Banker Compliance News

Banking compliance professionals require hot-topic news on consumer and regulatory compliance updates, decisions, amendments, changes and launches from across a wide spectrum of news agencies and federal websites. Not only do we update our News pages with individual news items and their links, but these are sent to members in a Daily Bank Compliance email that can be signed up for once new members log-in.¬†Compliance Alliance monitors these agencies for bank compliance news updates throughout the day‚ÄĒposting relevant information to our News page. This is a valuable resource for Bank Managers and their employees.

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Adjustable-rate loans are changing, because a widely-used interest rate index expires in June

April 30, 2023 / Source: CFPB

LIBOR is the name for an index of interest rates used in loans across the country and across the globe. LIBOR expires on June 30, 2023, as part of a transition that has been planned for several years. Adjustable-rate loans based on LIBOR must change to a replacement index. The transition affects adjustable-rate mortgages, home…

CFPB Issues Rule to Facilitate Orderly Wind Down of LIBOR

April 30, 2023 / Source: CFPB

Interim final rule contains updates to reflect a new law and Federal Reserve Board regulation WASHINGTON, D.C.¬†‚Äď Today, the Consumer Financial Protection Bureau (CFPB) issued an interim final rule amending the agency‚Äôs 2021 LIBOR transition rule. The interim final rule contains updates to reflect the subsequent enactment of the Adjustable Interest Rate (LIBOR) Act and…

Federal Reserve Board announces the results from the review of the supervision and regulation of Silicon Valley Bank, led by Vice Chair for Supervision Barr

April 30, 2023 / Source: FRB

The Federal Reserve Board on Friday announced the results from the review of the supervision and regulation of Silicon Valley Bank, led by Vice Chair for Supervision Michael S. Barr. The review finds four key takeaways on the causes of the bank’s failure: Silicon Valley Bank’s board of directors and management failed to manage their…

Report on Foreign Portfolio Holdings of U.S. Securities at End-June 2022

April 30, 2023 / Source: Treasury

Washington – The final results from the annual survey of foreign portfolio holdings of U.S. securities at the end of June 2022 were released today on the Treasury website at¬†https://home.treasury.gov/data/treasury-international-capital-tic-system/us-liabilities-to-foreigners-from-holdings-of-us-securities. The survey was undertaken jointly by Treasury, the Federal Reserve Bank of New York, and the Board of Governors of the Federal Reserve System. The…

Credit reporting companies should do more to ensure that servicemembers receive the free credit monitoring services they are legally entitled to

April 27, 2023 / Source: CFPB

The unique demands and challenges of serving in the military ‚Äď including permanent change of duty stations and multiple deployments ‚Äď can make it difficult for servicemembers to review their credit reports, identify suspicious accounts, and dispute inaccuracies. Unsurprisingly, servicemembers¬†report¬†¬†more cases of identity theft than other adults. The law requires credit reporting companies to offer…

Securities Transaction Settlement Cycle

April 27, 2023 / Source: FDIC

Summary: FDIC regulations at 12 CFR 344.7 require FDIC‚Äďsupervised institutions to settle most securities transactions within the number of business days in the ‚Äústandard settlement cycle followed by registered broker dealers in the United States‚ÄĚ unless otherwise agreed to by the parties at the time of the transaction.¬† The regulation specifies that FDI‚Äďinstitutions must determine…

Statement of FinCEN Acting Director Himamauli Das before the House Committee on Financial Services

April 27, 2023 / Source: FinCEN

April 27, 2023 Prepared remarks of FinCEN Acting Director Himamauli Das before the U.S. House Committee on Financial Services HHRG-118-HFSC-DasH-20230427.pdf305.8 KB

READOUT: Treasury Department Convenes Roundtable Discussion on Inflation Reduction Act Incentives for Underserved Communities

April 27, 2023 / Source: Treasury

WASHINGTON, D.C. ‚Äď Today, Deputy Secretary of the Treasury Wally Adeyemo led the next in a series of roundtable discussions with nearly 40 small climate businesses and nonprofit developers in the clean energy industry on how the Low-Income Communities Bonus Credit Program will incentivize investment in underserved communities, and ensure all Americans benefit from the…

