This section covers in detail some of the U.S. bank regulations, which are considered to be the most sophisticated bank regulations ever developed in the world. These regulations are included in this book to underline two important facts:

1. These regulations are intended to make sure that every citizen in America is treated fairly without any sort of discrimination, and that the money deposited in the depository institutions is protected and safe. This is important because those who are involved in RF banking and its development need not reinvent the wheel; the existing regulations are built on a huge body of human experience, and it is hoped that RF banks' development efforts can begin by using such regulations as a base for further growth.

2. Many of these regulations have Judeo-Christian-Islamic roots.

In addition to the banking regulations, this section attempts to familiarize the reader with the process of regulating and supervising banks.

Consumer Compliance Management

Every bank in America is required to manage the entire consumer compliance process using an overall compliance management system. The system includes a compliance program and a compliance audit function, sometimes referred to as compliance review or self-assessment. The compliance program consists of the policies and procedures that guide employees' adherence to banking laws and regulations. After the 2008 financial meltdown, Congress reformed existing regulations and instituted many new banking and finance company regulations through a new act called the Dodd-Frank Act. The act was passed in 2010 and is named after the two representatives who took the lead to issue it. One of the new institutions created to cater to compliance and consumer protection is the Consumer Financial Protection Bureau (CFPB), which is charged with protecting consumers while benefiting from diverse financial services in America.

The consumer compliance audit function is an independent testing of the bank's transactions to determine its level of compliance with consumer protection laws and regulations, as well as the effectiveness of, and its adherence to, its own policies and procedures.

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