Suspicious Activity Report information needed by the Treasury Department and law enforcement agencies is often compromised by incomplete or inaccurate data fields, insufficient narratives and untimely filing of the reports, the Federal Deposit Insurance Corporation noted in its latest issue of Supervisory Insights (Winter 2007).

The Securities and Exchange Commission (SEC) has commenced a cost-benefit study of public companies’ implementation of Section 404 of the Sarbanes-Oxley Act (SOX). To fully avail itself of the results of the study, SEC Chairman Christopher Cox is recommending a further one-year delay in implementation of the auditor attestation requirements (Section 404(b)) for small businesses, including publicly owned community banks.

The federal banking agencies, the NCUA, and the FTC have approved final joint interagency rules that will implement Sections 114 and 315 of the Fair and Accurate Credit Transactions Act (FACT Act). The rules are effective on January 1, 2008 and the mandatory compliance date is November 1, 2008.

The Securities and Exchange Commission (SEC) has just released a brochure explaining in simple terms the management assessment that must be included in the annual report of internal control over financial reporting filed by smaller public companies, including community financial institutions for periods ending December 31, 2007. The upcoming 2007 annual report is the first year that the management assessment will need to be included for nonaccelerated filers.