Compliance Journal November 2024
Special Focus FDIC Extends Mandatory Compliance Date to Implement Revised FDIC Signage Rule to May 2025 The Federal Deposit Insurance Corporation (FDIC) announced an extension of the mandatory compliance date for implementation of changes made to the rules which set forth where the official FDIC sign need appear within a branch and for the display of a new official sign on a bank’s website, mobile applications, and certain ATMs and other like devises (Part 328). The amendments were made by a final rule first issued on 12/20/2023, which took effect on 04/01/2024; however, full compliance with the amendments was set for 01/01/2025. FDIC has extended the mandatory compliance date to provide additional opportunity for banks to establish processes and systems, and make technological updates, necessary to implement the new regulatory requirements. Banks now have until 05/01/2025. To assist with implementation, FDIC has hosted several webinars regarding the amendments. FDIC has committed to a fourth webinar, although the date of the webinar has not yet been released. The webinars have been hosted via MS Teams. Information regarding the webinars, including past webinar materials and where an announcement of the date for the fourth webinar will appear, may be viewed at: https://www.fdic.gov/resources/deposit-insurance/banker-webinar FDIC has also created a set of frequently asked questions (FAQs) which are updated often. WBA has outstanding questions previously shared with FDIC regarding the revised rule which we hope will be answered soon. The outstanding questions include whether systems such as Positive Pay, remote deposit capture, or transfers made via an 1-800 automated telephone system require the new digital signage given that the technologies allow for customers to access deposits. The FDIC FAQs may be viewed at: https://www.fdic.gov/deposit-insurance/questions-and-answers-related-fdics-part-328-final-rule See the “Regulatory Spotlight” section for a link to the final rule which extended the mandatory compliance date for Part 328 to May 2025.
WisDOT to Require Non-Exempt Secured Parties to Release Liens Electronically The Wisconsin Department of Transportation (WisDOT) has shared that in early January 2025, non-exempt secured parties will be required to release liens electronically. These efforts are to help stop fraud which has occurred against secured parties through fraudulent paper lien releases. The requirement is in accordance with the process established in 2010 under Wis. Stat. § 372.245 and Wis. Admin. Code ch. Trans. 148.03. Effective July 1, 2010, WisDOT created a process whereby non-individual secured parties (e.g., banks) are required to file all security interest statements on Wisconsin vehicle titles electronically as an update to the vehicle title record in the DMV database. To date, nearly all secured parties file electronically with WisDOT. As part of the 2010 process, WisDOT created an exemption from electronic filing if the secured party filed 48 or fewer security interest statements with WisDOT during the previous calendar year. The exemption remains and exempt secured parties are not affected by the WisDOT announcement. In addition to the announcement that non-exempt secured parties need use WisDOT’s electronic system, a series of frequently asked questions (FAQs) was created by WisDOT: