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
- FinCEN & Agencies Issue Guidance to Combat Elder Financial Exploitation
The U.S. Department of the Treasury’s FinCEN, along with federal and state financial regulators, has issued a statement offering risk management guidance to help combat elder financial exploitation, which has resulted in approximately $27 billion in suspicious activity reports over the past year. [12/5/24]
- CFPB Survey: Debt Relief Helps Borrowers, But Many Struggle with Repayment Options
The CFPB's first Student Loan Borrower Survey reveals that while 61% of borrowers who received debt relief reported positive life changes, many borrowers remain unaware of alternative repayment options, with nearly 42% only using the standard repayment plan and struggling to navigate more affordable options. [11/14/24]
- CFPB Fines Navy Federal $15M for Illegal Overdraft Fees
The CFPB has ordered Navy Federal Credit Union to refund over $80 million for charging illegal overdraft fees from 2017 to 2022, including fees on transactions with sufficient funds and delayed peer-to-peer payments, and imposed a $15 million civil penalty, marking the largest penalty ever levied by the CFPB against a credit union. [11/7/24]
- Nacha Launches New IAT Communication Feature in Risk Management Portal
Nacha has introduced a new feature in its Risk Management Portal allowing financial institutions to communicate directly about International ACH Transactions (IATs) through the IAT Exception – Request for Information form, enabling them to request essential details for compliance and risk assessment while ensuring secure exchanges of information between the receiving and originating depository financial institutions (RDFIs and ODFIs). [10/31/24]
- Acting Comptroller Discusses Systemic Risk Identification and Management
Acting Comptroller of the Currency Michael J. Hsu emphasized the importance of systematic frameworks for identifying and addressing systemic risk, while advocating for a balance between decisive action and an understanding of the evolving market landscape during a discussion with the CFA Institute Systemic Risk Council. [10/31/24]
- Strengthening Cybersecurity Governance for Credit Unions
The NCUA urges credit union boards to prioritize cybersecurity governance and risk management, emphasizing the need for ongoing training, comprehensive security programs, effective oversight of third-party vendors, incident response planning, and member education to combat increasing cyber threats. [10/24/24]
- Regulatory Agencies Release Guidance on Supervisory Practices for Financial Institutions Affected by Hurricane Milton
Regulatory agencies, including the FDIC and Federal Reserve, are offering assistance to financial institutions impacted by Hurricane Milton, encouraging them to support affected borrowers, expedite temporary facility operations, and adjust compliance and reporting requirements to address the disaster's challenges. [10/17/24]
- Nacha Proposes Enhancements to Same Day ACH and Accelerated Funds Availability
Nacha is proposing enhancements to Same Day ACH, including a fourth daily submission window to better accommodate users in the Pacific time zone and a change to accelerate funds availability for certain next-day ACH credits, while also seeking industry feedback on potential future rule amendments. [10/10/24]
- Multiple Agencies Impose Historic $3 Billion Fine on TD Bank
In a record breaking fine; FinCEN has imposed a record $1.3 billion penalty, along with the DOJ imposing a $1.8 billion penalty, OCC imposing a $450 million penalty, and the Federal Reserve imposing a $123.5 million penalty. These penalties are on TD Bank for severe violations of the Bank Secrecy Act, highlighting the bank's chronic failures in its anti-money laundering program that facilitated illicit activities like drug trafficking and human trafficking. [10/10/24]
- America’s Credit Unions Compliance Blog
America's Credit Unions Compliance Blog discusses cybersecurity, Regulation B compliance, and more. [9/27/24]
- CFPB Fines TD Bank $28 Million for Damaging Consumer Credit Reports
The CFPB has fined TD Bank $27.76 million for persistently providing inaccurate and fraudulent information to consumer reporting agencies, including erroneous credit card delinquencies and fraudulent account details, and for failing to properly address consumer disputes. [9/12/24]
- Credit Union Assets and Loans Up, Delinquencies Rise, Net Income Falls
As of the second quarter of 2024, federally insured credit unions saw a 3.5% increase in total assets to $2.3 trillion, a rise in delinquency rates, and a 10.1% decrease in net income, while loan performance and financial stability remain mixed amid ongoing economic challenges. [9/12/24]
