Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 29

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 29
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a number of significant rules that impact nearly every aspect of the lifecycle of consumer financial products and services, including
rules regarding residential mortgage loans. These rules implement Dodd-Frank Act amendments to ECOA, TILA and RESPA. Among other things,
the rules adopted by the CFPB require banks to: (i) develop and implement procedures to ensure compliance with a “reasonable ability-to-repay”
test; (ii) implement new or revised disclosures, policies and procedures for originating and servicing mortgages, including, but not
limited to, pre-loan counseling, early intervention with delinquent borrowers and specific loss mitigation procedures for loans secured
by a borrower’s principal residence, and mortgage origination disclosures, which integrate existing requirements under TILA and
RESPA; (iii) comply with additional restrictions on mortgage loan originator hiring and compensation; and (iv) comply with new disclosure
requirements and standards for appraisals and certain financial products. The CFPB may issue regulations that impact products and services
offered by the Bank. The CFPB has engaged in rulemakings that affect, among other things, credit card late fees, overdraft fees, data
collection and reporting requirements for small business lenders such as the Bank, and personal financial data rights.

Bank regulators take
into account compliance with consumer protection laws when considering approval of any proposed expansionary proposal, including merger
proposals.

24

Anti-Money
Laundering and the USA Patriot Act

Financial institutions
must maintain anti-money laundering programs that include established internal policies, procedures, and controls; a designated compliance
officer; an ongoing employee training program; and testing of the program by an independent audit function. The program must comply with
the anti-money laundering provisions of the Bank Secrecy Act, or the “BSA.” Bancorp 34 and the Bank are also prohibited from
entering into specified financial transactions and account relationships and must meet enhanced standards for due diligence and “knowing
your customer” in their dealings with foreign financial institutions, foreign customers, and other high risk customers. Financial
institutions must take reasonable steps to conduct enhanced scrutiny of account relationships to guard against money laundering and to
report any suspicious transactions, and certain laws provide law enforcement authorities with increased access to financial information
maintained by banks. Financial institutions must comply with requirements regarding risk-based procedures for conducing ongoing customer
due diligence, which requires the institutions to take appropriate steps to understand the nature and purpose of customer relationships
and identify