The Impact of Compliance and Security Changes in Mercury

May 2017

Karla Alexander-White, CRCM Compliance Manager

Christina Schneider, Compliance Manager

Agenda

2

• Compliance Overview

• Known Regulatory Items

– Deposits

– Lending

• Potential Regulatory Items

– Deposits

– Lending

• Watch List Items

– Deposits

– Lending

• Questions

3

Product and Services Federal Regulatory Compliance

Corporate Compliance Overview:

Mission and Principles

4

Compliance Mission Statement

The Corporate Compliance mission is to

ensure that FIS, its Board members,

associates, contractors, vendors, and

clients can maintain compliance with the

letter and spirit of all applicable laws and

conducts business with the highest level

of honesty and integrity.

FIS Guiding Principles

At all levels of our organization, we are

champions of our client’s mission and are

guided by the following principles:

• Building Trust in all we do

• Inspiring a passion to act

• Fostering an entrepreneurial spirit

• Empowering employee growth

• Encouraging giving back

Compliance Overview

5

• Fulfilling our mission requires that we foster a culture of high ethical and moral standards by

establishing effective governance and oversight, policies and procedures, risk assessment,

testing, training and reporting.

• We accomplish this through a staff of over 50 full-time Compliance associates located across

the globe.

• The Chief Compliance and Customer Advocacy Officer leads nine distinct functional areas with a

leadership team that averages over 15 years of compliance experience.

Certifications/Degrees on the Compliance team include:• Certified Anti-Money Laundering Specialist (ACAMS)

• Certified Information Privacy Manager (CIPM)

• Certified Regulatory Compliance Manager (CRCM)

• Certified Information Privacy Professional (CIPP)

• Master of Business Administration (MBA)

• Juris Doctorate (JD)

Compliance Organization – By Functional Area

6

Risk

Committee

Audit

Committee

Chief Risk

Office

Chief

Compliance

Office

Enterprise

Product

Compliance

International,

Institutional &

Wholesale

Enterprise

Program

Consumer

Export &

Sanctions

Compliance

Model Risk

Management

BSA/AML

Anti-Bribery,

Corruption, Fraud

Privacy Office

Corporate Compliance Program

Governed by the

Executive Risk

Management Committee

and Board of Directors

The Corporate Compliance Playbook

serves as the program’s foundation

Reinforced by key

program pillars

Po

licy &

Pro

ce

dure

s

Ris

k A

sse

ssm

en

ts

Re

gu

latio

n M

an

ag

em

en

t

Mo

nito

rin

g

Te

stin

g

Tra

inin

g

Rep

ort

ing

Compliance Governance

& Oversight

Compliance Program Framework

7

Experience | | Expertise

8

Known Regulatory Items

Known Regulatory Items - Deposits

9

• NACHA Same Day ACH Phase 2 and 3

• Prepaid Final Rule

• Annual IRS Reporting Updates (December 2017)

• Call Report Revisions (March 2017)

• FinCEN CDD Final Rule

• NAICS

• FDIC Proposed Recordkeeping for Timely Deposit Insurance Determination

Known Regulatory Items - Lending

10

• Annual Credit Bureau Updates (September 2017)

• Credit Bureau Revisions under the NY AG Agreement

• Call Report Revisions (March 2017)

• FASB CECL (Early adopters 2018, remaining 2019/2020)

• CFPB Mortgage Servicing Amendments (Final)

• HMDA Revisions (Implementation begins 2017)

• FHLMC Investor Reporting Changes

• Military Lending (Phase 2)

11

Potential Regulatory Items

Potential Regulatory Items - Deposits

12

• NACHA RFC on IAT and Documentation

• Reg CC Final Rule

• GLBA Amendments to Reg P

• FinCEN Technical CTR Amendments

• ADA Final Rule

• IRS Proposed Rules For Reporting NRA Interest On Accountholders in Treaty Countries

Potential Regulatory Items - Lending

13

• TRID Proposal

• Payday, Vehicle Title, and Installment Proposal

• Debt Collections and Credit Bureau Reporting

• Private Flood Insurance Rule

14

Watch List Items

Watch List Items

15

• Business Lending Data for CFPB (ECOA/Reg B)

• Expanded HSAs with the Healthcare Rule

• Gramm Leach-Bliley Act (GLBA) Amendments

• Government Sponsored Enterprise (GSE) Reform

• Agency Regulatory Review

• Overdrafts

• CFPB Oversight of Nonbank Auto Finance Companies

Thank YouKarla Alexander-White, CRCM Compliance Manager

Christina Schneider, Compliance Manager