One of the most common questions involves Board Training. To ensure the Board can effectively carry out its oversight responsibility, Board training should include both a broad range of current regulatory areas in addition to regulator area changes on the horizon. Minimally, Board current compliance training should include areas such as the following at least annually, as applicable, for financial institutions:
- Penalties
- Board Responsibilities/Compliance Management System
- BSA, Money Laundering, OFAC, CIP, CDD, EDD, USA Patriot Act
- Suspicious Activity Reporting including Elder Financial Abuse, Marijuana-Related Activities, Human Trafficking, and Insider Abuse
- UDAAP (Unfair Deceptive and Abusive Acts and Practices)
- Third-Party Risk Management/Vendor Management
- Appraisals
- SAFE Act
- Regulation O
- Fair Lending Compliance
- Regulation B/Miscellaneous
- CRA for Intermediate Small Bank/Small Bank, etc. as applicable
- Regulation V – FACT Act/Identity Theft
- Credit Bureau Reporting Accuracy
- Flood Disaster Protection Act/Flood Insurance
- RESPA
- Reg. Z – Section 32, 35, 43
- TRID
- HMDA
- MLA/SCRA
- Customer Complaints (The financial institution should have policy and procedures; the policy should reference Board Reporting and trend analysis)
- Mortgage Servicing
Board training and education are essential. This is reviewed by examiners during regulatory examinations and is essential for the Board to carry out oversight responsibilities.
