The first quarterly meetings of the Bankers Compliance Task Force supported by Jones Walker were held in Flowood, Mississippi, and Oxford, Mississippi, in January. A diverse range of activities took place, including a panel on section 1071 of the Dodd-Frank Act, an escheatment training, an overview of the results from the 2024 Community and Mid-Sized Banks Cybersecurity Survey, advertising training, and updates from the various federal banking agencies.
Three representatives from Bankers Compliance Task Force member banks that had started the 1071 implementation process agreed to sit on a panel to discuss practical issues that have arisen so far as well as other considerations for banks as they begin the process. The first step to take in the implementation process is to verify how many loans a bank has in order to determine its appropriate compliance tier and the related compliance dates for the collection and reporting of small business loan data. Other steps include determining whether the bank will use a third-party loan operating system, developing policies and procedures, training loan officers, and educating customers.
Following the 1071 panel discussion, escheatment training specific to Mississippi law was provided to help member banks determine which property is considered abandoned and certain actions that banks need to take prior to turning property over to the state. Abandoned or unclaimed property may include money left in older bank accounts, uncashed checks, uncashed paychecks, customer overpayments, abandoned safe deposit box contents, unused traveler's checks, uncollected insurance payments, forgotten stocks and dividends, unclaimed lottery winnings, unreturned utility deposits, and unused balances on gift cards. Every bank should have specific policies and procedures in place to determine the bank employee responsible for the escheatment process, what property is involved, the appropriate time periods, and making the reports to the appropriate state(s).
An advertising compliance training was also included as part of the meetings. There was a focus on social media advertising, as most banks now seem to have a presence on social media to reach a wide audience for low cost. All advertising rules, regulations, and requirements that are in place for print, radio, and television advertisements also apply to social media advertisements, with very few exceptions or distinctions. One of those exceptions is that the new, official Federal Deposit Insurance Corporation (FDIC) digital logo is not required for social media advertisements; however, the existing requirements to include "Member FDIC" or other approved variations do apply to social media ads. The training included a reminder of the 2013 Federal Financial Institutions Examination Council (FFIEC) Guidance on Social Media, which suggests every bank that uses social media for advertising should conduct a risk assessment and maintain an appropriate risk management program.
Some important notes from the agency updates included two redlining consent orders by the Department of Justice (DOJ). Both were against nonbank mortgage companies: one for lending patterns and practices in the Miami/Fort Lauderdale/West Palm Beach MSA and the other for lending patterns and practices in the Chicago and Boston areas. According to the DOJ, both companies underperformed compared to peers and were criticized for having all or nearly all office locations in majority-white areas. Additionally, both companies were criticized for making outreach efforts primarily to majority-white areas.
Additionally, the Consumer Financial Protection Bureau (CFPB) recently updated its FAQs on electronic fund transfers (EFTs) with the question of whether the compulsory use prohibition applies to tips. The CFPB's answer to this question is yes because tips can be a significant portion of compensation for some workers; therefore, employers are prohibited from requiring workers to establish an account with a particular financial institution to receive tips.
Future meetings of the Bankers Compliance Task Force supported by Jones Walker are scheduled for the dates and locations listed below.
Flowood, Mississippi, & Webex:
- April 30, 2025
- August 27, 2025
- November 18, 2025
Collierville, Tennessee
- April 29, 2025
- August 26, 2025
Oxford, Mississippi
- November 19, 2025
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