The Federal Reserve Board on Wednesday announced the annual indexing of the reserve requirement exemption amount and of the low reserve tranche for 2008.  These amounts are used in the calculation of reserve requirements of depository institutions.  The Board also announced the annual indexing of the nonexempt deposit cutoff level and the reduced reporting limit that will be used to determine deposit reporting panels effective 2008.   01.17.2008 The Federal Reserve Board issued the proposed amendments to Regulation Z (Truth in Lending) that are intended to improve the effectiveness of the disclosures consumers receive in connection with credit card accounts and other revolving credit plans by ensuring that information is provided in a timely manner and in a form that is readily understandable.   06.14.2008 On November 9, 2007, the OCC, Board, FDIC, OTS, NCUA and FTC (the Agencies) jointly issuing final rules and guidelines implementing section 114 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) and final rules implementing section 315 of the FACT Act. Section 315 requires each user of consumer reports to (1) develop reasonable policies and procedures it would employ when it receives a notice of address discrepancy from a CRA; and (2) to furnish an address the user reasonably confirmed is accurate to the CRA from which it receives a notice of address discrepancy. 11.01.2008   The Federal Reserve and the Treasury issued a final rule to implement the portions of the Unlawful Internet Gambling Enforcement Act (“Act”) relating to payment systems and their participants. The Act prohibits gambling organizations from accepting payments in connection with unlawful Internet gambling. Such payments are termed "restricted transactions." The Act also requires the FED to prescribe regulations requiring designated payment systems and their participants to establish policies and procedures reasonably designed to identify and block restricted transactions. 12.01.2009 Due to increased international money laundering activity, OFAC has deemed the ACH network as high risk for moving terrorist funds. Therefore, NACHA is implementing the following IAT (International ACH Transactions) rule changes: 1. Bank Secrecy Act (BSA) "Travel Rule" data elements will be included in 7 mandatory addenda records of the IAT entry. 2. RDFIs must identify IAT entries and conduct OFAC screening at the transaction level for all data elements included in the addenda records. 3. RDFIs must ensure that all aspects of inbound, cross-border transactions are in compliance with OFAC regulations; and ODFIs are obligated to ensure that all parties to transactions are not in violation of OFAC regulations.   03.20.2009 Under the tax reporting provision, payment settlement entities (defined to include merchant acquiring banks, third party settlement organizations, or third party payment facilitators acting on their behalf) would be required to report to the IRS and to the merchants the gross amount of reportable transactions. The requirement would apply to merchants that make more than $20,000 annually and have more than 200 transactions per year (which would likely be almost every FIS/Client merchant). "Reportable transactions" include any payment card transaction and any third party network transaction. Additionally, payment settlement entities would be required to obtain taxpayer IDs for each merchant to enable them to track, aggregate, and report the amount of transactions. If the taxpayer ID could not be verified, the payment settlement entity would have to withhold 28% of a small business's cash flow until the taxpayer ID number could be verified. Although payment settlement entities often obtain the taxpayer ID when accounts are opened, alternative numbers are often assigned for subsequent use and identification purposes to avoid having to store the taxpayer ID and increase the potential risk of identity theft. 01.01.2010 Copyright © 2008. Fidelity National Information Services. All Rights Reserved.
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