Treasury Sanctions Officials of Iranian Intelligence Agency Responsible for Detention of U.S. Nationals in Iran

April 27, 2023 / Source: Treasury

State Department is concurrently designating Russian and Iranian entities for wrongful detention of U.S. nationals¬†   WASHINGTON ‚ÄĒ Today, the Department of the Treasury‚Äôs Office of Foreign Assets Control (OFAC) sanctioned four senior officials of Iran‚Äôs Islamic Revolutionary Guard Corps Intelligence Organization (IRGC-IO), an entity that is being concurrently designated by the State Department for…

CFPB Issues Guidance to Protect Homeowners from Illegal Collection Tactics on Zombie Mortgages

April 26, 2023 / Source: CFPB

It is illegal for debt collectors to sue or threaten to sue to collect debts past the statute of limitations WASHINGTON, D.C.¬†‚Äď Today, the Consumer Financial Protection Bureau (CFPB) issued guidance on debt collectors, covered by the Fair Debt Collection Practices Act, threatening to foreclose on homes with mortgages past the statute of limitations. The…

Consumer Credit and the Removal of Medical Collections from Credit Reports

April 26, 2023 / Source: CFPB

The three nationwide consumer reporting companies announced the removal of medical collections under $500 from consumer credit reports on April 11, 2023. We estimate that this reporting change removed at least one medical collection from the credit reports of 22.8 million people and removed all medical collections from the credit reports of approximately 15.6 million…

Office of Research blog: Who gets sued in civil courts? Civil judgments are not evenly distributed

April 26, 2023 / Source: CFPB

Credit card delinquencies have¬†started to rise recently¬†¬†after falling during the pandemic. For creditors, the final recourse to collect an unpaid debt is typically to sue the consumer in state civil courts. If the creditor wins the suit, the resulting ‚Äúcivil judgment‚ÄĚ will often give the creditor the right to garnish wages or seize bank accounts,…

Joint Statement on Completing the LIBOR Transition

April 26, 2023 / Source: FDIC

Summary: The Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the National Credit Union Administration (NCUA), and the Consumer Financial Protection Bureau (CFPB) in conjunction with the state bank and state credit union regulators (collectively, agencies) are jointly issuing…

FinCEN Assesses $1.5 Million Civil Money Penalty against Kingdom Trust Company for Violations of the Bank Secrecy Act

April 26, 2023 / Source: FinCEN

WASHINGTON‚ÄĒThe Financial Crimes Enforcement Network has assessed a $1.5 million¬†civil money penalty¬†on South Dakota-chartered The Kingdom Trust Company (Kingdom Trust) for willful violations of the Bank Secrecy Act (BSA) and its implementing regulations. This is FinCEN‚Äôs first enforcement action against a trust company. ‚ÄúKingdom Trust had virtually no process to identify and report suspicious transactions,…

CFPB and Federal Partners Confirm Automated Systems and Advanced Technology Not an Excuse for Lawbreaking Behavior

April 25, 2023 / Source: CFPB

Tech marketed as ‚Äúartificial intelligence‚ÄĚ and as taking bias out of decision making has the potential to produce outcomes that result in unlawful discrimination WASHINGTON, D.C.¬†‚Äď Four federal agencies jointly pledged today to uphold America‚Äôs commitment to the core principles of fairness, equality, and justice as emerging automated systems, including those sometimes marketed as ‚Äúartificial…

Director Chopra‚Äôs Prepared Remarks on the Interagency Enforcement Policy Statement on ‚ÄúArtificial Intelligence‚ÄĚ

April 25, 2023 / Source: CFPB

In recent years, we have seen a rapid acceleration of automated decision-making across our daily lives. Throughout the digital world and throughout sectors of the economy, so-called ‚Äúartificial intelligence‚ÄĚ is automating activities in ways previously thought to be unimaginable. Generative AI, which can produce voices, images, and videos that are designed to simulate real-life human…

