News and topics of interest to financial institutions regulated by the Department of Banking and Finance Inside this issue: SAR Filings Known Criminal Activity October 2017 Action on Applications for the Month 2 The Department encourages all Georgia state-chartered financial institutions to develop a relationship with local law enforcement, as these relationships are invaluable in the fight against financial crime for both the individual institution and the financial services industry as a whole. However, when law enforcement agencies respond to an incident in process, one which may even result in an arrest of the perpetrator, the institution is not relieved of its responsibility to file a Suspicious Activity Report (SAR) with the Financial Crimes Enforcement Network (FinCEN) when the circumstances of the activity meet federal mandatory reporting requirements. Banks, bank holding companies, their subsidiaries, and federally-insured credit unions are required by Federal regulations to file a SAR with respect to: Criminal violations involving insider abuse in any amount. Criminal violations aggregating $5,000 or more when a suspect can be identified. Criminal violations aggregating $25,000 or more regardless of a potential suspect. Transactions conducted or attempted by, at, or through a financial institution or an affiliate and aggregating $5,000 or more, if the financial institution or affiliate knows, suspects, or has reason to suspect that the transaction: - May involve potential money laundering or other illegal activity (e.g., terrorism financing). - Is designed to evade the Bank Secrecy Act or its implementing regulations. - Has no business or apparent lawful purpose or is not the type of transaction that the particular customer would normally be expected to engage in, and the bank knows of no reasonable explanation for the transaction after examining the available facts, including the background and possible purpose of the transaction. The mandatory requirements listed above would include incidents that result in the arrest of the perpetrator. SAR filings in these instances are not only mandated, but aid law enforcement agencies in their efforts. FinCEN is a robust network and investigators use SAR data to identify patterns of criminal activity that lead to detection of other bad actors or larger criminal organizations. Georgia state-chartered financial institutions are reminded of Department Rule 80-9-1-.02 Suspicious Activities: State Financial Institutions which requires the filing of a SAR with the Department when a director, officer, employee, principal shareholder, known immediate family member, or related interest or affiliate of such person is involved; a financial institution is suspected of violating the law; or an affiliate or subsidiary of a financial institution is involved. A financial institution should also notify the Department when law enforcement or the financial institution's insurers, including surety companies, have been notified of the underlying activity. Further, the Rule requires financial institutions to comply with federal requirements for detecting and reporting any suspicious activities. Contact Supervisory Manager Justin McElheney at (770) 986-1643 for any questions concerning this article. NCUA Guidelines on Credit Union Owned Life Insurance The National Credit Union Administration (NCUA) has published guidance regarding employee benefits, including credit union owned life insurance, to the NCUA Online Examiner's Guide effective October 2, 2017. This guidance details the risks associated with the various products, regulatory expectations for accounting treatment and pre-purchase analysis, and various other resources. Refer to the Employee Benefits and Investment for Employee Benefits section of the Examiner's Guide at https://publishedguides.ncua.gov/examiner/Pages/default.htm for further details. Page 2 October 2017 Action on Applications for the Month The following is a summary of official action taken on applications by state financial institutions under Title 7, Chapter 1 of the O.C.G.A. and petitions for certificate of incorporation of financial institutions and other matters of interest during the month of October 2017: FINANCIAL INSTITUTION CONVERSIONS PREVIOUS NAME First National Bank South CONVERTED TO FNB South Alma, Bacon County APPROVAL DATE Pending EFFECTIVE DATE FINANCIAL INSTITUTION Fidelity Bank Atlanta APPLICATIONS TO ESTABLISH A BRANCH OFFICE BRANCH OFFICE APPROVAL DATE Macon 4290 Hartley Bridge Road Macon, GA 31216 Bibb County 10-30-2017 Fidelity Bank Atlanta Capital Circle 2101 Capital Circle NE Tallahassee, FL 32308 Leon County 10-30-2017 SunTrust Bank Atlanta Fox Mill Centre 6723 Fox Centre Parkway Gloucester, VA 23061 Gloucester County 04-10-2017 The First Port City Bank Bainbridge Seminole County 201 S. Woolfork Avenue Donalsonville, GA 39845 Seminole County 11-30-2016 Planters First Bank Cordele Albany 110 North Westover Boulevard Suite A Albany, GA 31707 Dougherty County 09-22-2017 Glennville Bank Glennville Statesboro 203 Savannah Avenue Statesboro, GA 30458 Bulloch County 09-01-2015 Bank of Newington Newington Springfield Georgia Highway 21 S. Springfield, GA 31329 Effingham County Pending BEGIN BUSINESS DATE 10-27-2017 10-02-2017 10-12-2017 10-02-2017 FINANCIAL INSTITUTION First Landmark Bank Marietta APPLICATIONS TO CHANGE LOCATION CHANGE LOCATION OF APPROVAL DATE Midtown From: 712 West Peachtree Street Atlanta, GA 30308 Fulton County 10-18-2017 To: 754 Peachtree Street Atlanta, GA 30308 Fulton County EFFECTIVE DATE Page 3 October 2017 PROPOSED NAME FNB South Trust Company Bank APPLICATIONS TO RESERVE A NAME COUNTY APPLICANT Bacon County Mr. John W. Sillay James-Bates-Brannan-Groover-LLP 231 Riverside Drive Macon, GA 31201 Cobb County Mr. Byron Richardson, Principal Bank Resources, Inc. 2451 Cumberland Parkway Suite 3618 Atlanta, GA 30339 FINANCIAL INSTITUTION MERGERS SURVIVOR Entegra Bank Franklin, NC MERGED INSTITUTION Chattahoochee Bank of Georgia Gainesville, GA LGE Community Credit Union Marietta, GA Coosa Valley Credit Union Rome, GA MECU Atlanta, GA North Georgia Community Federal Credit Union Ringgold, GA Guardian Bank Valdosta, GA Pelham Banking Company Pelham, GA DBF Outreach and Upcoming Speaking Engagements APPROVAL EFFECTIVE DATE DATE 09-29-2017 10-01-2017 10-12-2017 06-29-2017 10-01-2017 Pending Georgia Bankers Association Credit Conference: Commissioner Kevin Hagler will speak at the GBA Credit Conference, to be held at the Renaissance Waverly Hotel, Atlanta, Georgia, on December 7. The Department is the state agency that regulates and examines Georgia state-chartered banks, state-chartered credit unions, state-chartered trust companies, and bank holding companies that own Georgia state-chartered financial institutions. The Department also has responsibility for the supervision, regulation, and examination of Merchant Acquirer Limited Purpose Banks chartered in Georgia. In addition, the Department has regulatory and/or licensing authority over mortgage brokers, lenders and processors, mortgage loan originators, check cashers, sellers-issuers of payment instruments, money transmitters, and international banking organizations. Our Mission is to promote safe, sound, competitive financial services in Georgia through innovative, responsive regulation and supervision. Our Vision is to be a willing and able partner with our regulated entities in order to support vibrant economic growth and prosperity in Georgia. Subscribe to Receive this Publication: Notice of this publication is delivered to interested parties via e-mail. To subscribe to this publication as well as other items of interest, please visit our website at https://dbf.georgia.gov/. Department of Banking and Finance 2990 Brandywine Road, Suite 200 Atlanta, Georgia 30341-5565 Phone: (770) 986-1633 Fax: (770) 986-1654 or 1655 http://dbf.georgia.gov/