Oregon Issues Notice of $600 One-Time Assistance Payments

The Oregon Department of Revenue (OR DOR) issued a Notice to financial institutions: New State of Oregon automated clearing house (ACH) company entry description for One-time Assistance Payments.

The State of Oregon will be processing one-time assistance payments (OTAP) authorized by Oregon HB 4157, passed in the 2022 Oregon Legislative session. These payments will be processed using a new company entry description for ACH payments. OTAPs authorized by HB 4157 will use the company discretionary data field description “ORSTRELIEFXX,” as described below. The ACH transaction amount will be $600.

Credit unions should be prepared to begin receiving OTAPs with the new company entry descriptions. This notice is being provided to allow financial institutions to make any processing or system preparations necessary to receive these payments.

In accordance with the National Association of Automated Clearing House Association (“NACHA”) operation rules, State of Oregon payments will be issued with the following descriptors:

The “XX” indicator in positions 31-32 of the “Company Discretionary Data” field identifies an OTAP as exempt from all garnishments. The following table maps certain field values found in the ACH Company/Batch Header (“5”) record of OTAPs processed by Oregon State Treasury.

Company Name
(Field 3, Positions 5-20)

Company Discretionary Data
(Field 4, Positions 21-30)

Company Discretionary Data
(Field 4, Positions 31-32)

OR REVENUE DEPT ORSTRELIEF XX

Questions relating to the processing of the State of Oregon OTAP payments should be directed to Matt Claflin.

The OR DOR also issued a Notice to financial institutions: Treasury Checks for Oregon One-Time Assistance Payments.

As authorized by Oregon HB 4157, beginning the week of June 20, 2022, the State of Oregon will begin printing and mailing one-time assistance payment (OTAP) checks to Oregonians meeting the statutory eligibility requirements defined in HB 4157. The check for OTAP will physically appear to be the same as the State of Oregon check for a tax refund payment except for additional wording over the Pay Exactly line “ECONOMIC IMPACT PAYMENT – NOT SUBJECT TO GARNISHMENT”. The check amount will be $600 and will be signed by Betsy Imholt, Director of the Oregon Department of Revenue.

Oregon’s OTAP are not subject to garnishment. The OTAP checks have the same security features as the State of Oregon check for a tax refund payment. Questions regarding the OTAP disbursement process can be directed to Matt Claflin at Matthew.F.CLAFLIN@dor.oregon.gov

 

Question of the Week

Q: For BSA-AML Risk Assessment purposes, would a business account for a vehicle dealership be classified as a Money Service Business (MSB) or another type of the special classifications?  

A: FinCEN defines Money Service Businesses as a distinct category of financial service providers including currency dealers, check cashers, issuers of traveler’s checks or money orders, seller or redeemer of traveler’s checks, money transmitters, and the U.S. Postal Service. Vehicle dealerships are not on this list.

BSA/AML requires credit unions to develop a compliance program. Credit unions are urged to use a risk-based approach with this program. In other words, they should develop procedures that take into consideration the risks associated with the membership, the service and products offered, and geographic location. In terms of membership, BSA/AML is particularly interested in cash-intensive businesses such as convenience stores, restaurants, retail stores, liquor stores, cigarette distributors, privately-owned ATMs, vending machine operators, and parking garages.

Whether you classify vehicle dealerships as high risk or low risk depends on your own BSA/AML policy tolerances. Credit unions should consider collecting the following information when opening higher-risk accounts: purpose of account; member’s occupation or type of business; banking references; financial statements; source of funds/wealth; beneficial owners of the account (if applicable), etc. Credit unions are expected to apply enhanced customer due diligence procedures when opening accounts that fall into higher risk categories.

Related Links

BSA/AML Risk Assessment – Overview
Customer Due Diligence – Overview

Compliance Alerts

Consumer Financial Protection Bureau

CFPB Publishes Beginner’s Guide to Accessing and Using Home Mortgage Disclosure Act Data: The CFPB published the Beginner’s Guide to Accessing and Using Home Mortgage Disclosure Act Data as a resource to support a range of stakeholders in accessing and using this information. The Beginner’s Guide is designed to support users by providing (1) An explanation of what the data fields are and which institutions report them; (2) data products available to the public and how to access and use them; and (3) step-by-step instructions on how to create useful data summaries for specific geographies.

