Measuring your compliance with Regulation O and ensuring that you’re effectively managing the risks associated with insider loans
We guide you on the best ways to meet the credit needs of insiders while staying within the boundaries of Regulation O.
Banks routinely extend credit to board members and other insiders. Still, it can be risky unless you thoroughly understand and adhere to Regulation O. There are issues of transparency to consider and the potential for conflicts of interest and favoritism.
Conducting Reg O reviews is a standard part of our services, and TCA consultants understand the regulation’s impact on your lending and overall risk.
Our team shows you the best way to comply with Reg O while supporting the needs of creditworthy insiders and avoiding financial penalties and reputational harm.
We root out any issues that may raise red flags with examiners and prepare you for your exam by:
- Looking at your written policies and procedures to be sure they define who’s considered an insider and reviewing your guidelines for lending to such prospects: lending limits, loan terms, the approval process, and so forth.
- Evaluating your documentation to ensure that your record-keeping is satisfactory and includes accurate loan files, agreements, disclosures, etc.
- Examining transactions to verify that insiders aren’t receiving preferential treatment on loan terms, interest rates, and repayment plans.
- Gauging the adequacy of internal controls and audit processes and whether they reflect your policies.
- Assessing whether your board of directors and staff thoroughly understand Reg O.
By the end of our review, you’ll gain a complete picture of your Reg O compliance strengths and weaknesses, and we’ll make recommendations about enhancing your program.
By working with TCA, you’ll find A Better Way to control Reg O risk and protect your bank when extending credit to insiders.
Key deliverables include:
- Identifying compliance gaps and recommending solutions
- Verifying whether the credit extended to insiders falls within Reg O’s lending limits
- Uncovering any evidence that insiders have improperly used their positions for personal gain
- Determining whether your insider lending processes are transparent and protect the interests of your bank
Additional Compliance Topics
Regulatory Updates – Third Quarter 2024
Below is a link to the Regulatory Updates as of the end of Q3 2024. TCA provides A Better Way for you to track Compliance updates and keep your organization on track. TCA – A Better Way!
Back to School: Ready for Regulators’ Pop Quizzes?
With the summer winding down, the kids will be heading back to school and facing tests and the dreaded pop quizzes. But they are not the only ones. Compliance pros also must be ready for regulators’ tough questions. If your regulator were to give you a pop quiz, would you be ready? See if you […]
Regulatory Updates – Second Quarter 2024
Below is a link to the Regulatory Updates as of the end of Q2 2024. TCA provides A Better Way for you to track Compliance updates and keep your organization on track. TCA – A Better Way!
AML Programs and Recent Consent Orders: What Questions Should you be Asking?
Last year’s news headlines screamed about financial crimes: the riveting cryptocurrency saga of Sam Bankman-Fried (SBF), Binance’s landmark $4.3 billion settlement with the Department of Treasury, and Deutsche Bank’s additional fines for anti-money laundering and sanctions failings. Other noteworthy stories entailed a parade of cybercrimes like ransomware and email scams. For those working in the […]
Planning for a Successful Automated Monitoring System (AMS) Validation by Understanding Common Findings
Your AMS plays a crucial role in helping financial institutions detect and prevent illicit activities. However, to ensure the effectiveness and compliance of these solutions, regular model validations are necessary and prescribed by Guidance on Model Risk Management from the prudential regulators. During validations, common findings often emerge and highlight opportunities for improvement. Here, TCA […]
Your Dream AML/CFT Home Starts with Good Bones
Build A Solid Foundation That Will Help You Detect and Combat Financial Crimes Prospective homebuyers want properties with “good bones,” whether buying new construction loaded with smart technology or a 200-year-old historic farmhouse that needs tender loving care. Good bones assure buyers that a property is structurally sound, provides a safe environment, and will be […]
