CFPB Crackdown on Deceptive Advertisements to Servicemembers in Full Swing
The CFPB settles with its fifth, sixth, and seventh companies for deceptive advertisements directed at servicemembers and veterans. Deception included implying an affiliation with the government and misrepresenting fees associated with the loans. [9/4/20]
FinCEN: Unlawfully Disclosed SARs
FinCEN has issued a statement that it is aware that various media outlets intend to publish a series of articles based on unlawfully disclosed Suspicious Activity Reports from several years ago. FinCEN seeks to remind all parties that unauthorized disclosure of SARs is a crime. [9/2/20]
NCUA: We Prefer Carrots Over Sticks (But Reserve Stick Option)
When it comes to promoting compliance, the NCUA prefers to provide more carrots in the form of incentivizing and rewarding corrective action and self-identification of compliance deficiencies. But the agency will use, when necessary, formal actions (a.k.a. sticks) to correct violations. [8/28/20]
PEP Talk
What you need to know about the agencies' recent statement on BSA regarding politically exposed persons. [8/26/20]
Risk Watch Plus Webinar 8: Complaint Management
Complaints: Why you shouldn't shun them, but invite them! In this era of exploding complaint volume, this certificated webinar (see instructions in video for how to get your free certificate of completion) takes a look at the risks, evolution, and need for a management strategy to effectively deal with complaints. Before that, we cover what's hot in compliance, as seen by the editors of Risk InboX.
Credit Unions
- Public Comment Requested Regarding Beneficial Ownership Information Requests
The Department of the Treasury, representing FinCEN, will issue a 30-day notice in the Federal Register for public comment on the collection of beneficial ownership information, following an earlier 60-day notice, to refine the process for authorized entities seeking access under the Corporate Transparency Act. [7/25/24]
- CFPB Proposes Interpretive Rule Regarding Paycheck Advance Products
The CFPB proposed a rule clarifying that many paycheck advance products, often marketed as “earned wage” products, fall under consumer loan regulations governed by the Truth in Lending Act. This rule aims to ensure lenders disclose costs and fees clearly to workers, following a report that found these products carry high APRs and are used frequently, with workers taking an average of 27 loans per year. [7/18/24]
- NCUA Board Approves Incentive-Based Compensation Rule
The NCUA Board approved rules on incentive-based compensation for financial institutions based on asset size tiers, aimed at promoting long-term company health. They also endorsed new rules requiring succession plans for federally insured credit unions to ensure leadership continuity and operational stability. [7/18/24]
- CFPB Extends Compliance Date for Small Business Lending Rule
The CFPB issued an interim final rule today to extend compliance deadlines for the small business lending rule, following the Supreme Court's decision in CFPB v. CFSA. The rule extends deadlines by 290 days, allowing high-volume lenders to start data collection by July 18, 2025, with reporting deadlines set for June 1, 2026, and provides a grace period for reporting errors and compliance assistance during the initial phase of implementation. [6/27/24]
- NCUA Annual Cybersecurity and Credit Union System Resilience Report
The NCUA's annual report on cybersecurity and credit union resilience summarizes current threats, key initiatives, and ongoing efforts to enhance industry preparedness. Chairman Todd M. Harper stresses the importance of vigilance and proposes legislative changes to strengthen oversight and protect critical infrastructure. [6/27/24]
- HMDA: FFIEC 2024 HMDA Reporting Guide Available
The FFIEC has issued a revised 2024 "A Guide to HMDA Reporting: Getting it Right!" to account for the asset-size exemption threshold effective January 1, 2024, for reporting HMDA data on closed-end mortgage loans. [6/20/24]
- NCUA Q1 2024 Credit Union Data Report Available
In the first quarter of 2024, federally insured credit unions saw mixed financial results. Median assets and deposits declined modestly, while loans increased, though at a slower pace than in the previous year. Delinquency rates also rose. Most credit unions reported positive net income, but the median return on assets decreased compared to the previous year. The report also monitors state-level economic indicators such as unemployment rates and home prices. [6/20/24]
- NCUA DEI Summit
Register now for the fifth annual DEI, focusing on diversity, equity, and inclusion. [6/6/24]
- NCUA Issues FAQs on Share Insurance Coverage for Cryptocurrency
The NCUA has added a new financial technology and digital assets section to its website, which includes a FAQ section regarding share insurance coverage and custody for cryptocurrencies and digital assets. [5/30/24]
- False Alerts: Fraudulent Notices on Released Funds Allegedly from the OCC
