2015 Vol. 99 No. 1

30 Hoosier Banker January 2015 DIRECTORS / SENIOR MANAGEMENT In the volatile world of banking compliance, it is easy to lose foresight and perspective, and last year gave plenty of room to do so. While there may not have been as many regulatory updates as years past, regulatory changes became more complex, and the enforcement climate became hotter. Understanding examiner hot buttons in 2015 requires a retrospective look into the areas that were given the most attention in 2014. They still represent areas of weakness in many community financial institutions, which will lead to more scrutiny! 1. Mortgage rules. Myriad changes to mortgage rules, and the confusion surrounding them, are still causing concern and keeping community banks away from certain types of lending. There is not much relief in sight, as new changes and clarifications continue to be issued. 2. Capital rules. New rules imposing stricter requirements for capital and risk-weighting are having a negative impact on closely held community financial institutions. As new rules take effect in this year (with full implementation scheduled for 2019), banks need to understand how these changes impact their business and their strategies for cost-effective compliance. 3. Bank Secrecy Act . Regulators have renewed their interest in BSA, as evidenced by new guidance and clarifications extending into this year, especially as the geopolitical climate weakens in the Middle East. With BSA top of mind About the Author Pam Perdue is executive vice president, regulatory insight, for Continuity Control, New Haven, Connecticut. She previously served as chief compliance strategist and has more than 20 years of regulatory industry experience. A graduate of The Ohio State University, Perdue has worked as a federal examiner, chief compliance officer, educator and consultant. The author can be reached at 888-932-6759, ext. 201, email: Pperdue@continuity.net. Continuity Control is an associate member of the Indiana Bankers Association and an IBA Preferred Service Provider. Preparing Ahead by Looking Back: A Review of Top 10 Areas of Compliance Scrutiny

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