Unit 1219: Banking Regulations and Compliance

1. Overview of Banking Regulations

• Introduction to banking regulations
• Key regulatory bodies (e.g., Federal Reserve, OCC, FDIC, SEC)
• Importance of regulatory compliance for financial stability and consumer protection
• Types of regulations: prudential, consumer protection, anti-money laundering

2. Dodd-Frank Act and Its Impact on Banking

• Background and objectives of the Dodd-Frank Act
• Key provisions:
  • Volcker Rule
  • Consumer Financial Protection Bureau (CFPB)
  • Enhanced risk management requirements
  • Resolution authority for failing banks
• Impact on risk management and systemic stability
• Consumer protection enhancements

3. Anti-Money Laundering (AML) Regulations

• Definition and significance of AML in banking
• Key AML regulations and acts (e.g., Bank Secrecy Act)
• Customer Due Diligence (CDD) and Know Your Customer (KYC) processes
• Suspicious Activity Reporting (SAR)
• Compliance program requirements and penalties for non-compliance

4. Basel III Accord and Capital Adequacy

• Overview of Basel Committee on Banking Supervision
• Basel III framework objectives
• Capital adequacy requirements:
  • Common Equity Tier 1 (CET1)
  • Tier 1 and Tier 2 capital
• Liquidity risk management (Liquidity Coverage Ratio, Net Stable Funding Ratio)
• Leverage ratio guidelines
• Impact on bank capital buffers and financial resilience

5. Consumer Protection Laws in Banking

• Overview of consumer protection principles
• Key legislations:
  • Truth in Lending Act (TILA)
  • Fair Credit Reporting Act (FCRA)
  • Equal Credit Opportunity Act (ECOA)
  • Fair Lending Regulations
• Regulatory agencies overseeing consumer protection
• Enforcement and compliance best practices

6. Compliance Management Systems

• Definition and importance of compliance management systems (CMS)
• Components of an effective CMS:
  • Risk assessment and management
  • Policies and procedures development
  • Training and awareness programs
  • Monitoring and auditing
  • Reporting and corrective action mechanisms
• Role of compliance officers and governance structures

7. Cybersecurity Regulations in Banking

• Cybersecurity threats and risks in banking
• Regulatory requirements (e.g., GLBA, FFIEC guidelines)
• Data protection and privacy laws impacting banking (e.g., GDPR, CCPA)
• Measures for safeguarding customer information
• Incident response and breach notification protocols

8. Compliance Audits and Regulatory Examinations

• Purpose and scope of compliance audits
• Types of regulatory examinations
• Preparation and documentation for audits
• Common findings and remediation strategies
• Role of external auditors and regulatory agencies

9. International Banking Regulations

• Overview of global banking regulatory environment
• Role of international organizations:
  • Financial Action Task Force (FATF)
  • Basel Committee on Banking Supervision
  • International Monetary Fund (IMF)
• Cross-border banking regulatory challenges
• Regulatory harmonization and its implications
• Anti-money laundering and counter-terrorist financing (AML/CTF) standards globally