FinCEN Fiscal Year 2022 in Review

April 25, 2023 / Source: FinCEN

WASHINGTON‚ÄĒThe Financial Crimes Enforcement Network (FinCEN) today issued its¬†FinCEN Year in Review for FY 2022. The Year in Review is intended to help stakeholders gain insight into both FinCEN‚Äôs efforts to support law enforcement and national security agencies, and how financial information‚ÄĒfiled pursuant to the Bank Secrecy Act (BSA)‚ÄĒis used. ‚ÄúThe information that financial institutions…

Treasury Department Announces 2023 De-Risking Strategy

April 25, 2023 / Source: Treasury

WASHINGTON ‚ÄĒ Today, the U.S. Department of the Treasury issued the¬†2023 De-risking Strategy, as mandated by Congress in the Anti-Money Laundering Act of 2020. The first of its kind, the Strategy examines the phenomenon of financial institutions de-risking and its causes, and it identifies those greatest impacted. It also offers recommended policy options to combat…

Treasury Sanctions Senior Iranian Officials Overseeing Violent Protest Suppression and Censorship

April 24, 2023 / Source: Treasury

WASHINGTON ‚ÄĒ Today, the Department of the Treasury‚Äôs Office of Foreign Assets Control (OFAC) sanctioned four senior officials of the Law Enforcement Forces of Iran (LEF) and Islamic Revolutionary Guard Corps (IRGC), the primary Iranian security forces responsible for the regime‚Äôs brutal suppression of the protests that broke out in September 2022 following the arrest…

Treasury Targets Actors Facilitating Illicit DPRK Financial Activity in Support of Weapons Programs

April 24, 2023 / Source: Treasury

WASHINGTON ‚ÄĒ Today, the Department of the Treasury‚Äôs Office of Foreign Assets Control (OFAC) sanctioned three individuals for providing support to the Democratic People‚Äôs Republic of Korea (DPRK) through illicit financing and malicious cyber activity. The DPRK launders stolen virtual currency and deploys information technology (IT) workers to fraudulently obtain employment to generate revenue in…

Interagency Policy Statement on Allowances for Credit Losses (Revised April 2023)

April 23, 2023 / Source: FDIC

Summary: The federal financial institution regulatory agencies have jointly issued the attached¬†Interagency Policy Statement on Allowances for Credit Losses¬†(Revised April 2023) (revised statement). The agencies issued this revised statement in response to changes in the accounting guidance for troubled debt restructurings (TDRs) by creditors under U.S. generally accepted accounting principles (U.S. GAAP). Statement of Applicability:¬†The…

Acting Comptroller Issues Statement at Financial Stability Oversight Council Meeting

April 23, 2023 / Source: OCC

WASHINGTON‚ÄĒActing Comptroller of the Currency Michael J. Hsu today issued the following statement at the Financial Stability Oversight Council (FSOC) meeting: Thank you, Madam Secretary, for your strong leadership of the Council on this important project. I would also like to extend my thanks to the FSOC staff and the staff of the Council members…

FSOC Issues for Public Comment Proposed Analytic Framework for Financial Stability Risks and Proposed Guidance on Nonbank Financial Company Determinations

April 23, 2023 / Source: Treasury

WASHINGTON ‚Äď The Financial Stability Oversight Council (Council) today voted unanimously to issue for public comment a proposed analytic framework for financial stability risks.¬† This new framework is intended to provide greater transparency to the public about how the Council identifies, assesses, and addresses potential risks to financial stability, regardless of whether the risk stems…

Federal Reserve issues initial findings from its 2022 triennial payments study

April 23, 2023 / Source: FRB

The Federal Reserve on Friday issued initial findings from its 2022 triennial payments study. The information shows how consumers and businesses chose to make noncash payments, using checks, different types of cards, and the automated clearinghouse (ACH). Additional details will be available as analysis is completed. The data show that the average values of consumers’…

Statement of CFPB Director Rohit Chopra on the Proposed Restoration of the Financial Stability Oversight Council’s Authority and Regulatory Credibility

April 23, 2023 / Source: CFPB

Today, we are restoring the Financial Stability Oversight Council‚Äôs most important tool to prevent future meltdowns and bailouts in the shadow banking sector. One of the biggest problems we face when confronting the dangers in our financial system is regulatory amnesia. While the financial crisis ruined the lives of families across the country, memories fade…