Pub. 13 2018-2019 Issue 6

NEBRASKA BANKERS ASSOCIATION 23 Meet your challenges when they’re still opportunities. Visitrsmus.com/aboutus formore informationregardingRSMUSLLPandRSM International. RSMand our global network of technology andmanagement consultants specialize inworking with dynamic, growing companies. This focus leads to custom insights designed tomeet your specific challenges. Our experience, combinedwith yours, helps you move forwardwith confidence to reach even higher goals. rsmus.com WALENTINE O’TOOLE, LLP When time is of the essence, experience counts. Walentine O’Toole blends confidence, experience and knowledge with the personal attention you can expect from a regional law firm. www.w alentineotoole .com 402.330.6300 11240 Davenport St . • Omaha, NE 68154-0125 Sarah serves as Associate General Counsel for Compliance Alliance. She is an Honors Program graduate who graduated summa cum laude from Lamar University in Beaumont, Texas where she received her bachelor’s degree. While at Baylor Law School, Sarah heavily studied the financial aspects of the law—focusing her attention on secured transactions and the UniformCommercial Code. Before coming to Compliance Alliance, she worked at Frost Bank within their Credit Administration Department. As an attorney with Compliance Alliance, Sarah is eager to help members with their compliance and regulatory questions. Notably, however, the threshold that triggers the disclosure requirement for minimum interest charges remains unchanged. It will keep steady at $1.00 in 2019. These threshold adjustments become effective on Jan. 1, 2019. Now onto the Prepaid Accounts Rule Amendments (Amendments) – arguably one of the more major regulations to hit in 2019. The Amendments touch upon four areas: (1) the final effective date of the rule’s provisions; (2) error resolution and limited liability under Reg. E; (3) digital wallets; and (4) minor clarifica- tions and adjustments. The final effective dates set out by the Amendments place the entirety of the rule becoming effective on April 1, 2019. In regard to error resolution and limited liability, the Amendments provide that banks are not required to follow the li- ability nor error resolution provisions on unverified prepaid accounts other than on payroll card accounts or gov- ernmental benefit accounts. Further, for later-verified prepaid accounts, financial institutions are not required to follow those same provisions on disputed trans- actions that occurred before verification. The Amendments, for digital wallets, provide an exclusion for business rela- tionships between prepaid account issu- ers and issuers of traditional credit cards from the definition of “business partner.” This would, in turn, exempt the arrange- ments from the hybrid prepaid credit card rules. Lastly, the Amendmentsmake edits to both Regulation E and Regula- tion Z to correct typos, provide for more consistency between the rule and the regulations, and to correct other minor oversights. Again – the effective date for these changes is April 1, 2019. Finally, the Reg. CC amendments add a presumption and clarify the scope in disputes involving substitute/electronic checks and alterations/unauthorized signatures. The presumption addition may be summarized as follows: when an original (paper-based) check is not avail- able for inspection, it shall be presumed that a substitute or electronic check was altered in certain situations. It should be noted, however, that the breadth of the presumption is fairly limited. In conclusion, 2019 will pack quite a punch. Compliance Alliance can help you keep track of these changes, though. One tool we highly recommend is the Regulatory ChangeManagement Tracker: https://www.compliancealliance.com/ find-a-tool/tool/regulatory-change-man- agement-tracker – It is updated regularly and lists out major provisions of which banks should be aware. 