Consumers are receiving fraudulent correspondence posing as the Office of the Comptroller of the Currency (OCC), involving fictitious inheritance or beneficiary payouts, leading to identity theft and financial loss. Variations of the scam include requests for personal information and fees, with victims urged not to respond and to report incidents to appropriate authorities such as the U.S. Department of the Treasury, FTC, and National Consumers League. [5/30/24]
- America’s Credit Unions Compliance Blog
American's Credit Unions' compliance blog discusses trends in elder financial exploitation, RESPA's anti-kickback provisions, and more. [5/16/24]
- FHA New Requirement
The FHA has announced a new requirement for lenders participating in its Single Family program will enable borrowers to request a re-assessment of the appraised value of their property if they believe that the appraisal was inaccurate or biased. [5/2/24]
Banking Industry
- Public Comment Requested Regarding Beneficial Ownership Information Requests
The Department of the Treasury, representing FinCEN, will issue a 30-day notice in the Federal Register for public comment on the collection of beneficial ownership information, following an earlier 60-day notice, to refine the process for authorized entities seeking access under the Corporate Transparency Act. [7/25/24]
- Public Outreach Meeting Announced
Federal bank regulatory agencies will host a virtual public outreach meeting on September 25, 2024, to gather stakeholder input on regulatory categories under review as required by the Economic Growth and Regulatory Paperwork Reduction Act of 1996, with registration for oral comments closing on August 9, 2024. [7/25/24]
- CFPB Proposes Interpretive Rule Regarding Paycheck Advance Products
The CFPB proposed a rule clarifying that many paycheck advance products, often marketed as “earned wage” products, fall under consumer loan regulations governed by the Truth in Lending Act. This rule aims to ensure lenders disclose costs and fees clearly to workers, following a report that found these products carry high APRs and are used frequently, with workers taking an average of 27 loans per year. [7/18/24]
- List of Areas Eligible for CRA Consideration Available
Federal bank regulatory agencies have released the 2024 list of distressed or underserved nonmetropolitan middle-income geographies eligible for Community Reinvestment Act (CRA) credit. This list identifies areas where banks can engage in revitalization or stabilization activities to meet community credit needs, considering factors like unemployment and poverty, with activities eligible for CRA consideration for 12 months after publication. [7/18/24]
- OCC Amends Enforcement Action Against Citibank
The OCC has amended its 2020 Cease and Desist Order against Citibank, N.A., citing the bank's failure to meet remediation milestones and improve compliance. A $75 million penalty was also imposed due to deficiencies in data governance and regulatory reporting oversight. [7/11/24]
- ABA Regulatory Compliance Guide
ABA's 34th Edition of its Reference Guide to Regulatory Compliance is now available for purchase. [6/27/24]
- OCC Requests Comments on Proposed Recovery Planning Guidelines Revisions
The OCC has proposed updates to recovery planning guidelines for large banks with over $100 billion in assets, emphasizing readiness for severe financial stress and systemic risks, including testing standards for recovery plans and addressing non-financial risks. Public comments are invited within 30 days of publication in the Federal Register. [6/27/24]
- OCC: Key Risks in Banking
The OCC issued a report highlighting key issues, such as credit risk increasing, increased operational risk, and the importance of a compliance risk management framework.[6/20/24]
- HMDA: FFIEC 2024 HMDA Reporting Guide Available
The FFIEC has issued a revised 2024 "A Guide to HMDA Reporting: Getting it Right!" to account for the asset-size exemption threshold effective January 1, 2024, for reporting HMDA data on closed-end mortgage loans. [6/20/24]
- FDIC: Resolution Planning Rule Approved
The FDIC has finalized a rule to improve resolution planning for insured depository institutions with assets over $50 billion. Banks with assets of at least $100 billion must submit detailed plans to aid in potential failures. Smaller institutions between $50 billion and $100 billion will file simpler "informational filings." The rule mandates periodic full submissions, enhances engagement between FDIC and banks, and introduces testing of critical capabilities. It takes effect on October 1, 2024, with initial submissions due next year. [6/20/24]
- Revised Retail Nondeposit Investment Product Booklet
The OCC has released version 2.0 of the "Retail Nondeposit Investment Products" booklet, which provides guidance on managing risks associated with selling these products to retail customers. It replaces the previous version from January 2015 and includes updates to reflect regulatory changes, offer clarity on risk management practices, and apply to community banks. [6/13/24]
- Updated Host State Loan-to-Deposit Ratios Available
Regulatory agencies updated loan-to-deposit ratios to assess compliance with interstate banking laws, aiming to ensure banks support local credit needs. [6/6/24]
