FinCEN Alert on COVID-19 Employee Retention Credit Fraud
November 23, 2023 / Source: FinCEN
WASHINGTON—Today, the Financial Crimes Enforcement Network (FinCEN), in close coordination with the Internal Revenue Service Criminal Investigation (CI), issued an alert to financial institutions on fraud schemes related to the COVID-19 Employee Retention Credit (ERC). The alert provides an overview of typologies associated with ERC fraud and scams, highlights select red flags to assist financial institutions in…
Agencies Extend Comment Period on Proposed Rule to Require Large Banks to Maintain Long-term Debt
November 23, 2023 / Source: OCC
Federal bank regulatory agencies announced today that they will extend until January 16, 2024, the comment period on their long-term debt proposed rule to improve the resolvability of large banks and enhance financial stability. The agencies extended the comment period to allow interested parties more time to analyze the issues and prepare their comments. Comments on the…
Piloting Disclosures for Construction Loans
November 21, 2023 / Source: CFPB
Today, the CFPB announced that it has approved an application that marks the first step for piloting disclosures for construction loans. Under this program, the CFPB authorizes parameters for in-market testing of alternatives to required disclosures. Real-world disclosure testing is often more accurate than lab testing, and this effort can help the CFPB by informing the need…
FDIC Board of Directors Establishes Special Committee to Oversee Independent Review of Agency Culture
November 21, 2023 / Source: FDIC
WASHINGTON — The Federal Deposit Insurance Corporation (FDIC) Board of Directors today announced the establishment of a special committee of the Board to oversee an independent third–party review of the agency’s workplace culture. The Board appointed Directors Jonathan McKernan and Michael J. Hsu to co–chair this special committee and issued the following statement: “All employees…
U.S. Treasury Announces Largest Settlements in History with World’s Largest Virtual Currency Exchange Binance for Violations of U.S. Anti-Money Laundering and Sanctions Laws
November 21, 2023 / Source: Treasury
WASHINGTON — The U.S. Department of the Treasury, through the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and IRS Criminal Investigation (CI), has taken unprecedented action to hold Binance Holdings Ltd. and its affiliates (collectively, Binance) accountable for violations of the U.S. anti-money laundering (AML) and sanctions laws that protect…
CFPB Orders Toyota Motor Credit to Pay $60 Million for Illegal Lending and Credit Reporting Misconduct
November 20, 2023 / Source: CFPB
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today ordered Toyota Motor Credit Corporation to pay $60 million in consumer redress and penalties for operating an illegal scheme to prevent borrowers from cancelling product bundles that increased their monthly car loan payments. The company withheld refunds or refunded incorrect amounts on the bundled products and…
CFPB and 11 States Order Prehired to Provide Students More than $30 Million in Relief for Illegal Student Lending Practices
November 20, 2023 / Source: CFPB
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) and 11 states announced today that Prehired will provide more than $30 million in relief to student borrowers for making false promises of job placement, trapping students with “income share” loans that violated the law, and resorting to abusive debt collection practices when borrowers could not pay….
Federal Reserve Board announces pricing, effective January 2, 2024, for payment services the Federal Reserve Banks provide to banks and credit unions, such as the clearing of checks, ACH transactions, and wholesale payment settlement services
November 19, 2023 / Source: FRB
The Federal Reserve Board on Friday announced pricing, effective January 2, 2024, for payment services the Federal Reserve Banks provide to banks and credit unions, such as the clearing of checks, automated clearing house (ACH) transactions, and wholesale payment and settlement services. By law, the Federal Reserve must establish fees to recover the costs, including…
U.S. Department of the Treasury, IRS Propose New Rules to Drive Clean Energy Investments
November 19, 2023 / Source: Treasury
WASHINGTON —Today, the U.S. Department of the Treasury and Internal Revenue Service (IRS) released guidance on the Investment Tax Credit (ITC) under Section 48 of Internal Revenue Code to spur the investment boom ushered in by President Biden’s Inflation Reduction Act. Today’s guidance provides the private sector with additional clarity and certainty in making investment decisions for…
CFPB Report Highlighting Consumer Protection Issues in Medical Debt Collection
November 16, 2023 / Source: CFPB
WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued a report highlighting the challenges American families face when debt collectors pursue allegedly unpaid medical bills. Discussing the 8,500 complaints submitted in 2022 by servicemembers, older adults, and other consumers relating to medical debt collections, the CFPB’s annual report to Congress on the Fair Debt Collection Practices…
Treasury Department Announces Approval of Up to $62 Million to Support Small Businesses in Washington, D.C. as Part of President Biden’s Investing in America Agenda
November 16, 2023 / Source: Treasury
WASHINGTON — Today, the U.S. Department of the Treasury announced the approval of Washington, D.C.’s plan for up to $62 million in funding under the American Rescue Plan’s State Small Business Credit Initiative (SSBCI), part of President Biden’s Investing in America agenda. The Treasury Department has now announced the approval of state, territory, D.C., and…
Acting Comptroller of the Currency Testifies on Regulatory Priorities
November 15, 2023 / Source: OCC
WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu today testified on regulatory priorities before the Committee on Financial Services of the U.S. House of Representatives. In his testimony, Mr. Hsu discussed efforts to promote the resiliency, resolvability, and inclusiveness of the federal banking system. He also provided an overview of the state of the federal…
New U.S. Department of the Treasury Analysis: Two Years In, Bipartisan Infrastructure Law Is Spurring Historic Surge in Infrastructure Investments, Especially in States with The Greatest Needs
November 15, 2023 / Source: Treasury
WASHINGTON – Today, on the second anniversary of the signing of the Bipartisan Infrastructure Law (BIL), the U.S. Department of the Treasury published analysis on how the BIL has strengthened long-term productive capacity in the U.S. while creating a fairer future for Americans in economically disadvantaged communities. The analysis by Assistant Secretary for Economic Policy (P.D.O.) Eric Van Nostrand describes how the…
CFPB Fines Repeat Offender Enova $15 Million for Violating Order, Deceiving Customers, and Withdrawing Funds Without Consent
November 15, 2023 / Source: CFPB
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today ordered online lender Enova International Inc. to pay a $15 million penalty for widespread illegal conduct including withdrawing funds from customers’ bank accounts without their permission, making deceptive statements about loans, and cancelling loan extensions. Enova paid a $3.2 million penalty to the CFPB in 2019,…
Acting Comptroller of the Currency Testifies on Bank Supervision
November 14, 2023 / Source: OCC
WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu today testified on bank supervision before the Committee on Banking, Housing, and Urban Affairs of the U.S. Senate. In his testimony, Mr. Hsu discussed the condition of the federal banking system and recent regulatory developments. He also highlighted the Office of the Comptroller of the Currency’s work…
Testimony by Vice Chair for Supervision Barr on supervision and regulation
November 14, 2023 / Source: FRB
Chairman Brown, Ranking Member Scott, and other members of the Committee, thank you for the opportunity to testify on the Federal Reserve’s supervisory and regulatory activities. Accompanying my testimony is the Federal Reserve’s semiannual Supervision and Regulation Report. Today, I will discuss current conditions in the banking sector, supervision, and some of our recent regulatory proposals….