Banking Industry
- Regulatory Agencies Seek Public Input on Reducing Bank Regulations
Federal bank regulatory agencies have issued a third notice requesting public comments on outdated or unnecessary regulations under the Economic Growth and Regulatory Paperwork Reduction Act, focusing on rules in three categories: Rules of Procedure, Safety and Soundness, and Securities. [12/5/24]
- FinCEN & Agencies Issue Guidance to Combat Elder Financial Exploitation
The U.S. Department of the Treasury’s FinCEN, along with federal and state financial regulators, has issued a statement offering risk management guidance to help combat elder financial exploitation, which has resulted in approximately $27 billion in suspicious activity reports over the past year. [12/5/24]
- CFPB Survey: Debt Relief Helps Borrowers, But Many Struggle with Repayment Options
The CFPB's first Student Loan Borrower Survey reveals that while 61% of borrowers who received debt relief reported positive life changes, many borrowers remain unaware of alternative repayment options, with nearly 42% only using the standard repayment plan and struggling to navigate more affordable options. [11/14/24]
- FDIC Survey: U.S. Unbanked Rate Hits Record Low, But Disparities Persist
In 2023, the FDIC survey found that 96% of U.S. households were banked, but significant disparities persist, with 4.2% of households (5.6 million) remaining unbanked, especially among lower-income, minority, and disabled groups, while mobile banking and nonbank online payment services like PayPal and Venmo saw increased use. [11/14/24]
- FDIC Launches Tool to Support Minority Banking Opportunities
The FDIC is launching a new online tool, the Minority Banking Opportunity Explorer, to help financial institutions and investors identify neighborhoods that could benefit from banking services, supporting the creation and expansion of Minority Depository Institutions (MDIs). [11/7/24]
- Nacha Launches New IAT Communication Feature in Risk Management Portal
Nacha has introduced a new feature in its Risk Management Portal allowing financial institutions to communicate directly about International ACH Transactions (IATs) through the IAT Exception – Request for Information form, enabling them to request essential details for compliance and risk assessment while ensuring secure exchanges of information between the receiving and originating depository financial institutions (RDFIs and ODFIs). [10/31/24]
- Acting Comptroller Discusses Systemic Risk Identification and Management
Acting Comptroller of the Currency Michael J. Hsu emphasized the importance of systematic frameworks for identifying and addressing systemic risk, while advocating for a balance between decisive action and an understanding of the evolving market landscape during a discussion with the CFA Institute Systemic Risk Council. [10/31/24]
- OCC Finalizes Recovery Planning Guidelines for Large Banks
The OCC finalized revisions to its recovery planning guidelines for large banks, expanding them to institutions with at least $100 billion in assets and incorporating testing standards and non-financial risk considerations, effective January 1, 2025. [10/24/24]
- Regulatory Agencies Release Guidance on Supervisory Practices for Financial Institutions Affected by Hurricane Milton
Regulatory agencies, including the FDIC and Federal Reserve, are offering assistance to financial institutions impacted by Hurricane Milton, encouraging them to support affected borrowers, expedite temporary facility operations, and adjust compliance and reporting requirements to address the disaster's challenges. [10/17/24]
- Nacha Proposes Enhancements to Same Day ACH and Accelerated Funds Availability
Nacha is proposing enhancements to Same Day ACH, including a fourth daily submission window to better accommodate users in the Pacific time zone and a change to accelerate funds availability for certain next-day ACH credits, while also seeking industry feedback on potential future rule amendments. [10/10/24]
- Multiple Agencies Impose Historic $3 Billion Fine on TD Bank
In a record breaking fine; FinCEN has imposed a record $1.3 billion penalty, along with the DOJ imposing a $1.8 billion penalty, OCC imposing a $450 million penalty, and the Federal Reserve imposing a $123.5 million penalty. These penalties are on TD Bank for severe violations of the Bank Secrecy Act, highlighting the bank's chronic failures in its anti-money laundering program that facilitated illicit activities like drug trafficking and human trafficking. [10/10/24]
- FDIC Issues 2024 Small Business Lending Survey Report
