In today’s competitive environment, financial institutions must develop deposit products for consumers of varying interests and ages. While minor accounts can be complex, remember you may be helping the next generation of loyal accountholders. This session will cover three critical areas for opening minor accounts:
1.Who owns the funds?
2.How should account opening documents be executed?
3.How should access to the funds be controlled during the life of the account?
Many states have established laws for defining the legal ownership of accounts for minors, such as UTMA or UGMA (Uniform Transfers to Minors Act or Uniform Gifts to Minors Act). Although state statutes will not be covered, this session will address key challenges and offer practical solutions for opening minor accounts.
- Deposit account options for minors, including savings, UTMA, and joint accounts
- What questions should be asked at account opening?
- Required documentation, signature cards, and account changes
- Who is authorized to make changes and withdraw funds?
- What if the minor or UTMA custodian dies?
- Should online access be allowed?
- BSA CIP rules
- Red flags for potential fraud on minor accounts
- TAKE-AWAY TOOLKIT
- Account opening worksheet for savings, UTMA, and joint accounts with minors
- CIP workflow for minor accounts – documenting the “customer” under the rules
- Trouble spots for minor accounts
- Potential SAR filing reasons
- Account closing checklist
- Employee training log
- Quiz you can administer to measure staff learning and a separate answer key
WHO SHOULD ATTEND?
This informative session is designed for new account representatives, call service staff, branch managers, assistant branch managers, branch administration, deposit operations, BSA CIP staff, and anyone who works with or manages new accounts.
SPEAKER: Susan Costonis, Compliance Consulting and Training for Financial Institutions
Susan Costonis is a compliance consultant and trainer. She specializes in compliance management along with deposit and lending regulatory training. Most of her 35-year career was spent as a banker in several areas including lending, loan administration, electronic banking, and compliance risk management.
Susan has successfully managed compliance programs and exams for institutions that ranged from a community bank to large multi-state bank holding companies. She has been a compliance officer for institutions supervised by the OCC, FDIC, and Federal Reserve. Susan has been a Certified Regulatory Compliance Manager since 1998, completed the ABA Graduate Compliance School, and graduated from the University of Akron and the Graduate Banking School of the University of Colorado. She regularly presents to financial institution audiences in several states and “translates” complex regulations into simple concepts by using humor and real-life examples.