United States and United Kingdom Take Coordinated Action Against Hamas Leaders and Financiers
November 14, 2023 / Source: Treasury
WASHINGTON — Today, U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed its third round of sanctions targeting Hamas-affiliated individuals and entities since the October 7 Hamas terrorist attacks on Israel. This action designates key Hamas officials and the mechanisms by which Iran provides support to Hamas and Palestinian Islamic Jihad (PIJ). Today’s…
Agencies Announce Dollar Thresholds for Smaller Loan Exemption from Appraisal Requirements for Higher-priced Mortgage Loans
November 13, 2023 / Source: CFPB
WASHINGTON, D.C. – The Consumer Financial Protection Bureau, the Federal Reserve Board, and the Office of the Comptroller of the Currency today announced that the 2024 threshold for whether higher-priced mortgage loans are subject to special appraisal requirements will increase from $31,000 to $32,400. The threshold amount will be effective January 1, 2024, and is based…
Agencies Announce Dollar Thresholds for Applicability of Truth in Lending and Consumer Leasing Rules for Consumer Credit and Lease Transactions
November 13, 2023 / Source: CFPB
WASHINGTON, D.C. – The Federal Reserve Board and the Consumer Financial Protection Bureau today announced the dollar thresholds used to determine whether certain consumer credit and lease transactions in 2024 are subject to certain Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) requirements. By law, the agencies are required to adjust the thresholds annually…
New U.S. Department of the Treasury Analysis Highlights How Policies to Address Climate Change Promote Economic Growth
November 13, 2023 / Source: Treasury
WASHINGTON – Today the U.S. Department of the Treasury published analysis on how the Inflation Reduction Act, Bipartisan Infrastructure Law, and other federal policies to address climate change can promote economic growth. The analysis by Assistant Secretary for Economic Policy (P.D.O.) Eric Van Nostrand and Deputy Assistant Secretary for Climate & Energy Economics Arik Levinson describes…
U.S. Department of the Treasury Announces Members of the Commission on Social Impact Partnerships
November 9, 2023 / Source: Treasury
WASHINGTON – The U.S. Department of the Treasury today announced the members of the Commission on Social Impact Partnerships ahead of the next Notice of Funding Availability (NOFA) under the Social Impact Partnership to Pay for Results Act (SIPPRA). The Commission is an advisory body that makes recommendations to the Treasury Secretary on the SIPPRA…
CFPB Orders Citi to Pay $25.9 Million for Intentional, Illegal Discrimination Against Armenian Americans
November 8, 2023 / Source: CFPB
WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) ordered Citi to pay $25.9 million in fines and consumer redress for intentionally and illegally discriminating against credit card applicants the bank identified as Armenian American. From 2015 through 2021, Citi singled out for discrimination applicants for certain credit card products, based on their surnames, whom…
FinCEN Finalizes Rule on Use of FinCEN Identifiers in Beneficial Ownership Information Reporting
November 7, 2023 / Source: FinCEN
WASHINGTON—The Financial Crimes Enforcement Network (FinCEN) is issuing a final rule that specifies the circumstances in which a reporting company may report an entity’s FinCEN identifier in lieu of information about an individual beneficial owner. A FinCEN identifier is a unique number that FinCEN will issue upon request after receiving required information. Although there is no requirement…
CFPB Proposes New Federal Oversight of Big Tech Companies and Other Providers of Digital Wallets and Payment Apps
November 7, 2023 / Source: CFPB
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) is proposing to supervise larger nonbank companies that offer services like digital wallets and payment apps. Driven largely by Big Tech and other large technology firms, digital payment apps and wallets continue to grow in popularity, but many of the companies are not subject to CFPB supervisory…
READOUT: FinCEN Hosts Public-Private Dialogue on Cyber-Related Terrorism Financing
November 6, 2023 / Source: FinCEN
WASHINGTON—On November 2, the Financial Crimes Enforcement Network (FinCEN) hosted a FinCEN Exchange focused on the threat posed by the illicit use of convertible virtual currency in light of Hamas’ brutal terrorist attacks in Israel and the critical role the financial industry plays in detecting terrorism financing. The Exchange included presentations by FinCEN and Federal…