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
- 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]
- CFPB Report
The CFPB's new report reveals that large retailers are now charging fees for cash-back transactions with debit or prepaid cards, costing Americans tens of millions annually, particularly impacting those in underserved communities with limited banking access. [8/29/24]
- CFPB Fines NewDay USA $2.25 Million for Deceiving Veterans in Refinancing Scheme
The CFPB has fined NewDay USA $2.25 million for misleading active-duty servicemembers and veterans with deceptive cost comparisons on cash-out refinance loans, requiring the company to stop misrepresenting loan costs and pay the penalty to the victims relief fund. [8/29/24]
- OFAC Amends Frequently Asked Questions
The U.S. Treasury's OFAC is updating several FAQs to improve public guidance on sanctions implementation and will continue this review process to provide current and helpful information. [8/22/24]
- NCUA Board Approves Proposed Rule
The NCUA Board approved an interagency notice of proposed rulemaking which would establish data standards for certain information collections submitted to the NCUA and other financial regulatory agencies. [8/15/24]
- America’s Credit Unions’ Compliance Blog
America's Credit Unions' has published a new compliance blog examining CFI definition, whistleblowers, and ad requirements. [8/8/24]
- OFAC Compliance Hotline Announcement
The U.S. Department of the Treasury’s OFAC is updating its Compliance Hotline by transitioning to a single online platform for submitting sanctions queries, retiring email and phone options by the end of 2024, and aiming for full implementation by January 1, 2025. [8/8/24]
Banking Industry
- 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]
- FinCEN Withdraws ABLV Bank Findings
The U.S. Treasury's FinCEN has withdrawn its designation of ABLV Bank as a financial institution of primary money laundering concern due to significant improvements in the bank's situation and Latvia's strengthened anti-money laundering measures since the initial proposal in 2018. [9/27/24]
- FDIC Proposes Recordkeeping Rule for Third-Party Deposit Insurance
The FDIC Board approved a proposed rule to enhance recordkeeping for bank deposits made by third-party non-bank companies, aiming to protect depositors, ensure banks can identify individual account owners, and improve compliance with anti-money laundering laws. [9/19/24]
- FDIC Approves Final Statement of Policy on Bank Merger Transactions
The FDIC Board approved a final Statement of Policy on Bank Merger Transactions that updates and clarifies its evaluation process, including competitive effects, financial risk, community needs, and scrutiny for larger institutions, reflecting significant changes in the banking industry since 2008. [9/19/24]
- 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]
- CFPB Report
The CFPB's new report reveals that large retailers are now charging fees for cash-back transactions with debit or prepaid cards, costing Americans tens of millions annually, particularly impacting those in underserved communities with limited banking access. [8/29/24]
- CFPB Fines NewDay USA $2.25 Million for Deceiving Veterans in Refinancing Scheme
The CFPB has fined NewDay USA $2.25 million for misleading active-duty servicemembers and veterans with deceptive cost comparisons on cash-out refinance loans, requiring the company to stop misrepresenting loan costs and pay the penalty to the victims relief fund. [8/29/24]
- OFAC Amends Frequently Asked Questions
The U.S. Treasury's OFAC is updating several FAQs to improve public guidance on sanctions implementation and will continue this review process to provide current and helpful information. [8/22/24]
Agencies
- FinCEN Renews Real Estate Geographic Targeting Orders
FinCEN has renewed its Geographic Targeting Orders requiring U.S. title insurance companies to identify individuals behind shell companies involved in non-financed residential real estate purchases, effective from October 16, 2024, to April 14, 2025, to aid in tracking illicit activities, with a new nationwide reporting rule set to replace these orders by December 1, 2025. [10/17/24]
- CFPB Sues Climb Credit and Investment Firm 1/0
The CFPB has sued Climb Credit and its largest shareholder, 1/0, for misleading students about loan quality, training program outcomes, and costs, seeking to halt these practices, compensate affected borrowers, and impose penalties. [10/17/24]
- OCC Seeks AI Research in Banking and Finance
The Office of the Comptroller of the Currency (OCC) is inviting submissions of original academic research papers on artificial intelligence in banking and finance by December 15, 2024, with selected authors presenting at OCC Headquarters on June 6, 2025. [10/10/24]
- FinCEN Reveals Law Enforcement Award Winners at Tenth Annual Ceremony
During a ceremony at the U.S. Department of the Treasury, FinCEN honored law enforcement agencies for their successful use of Bank Secrecy Act data in criminal prosecutions, highlighting cases that led to 178 convictions, $2.5 billion seized, and the highest restitution amounts in the program's history. [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]
- Agencies Set Thresholds for Truth in Lending and Consumer Leasing Rules
The Consumer Financial Protection Bureau and Federal Reserve Board announced that, due to a 3.4% increase in the Consumer Price Index, Regulation Z and Regulation M will apply to consumer credit transactions and leases of $71,900 or less in 2025, while certain loans, like private education loans and mortgages, remain subject to Regulation Z regardless of amount. [10/4/24]
- Agencies Set Exemption Thresholds for Smaller Higher-Priced Mortgage Loans
The Consumer Financial Protection Bureau, Federal Reserve Board, and Office of the Comptroller of the Currency announced that the 2025 threshold for higher-priced mortgage loans subject to special appraisal requirements will increase to $33,500, effective January 1, 2025, reflecting a 3.4% rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers. [10/4/24]
- Interagency Statement on Supervisory Practices Regarding Financial Institutions Affected by Hurricane Helene
The federal regulatory agencies, recognizing the severe impact of Hurricane Helene on financial institutions and their customers, will provide assistance, encourage constructive lending practices, facilitate the operation of temporary facilities, and consider regulatory flexibility for affected institutions, while emphasizing the importance of meeting community needs during recovery. [10/4/24]
- CFPB Report: Top Financial Concerns for Servicemembers and Veterans
The CFPB's annual report highlights significant financial challenges faced by servicemembers, veterans, and military families, including difficulties with student loan servicers, transcript withholding by colleges, and an increase in scams targeting older veterans, revealing a sharp rise in consumer complaints from this community. [9/27/24]
- Treasury Targets Russian Cybercrime and Illicit Currency Exchanges
The U.S. Treasury Department has announced coordinated actions to combat Russian cybercrime by designating the virtual currency exchanger PM2BTC and its operator Sergey Sergeevich Ivanov as key money laundering concerns, while sanctioning Ivanov and the Cryptex exchange for facilitating illicit financial activities linked to cybercriminals. [9/27/24]
- FHFA Launches Dashboard for Multifamily Mortgage Data
The FHFA has launched an interactive dashboard for tracking multifamily mortgage data, allowing users to access detailed information on loans and properties at both state and national levels, enhancing transparency and understanding of the multifamily housing market. [9/19/24]
- CFPB Circular on Overdraft Fees
The CFPB has issued guidance to help enforcers prevent banks from charging overdraft fees without proof of consumer consent, highlighting issues with "phantom opt-in" agreements and aiming to protect consumers from unexpected fees related to ATM and debit card transactions. [9/19/24]