Agencies
- CFPB Issues Circular on Whistleblowing
The CFPB issued a circular warning that broad nondisclosure agreements may unlawfully deter employees from whistleblowing by intimidating them from reporting misconduct to law enforcement. The circular emphasizes that such agreements, if not explicitly allowing communication with government agencies, could violate federal whistleblower protections and obstruct investigations. [7/25/24]
- AML/CFT Program Notices of Proposed Rulemaking
FinCEN, along with major federal banking agencies, issued a joint statement on proposed rulemakings to strengthen and modernize anti-money laundering and counter-terrorism financing programs, reflecting changes mandated by the Anti-Money Laundering Act of 2020 and aiming to enhance the effectiveness of the AML/CFT regulatory regime. [7/25/24]
- FinCEN Issues Joint Notice with FBI and OFAC
FinCEN issued a Notice detailing timeshare fraud tactics by Mexico-based criminal organizations like CJNG, targeting U.S. timeshare owners through telemarketing and advance fee schemes. The notice, jointly issued with OFAC and the FBI, warns financial institutions and accompanies OFAC sanctions against Mexican entities involved in facilitating these frauds. [7/18/24]
- Agencies Issue Final Rule Regarding Automated Valuation Models
Six federal regulatory agencies finalized a rule under Dodd-Frank to enforce quality controls on automated valuation models (AVMs) used for mortgages on consumers' primary residences, aiming to ensure accuracy and compliance with nondiscrimination laws. The rule will take effect one year after publication in the Federal Register. [7/18/24]
- 2023 Data on Mortgage Lending Available
Today, the FFIEC published 2023 mortgage lending data under the Home Mortgage Disclosure Act from 5,113 U.S. financial institutions, offering comprehensive insights into mortgage market activity. These data are crucial for assessing fair lending risks, guiding regulatory examinations, and evaluating how financial institutions serve their communities' housing needs. [7/11/24]
- FinCEN Issues Supplemental Alert
FinCEN issued a supplemental alert on financing Israeli extremist settler violence in the West Bank, adding new red flags for U.S. financial institutions to detect and report suspicious activity. [7/11/24]
- CFPB Proposes New Rules to Help Homeowners
The CFPB has proposed new rules aimed at simplifying the process for struggling homeowners to receive mortgage assistance. These rules would require mortgage servicers to prioritize helping borrowers over foreclosing, streamline paperwork requirements, enhance communication with borrowers, and ensure information is accessible in languages borrowers understand. CFPB Director Rohit Chopra emphasized that these changes are designed to reduce foreclosures, bolster market resilience, and benefit borrowers, servicers, and the broader economy. [7/11/24]
- FinCEN Implements Financial Action Against Iraq’s Al-Huda Bank
The U.S. Treasury's FinCEN issued a final rule severing Al-Huda Bank from the U.S. financial system under the USA PATRIOT Act, citing its role in facilitating terrorist financing for designated entities. This measure aims to prevent Al-Huda Bank from accessing U.S. correspondent accounts and disrupting its illicit financial activities. [6/27/24]
- FinCEN Issues Reminder Regarding Elder Financial Exploitation
FinCEN emphasizes vigilance against elder financial exploitation (EFE) on World Elder Abuse Awareness Day, highlighting $27 billion in suspicious activity linked to EFE and urging financial institutions to report and support victims through resources like the National Elder Fraud Hotline. [6/20/24]
- FinCEN Issues Supplemental Advisory
Secretary of the Treasury Janet L. Yellen announced that FinCEN issued an advisory alerting U.S. financial institutions to new trends in the illicit fentanyl supply chain, emphasizing vigilance in identifying and reporting suspicious activity linked to Mexico-based criminal organizations obtaining fentanyl precursors from Chinese suppliers, complementing the 2019 advisory with updated typologies and red flags, as mandated by the FEND Off Fentanyl Act. [6/20/24]
- Medical Bills on Credit Reports May Be No More
The CFPB has proposed a rule to remove medical bills from most credit reports, aiming to increase privacy protections, raise credit scores, and prevent debt collectors from coercing payments based on medical information. This rule would eliminate the special medical debt exception, establish guardrails for credit reporting companies, and ban repossession of medical devices as collateral for loans, aiming to address the burden of medical debt and coercive credit reporting practices. [6/13/24]
- FinCEN Fiscal Year in Review: 2023
FinCEN's Year in Review for FY 2023 details the collection and utilization of Bank Secrecy Act data, supporting law enforcement and national security efforts. It includes stats on BSA reporting and its use by law enforcement, demonstrating how FinCEN analyzes this data for alerts, trends, and regulatory actions, in line with the Anti-Money Laundering Act of 2020. [6/13/24]