BB&T 2007 Annual Report Download - page 31

“Needs to Improve” or “Substantial Noncompliance.” This assessment is reviewed for any bank that applies to
merge or consolidate with or acquire the assets or assume the liabilities of an insured depository institution, or to
open or relocate a branch office. The CRA record of each subsidiary bank of a financial holding company, such as
BB&T, also is assessed by the Federal Reserve Board in connection with any acquisition or merger application.
USA Patriot Act
The USA Patriot Act of 2001 (the “Patriot Act”) contains anti-money laundering measures affecting insured
depository institutions, broker-dealers and certain other financial institutions. The Patriot Act includes the
International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001 (the “IMLAFA”). The
IMLAFA requires such financial institutions to implement policies and procedures to combat money laundering
and the financing of terrorism and grants the Secretary of the Treasury broad authority to establish regulations
and to impose requirements and restrictions on financial institutions’ operations. In addition, the Patriot Act
requires the federal bank regulatory agencies to consider the effectiveness of a financial institution’s anti-money
laundering activities when reviewing bank mergers and bank holding company acquisitions. The U.S. Treasury
Department has issued a number of regulations implementing the Patriot Act, which impose obligations on
financial institutions to maintain appropriate policies, procedures and controls to detect, prevent and report
money laundering and terrorist financing. The obligations of financial institutions under the Patriot Act have
increased, and may continue to increase, BB&T’s costs and may subject BB&T to liability. As noted above,
enforcement and compliance-related activities by government agencies has increased. Compliance with the
Patriot Act, and in particular the IMLAFA, are among the areas receiving focus from bank regulators conducting
examinations and this can be expected to continue.
Sarbanes-Oxley Act of 2002
The Sarbanes-Oxley Act of 2002 comprehensively revised the laws affecting corporate governance,
accounting obligations and corporate reporting for companies, such as BB&T, with equity or debt securities
registered under the Securities Exchange Act of 1934, as amended. In particular, the Sarbanes-Oxley Act
established: (i) new requirements for audit committees, including independence, expertise, and responsibilities;
(ii) certification responsibilities for the Chief Executive Officer and Chief Financial Officer with respect to the
Company’s financial statements; (iii) new standards for auditors and regulation of audits; (iv) increased disclosure
and reporting obligations for reporting companies and their directors and executive officers; and (v) new and
increased civil and criminal penalties for violation of the federal securities laws.
Other Regulatory Matters
BB&T and its subsidiaries and affiliates are subject to numerous examinations by federal and state banking
regulators, as well as the SEC, the FINRA, the NYSE and various state insurance and securities regulators.
BB&T and its subsidiaries have from time to time received requests for information from regulatory authorities
in various states, including state insurance commissions and state attorneys general, securities regulators and
other regulatory authorities, concerning their business practices. Such requests are considered incidental to the
normal conduct of business.
Corporate Governance
Information with respect to BB&T’s corporate governance policies and principles is presented on BB&T’s
web site, www.BBT.com, and includes:
ŠBB&T’s Corporate Governance Guidelines
ŠBB&T’s Corporate Board of Directors
ŠCommittees of the Corporate Board of Directors and Committee Charters
ŠBB&T’s Codes of Ethics for Directors, Senior Financial Officers and Employees
ŠChief Executive Officer and Chief Financial Officer Certifications
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