Regulatory Compliance Updates for Banks & Credit Unions – December 2021 Recap

This article contains six noteworthy regulatory and compliance updates for banks and credit unions in December 2021 and practical and effective ways you can ensure your team is ready. Continue reading for details on these changes and how they affect you and your institution.

July Regulatory Compliance Updates for Banks and Credit Unions

FHFA Announces Conforming Loan Limits for 2022

The Federal Housing Finance Agency (FHFA) announced the conforming loan limits (CLLs) for mortgages to be acquired by Fannie Mae and Freddie Mac (the Enterprises) in 2022. In most of the U.S., the 2022 CLL for one-unit properties will be $647,200, an increase of $98,950 from $548,250 in 2021.

Why Is This Important to Me?

Share these threshold limit changes with all lending staff to ensure compliance.

FFIEC BSA/AML Exam Manual Updated

The Federal Financial Institutions Examination Council (FFIEC) released one new section and updates to three sections of the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual. The updates affect the following sections:

  • Introduction – Customers (new)
  • Charities and Nonprofit Organizations
  • Independent Automated Teller Machine Owners or Operators
  • Politically Exposed Persons

The updates should not be interpreted as new requirements or as a new or increased focus on certain areas. Rather, these sections provide information and considerations related to certain customers that may indicate the need for bank policies, procedures, and processes to address potential money laundering, terrorist financing, and other illicit financial activity risks. These sections provide further transparency into the BSA/AML examination process.

Why Is This Important to Me?

Share this information with colleagues responsible for BSA/AML exams at your institution. OnCourse Learning is offering a webinar on this topic on 1/26/2022.

Speaker: Deborah Crawford

Wednesday, January 26th  |  10:00 am CT

Covered Topics

  • Line by Line look at these new sections
  • Changed audit procedures
  • Learn if anything needs to go to your Board of Directors
  • Learn if anything needs to be changed in your approach or procedures

Who Should Attend? BSA Officers, BSA Staff, Deposit Operations, Compliance and Branch Staff.

Register Here

OCC Solicits Academic Papers, Research on Climate Risk in Banking and Finance

The Office of the Comptroller of the Currency (OCC) is soliciting academic-focused papers and policy-focused research on climate risk in banking and finance for presentation to the OCC on June 6-7, 2022. Information presented will inform the OCC’s approach to developing climate-related financial risk management guidance for regulated institutions.

Why Is This Important to Me?

Climate change has been a “hot topic” across multiple industries, including the financial industry. Expect for further guidance and eventual regulation around climate risk in the near future.

FinCEN Issues Proposed Rule for Beneficial Ownership Reporting to Contact Illicit Finance and Increase Transparency

The Financial Crimes Enforcement Network (FinCEN) today issued a Notice of Proposed Rulemaking (NPRM) to implement the beneficial ownership information reporting provisions of the Corporate Transparency Act (CTA). The proposed rule is designed to protect the U.S. financial system from illicit use and impede malign actors from abusing legal entities, like shell companies, to conceal proceeds of corrupt and criminal acts. Such abuses undermine U.S. national security, economic fairness, and the integrity of the U.S. financial system.

The proposed rule addresses, among other things, who must report beneficial ownership information, when they must report, and what information they must provide. Collecting this information and providing access to law enforcement, financial institutions, and other authorized users will diminish the ability of malign actors to hide, move, and enjoy the proceeds of illicit activities.

Why Is This Important to Me?

Share this information with colleagues who are involved with beneficial ownership in some way, either through new accounts or lending. OnCourse Learning is offering a webinar on this topic on 1/28/2022.

Speaker: Deborah Crawford

Friday, January 28th  |  10:00 am CT

Covered Topics

  • Line-by-Line look at the proposed regulation
  • Key elements
  • Definitions
  • What is a reporting company?
  • Who are beneficial owners?
  • Who is the company applicant?
  • Requirements for companies
  • Next steps

Who Should Attend? Compliance, BSA, Deposit Operations, New Accounts, Personal Bankers, Loan Officers, Branch Staff and Training.

Register Here

“Reforming Overdraft Programs to Empower and Promote Financial Health”

Acting Comptroller of the Office of the Comptroller of the Currency (OCC) Michael Hsu spoke about overdraft fees and overdraft protection programs at the 34th annual Consumer Federal of America’s Financial Services Conference. Hsu shared several features of bank overdraft programs that the OCC staff have identified that could support consumer financial health, including banks:

  • requiring consumer opt-in to the overdraft program.
  • providing a grace period before charging an overdraft fee.
  • allowing negative balances without triggering an overdraft fee.
  • offering consumers balance-related alerts.
  • providing consumers with access to real-time balance information.
  • linking a consumer’s checking account to another account for overdraft protection.
  • collecting overdraft or NSF fees from a consumer’s next deposit only after other items have been posted or cleared.
  • not charging separate and multiple overdraft fees for multiple items in a single day and not charging additional fees when an item is re-presented.

 Why Is This Important to Me?

Overdraft fees and overdraft programs will be under some additional scrutiny in 2022. Expect some additional guidance or updates to the current rules.

CFPB Updates Electronic Funds Transfers FAQs

The Consumer Finance Protection Bureau (CFPB) updated the Electronic Funds Transfer FAQ, including the following topics:

  • Coverage: Transactions
  • Coverage: Financial Institutions
  • Error Resolution
  • Error Resolution: Unauthorized EFTs

Why Is This Important to Me?

Share this information with colleagues in the depository space. OnCourse Learning is offering a webinar on this topic on 2/22/2022.

Speaker: Deborah Crawford

Tuesday, February 22nd  |  1:30 pm CT

Covered Topics

  • Coverage: Transactions
  • Coverage: Financial Institutions
  • Error Resolution
  • Error Resolution: Unauthorized EFTs

Who Should Attend? Compliance officers, Regulation E staff, deposit operations, branch administration, branch staff, risk management and training.

Register Here

Rachel Davis - Product Manager at OCL

About the Author

Rachel Davis

Product Manager at OnCourse Learning

Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.

Rachel Davis - Product Manager at OCL

About the Author

Rachel Davis

Product Manager at OnCourse Learning

Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.

By |2021-12-28T11:24:14-06:00December 28th, 2021|Bank, Credit Union, Financial Services|Comments Off on Regulatory Compliance Updates for Banks & Credit Unions – December 2021 Recap