FinCEN proposes terminating anti-money laundering exemption

The Financial Crimes Enforcement Network published in the Aug. 25 Federal Register a proposed rule to remove the anti-money laundering program exemption for banks that lack a federal functional regulator, including, but not limited to, private banks, non-federally insured credit unions and certain trust companies. The proposed rule would prescribe minimum standards for anti-money laundering programs for banks without a federal functional regulator to ensure all banks – regardless of whether they are subject to federal regulation and oversight – are required to establish and implement anti-money laundering programs. It also would extend customer identification program requirements and beneficial ownership requirements to those banks not already subject to these requirements.

Comments on the proposal are due by Oct. 24.


FTC requests comment on Safeguards Rule

The Federal Trade Commission announced Aug. 29 it is requesting public comment on its Standards for Safeguarding Customer Information, also known as the Safeguard Rule. The rule, which took effect in 2003, requires financial institutions to develop, implement and maintain a comprehensive information security program for handling customer information. The FTC is seeking comments on a number of questions, including the economic impact and benefits of the rule; possible conflict between the rule and state, local or other federal laws or regulations; and the effect on the rule of any technological, economic or other industry changes.

Comments are due by Nov. 7.


Treasury issues fact sheet on anti-money laundering

On Aug. 30, the U.S. Treasury Department and federal banking agencies issued a joint fact sheet on foreign correspondent banking that outlines supervisory and enforcement processes with respect to anti-money laundering and sanctions in the area of correspondent banking. The report indicates about 95% of Bank Secrecy Act and Office of Foreign Assets Control compliance deficiencies identified by regulators are corrected by the institution’s management without the need for any enforcement action or penalty.


CFPB spotlights elder financial abuse

On Aug. 23, the Consumer Financial Protection Bureau issued a press release and posted an article concerning elder financial abuse. A guide and best practices to help communities create partnerships for seniors and ways individuals can support community efforts to fight elder financial exploitation are discussed.


Credit unions

NCUA checklist to help credit unions with diversity

The National Credit Union Administration has created a Voluntary Credit Union Self-Assessment Checklist to help credit unions assess their diversity and inclusion policies and practices and identify opportunities to put those policies and practices to work.

The goal of this voluntary self-assessment is to establish a baseline for evaluating diversity and inclusion in the credit union system. Individual credit union assessment results will not be shared with examiners and will have no bearing on CAMEL ratings.

In addition to the checklist, the NCUA also has posted an article on its website explaining a business investment case for diversity as well as the Interagency Policy Statement Establishing Joint Standards for Assessing the Diversity Policies.


More Compliance News

DOD provides guidance on Military Lending Act regulation

The U.S. Department of Defense published in the Aug. 26 Federal Register an interpretive rule providing guidance on its Military Lending Act regulation. The guidance provides answers to frequently asked questions regarding compliance with the Military Lending Act final rule, which was adopted in July 2015. The act, as implemented by the DOD, limits the military annual percentage rate that a creditor may charge to a maximum of 36%, requires certain disclosures, and provides other substantive consumer protections to service members and their families.


CFPB provides TRID resource for settlement professionals

The Consumer Financial Protection Bureau announced on Aug. 24 that it has created a new webpage, Know Before You Owe: The settlement professional’s guide. The webpage is designed to help settlement professionals navigate through the changes that are a part of the Know Before You Owe mortgage initiative, often referred to as the TRID rule.


By |2019-11-25T07:59:14-06:00September 12th, 2016|Financial Services|0 Comments

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