The FDIC's 2024 Small Business Lending Survey reveals that while U.S. banks increasingly adopt financial technology, they still prioritize traditional relationship-based lending practices, emphasizing in-person interactions and community engagement, particularly for small business loans, despite growing competition from credit unions and FinTechs. [10/4/24]
Agencies
- OFAC Settles $14.55M with Aiotec for Iran Sanctions Violation
The U.S. Department of the Treasury's OFAC announced a $14,550,000 settlement with Aiotec GmbH for violating Iranian sanctions by participating in a conspiracy to indirectly sell and supply an Australian polypropylene plant to Iran and process payments through U.S. financial institutions. [12/5/24]
- OCC Releases Updated UDAP/UDAAP Handbook
The OCC has released version 1.1 of its "Unfair or Deceptive Acts or Practices and Unfair, Deceptive, or Abusive Acts or Practices" booklet, providing updated guidance for bank examiners on compliance with UDAP and UDAAP regulations, replacing the 2020 version. [12/5/24]
- CFPB Study Reveals Racial Disparities in Small Business Lending
The CFPB's study reveals significant racial disparities in small business lending, showing that Black entrepreneurs were less encouraged to apply for loans and more often steered toward alternative products like credit cards and home equity loans compared to white borrowers with similar financial profiles. [11/14/24]
- FinCEN Issues Alert on Deepfake Fraud Schemes Using GenAI
FinCEN issued an alert to help financial institutions detect fraud schemes involving deepfake media created with generative AI, highlighting red flags and reporting requirements to combat identity fraud and cybercrime. [11/14/24]
- FinCEN Seeks Public Comment on New Real Estate Reporting Rule
The U.S. Treasury's FinCEN issued a 60-day notice for public comments on the reporting form real estate professionals will use under the new Residential Real Estate Rule, aimed at combating illicit finance in high-risk, non-financed residential property transfers starting December 1, 2025. [11/14/24]
- FinCEN Extends Deadline for Hurricane Victims to Submit Ownership Reports
FinCEN has extended the deadline by six months for certain victims of hurricanes Milton, Helene, Debby, Beryl, and Francine to submit or update beneficial ownership information reports. [11/7/24]
- FinCEN Updates U.S. Financial Institutions on FATF Jurisdiction Lists
FinCEN informs U.S. financial institutions of the FATF's updated lists of jurisdictions with strategic anti-money laundering and counterterrorism financing deficiencies, highlighting new additions, removals, and ongoing risks for compliance with U.S. due diligence and sanctions obligations. [11/7/24]
- CFPB Orders VyStar Credit Union to Compensate Consumers After Online Banking Failure
The CFPB has taken action against VyStar Credit Union for consumer harm caused by a poorly executed rollout of a new online banking system in May 2022, which left members unable to access their accounts and incurred fees, resulting in a $1.5 million penalty and an order for VyStar to refund affected consumers and improve its banking system processes. [10/31/24]
- FinCEN and FINTRAC Host Anti-Money Laundering Symposium in Ottawa
On October 24-25, FinCEN and FINTRAC co-hosted an Anti-Money Laundering/Anti-Terrorist Financing Symposium in Ottawa, uniting financial intelligence units and law enforcement from several countries to address critical issues like terrorist financing and sanctions evasion, while emphasizing collaborative efforts such as joint sanctions against entities like the Samidoun network and the establishment of public-private partnerships to combat various forms of illicit financing. [10/31/24]
- FinCEN Alerts U.S. Banks on FATF Updates and High-Risk Jurisdictions
FinCEN has notified U.S. financial institutions about recent updates from the FATF regarding jurisdictions with strategic deficiencies in anti-money laundering and counter-terrorism financing measures, including the addition of Algeria, Angola, Côte d'Ivoire, and Lebanon to the Increased Monitoring list, while reinforcing the need for enhanced due diligence in dealings with high-risk jurisdictions like Iran and North Korea. [10/31/24]
- CFPB Enhances Consumer Rights Over Financial Data
The CFPB finalized a rule granting consumers enhanced rights over their personal financial data, requiring financial institutions to allow free access and transfer of this data to other providers, thereby promoting competition and enabling better rates and services in the financial market. [10/24/24]
- FinCEN Alerts Financial Institutions on Hizballah’s Suspicious Activities
FinCEN issued an alert to help financial institutions identify and report suspicious activities linked to Lebanese Hizballah, a U.S.-designated Foreign Terrorist Organization, emphasizing the group's global criminal financial networks and its ongoing violence against Israel. [10/24/24]