CFPB Launches Initiative to Improve Customer Service at Big Banks: The Consumer Financial Protection Bureau (CFPB) is seeking public input on how bank customers can assert their rights to better customer service with big banks. A 2010 federal law specifies that consumers have the right to obtain timely responses to requests for information about their accounts from large depository institutions. In today’s Request for Information, the CFPB seeks data about, and consumer experiences with, the obstacles that may prevent people from receiving high standards of customer service and high-quality human interactions with their banks or credit unions.

CFPB Blog: Buy Now, Pay Later and Credit Reporting: The CFPB released a blog post related to Buy Now, Pay Later (BNPL) short-term, no-interest consumer credit products. The CFPB believes that when BNPL payments are furnished it is important that lenders furnish both positive and negative data.

CFPB Blog: Measuring the Impact of Financial Institution Overdraft Programs on Consumers: In December 2021, the CFPB released two research reports on checking account overdraft fees, detailing how banks continue to rely on these fees as a major source of revenue and how they do not compete on transparent, upfront pricing. Since the beginning of the year, the CFPB has been piloting a supervision effort to collect key metrics from some supervised institutions regarding the consumer impact of their overdraft and non-sufficient fund (NSF) practices.

National Credit Union Association

NCUA Releases Q1 2022 State-Level Credit Union Data Report: Federally insured credit unions experienced growth in assets, shares and deposits, and loans outstanding over the year ending in the first quarter of 2022, according to the latest Quarterly U.S. Map Review released by the National Credit Union Administration.

FFIEC Announces the Availability of 2021 Data on Mortgage Lending: The Federal Financial Institutions Examination Council (FFIEC) announced the availability of data on 2021 mortgage lending transactions reported under the Home Mortgage Disclosure Act (HMDA) by 4,338 U.S. financial institutions. Covered institutions include banks, savings associations, credit unions, and mortgage companies.

NCUA Board Briefed on Post-Examination Survey Project: The NCUA Board was briefed on the results of the NCUA Post-Examination Pilot Survey. The pilot survey was administered by the NCUA’s Ombudsman, Sept. 20, 2021 – March 31, 2022, and included five questions focused on pre-examination, reporting, and post-examination requirements along with one open-ended question. Federal credit unions were invited to voluntarily participate in the pilot survey at the conclusion of a regular examination.

Financial Crimes Enforcement Network

FinCEN Issues Advisory on Elder Financial Exploitation: The Financial Crimes Enforcement Network (FinCEN) is issuing an advisory to alert financial institutions to the rising trend of elder financial exploitation (EFE). EFE involves the illegal or improper use of an older adult’s funds, property, or assets, and is often perpetrated either through theft or scams. The advisory highlights new EFE typologies and red flags since FinCEN issued its first advisory on the issue in 2011. FinCEN’s EFE advisory highlights behavioral and financial red flags to aid financial institutions with identifying, preventing, and reporting suspected EFE. In line with the risk-based approach to compliance with the Bank Secrecy Act, financial institutions should perform additional due diligence where appropriate and remain alert to any suspicious activity that could indicate that their customers are perpetrators, facilitators, or victims of EFE.

Federal Reserve Board

Federal Reserve issues FOMC Statement: The Federal Reserve System issued a statement on the Committee’s decision to raise the target range for the federal funds rate to 1-1/2 to 1-3/4 percent and anticipates that ongoing increases in the target range will be appropriate. The current increase raises the target range 75 basis points from the previous range. Credit unions should review their Interest Rate Risk policies and procedures to adequately prepare for the current rate increase and potential future increases.

Internal Revenue Service

IRS Increases Mileage Rate for Remainder of 2022: The Internal Revenue Service announced an increase in the optional standard mileage rate for the final 6 months of 2022. For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year.

Office of Foreign Assets Control

Notice of OFAC Sanctions Actions: The U.S. Department of the Treasury Office of Foreign Assets Control publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific. Collectively, such individuals and companies are called “Specially Designated Nationals” or “SDNs.”

Questions? Contact the Compliance Hotline: 1.800.546.4465; compliance@nwcua.org.

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