the proposed rule effectively would disincentivize the vast majority of them from actively participating in this market at all.

 

If financial institutions are required to comply with the elaborate requirements of the proposed rule (including its three elaborate exemptions), this important source of credit for many consumers will be severely restricted, leaving them with few choices other than resorting to the same unscrupulous lenders that have proliferated across the country in recent years, sometimes online and sometimes directly across the street from a bank branch. These are the same “shadow” lenders that have been skirting federal and state consumer protection laws with great success to date, often by simply declaring bankruptcy when they are caught (if they are caught) and then beginning anew. Highly regulated financial institutions should be encouraged to serve their customers and communities with responsible small dollar lending programs. The proposed rule in its current form will have the exact opposite effect.

 

To read the entire letter, click here.

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