There were four noteworthy regulatory and compliance updates for banks and credit unions in February of 2023. Below are the details on these changes and how they affect you and your institution.
FRB Board Governor Warns of Risks in Crypto Assets
Federal Reserve Governor Christopher Waller spoke at the Global Interdependence Center Conference, warning attendees of the risks of crypto assets to financial institutions. He warned that “crypto-assets are risky and many of the firms dealing with them are in their infancy.” While he is supportive of innovation within the financial industry, institutions need to ensure they are meeting stringent “know your customer” and AML requirements.
Why Is This Important to Me?
- Share this article with colleagues who are interested in learning more about the risks and benefits of cryptocurrency to the financial industry. OnCourse Learning also has webinars on cryptocurrency you may wish to attend:
FinCEN Requesting Nominations for New BSA Advisory Group
FinCEN is inviting the public to nominate financial institutions, trade groups, and non-federal regulators or law enforcement agencies for membership on the Bank Secrecy Act Advisory Group. New members will be selected for three-year membership terms. Nominations must be received by March 15, 2023.
Why Is This Important to Me?
Share this information with colleagues if you feel that your institution may be a good fit for this new advisory board.
Fed & OCC Release Stress Test Scenarios
The Federal Reserve Board released the hypothetical scenarios for the annual stress test. The stress test helps to ensure large financial institutions can continue lending to consumers and businesses even in the event of a severe recession. In addition, the OCC released the Dodd-Frank Act stress test scenarios.
Why Is This Important to Me?
Share these stress tests with colleagues if they apply to your financial institution.
FDIC Explains Stance on HMDA’s Closed-End Mortgage Loan Volume Reporting Threshold
The Federal Deposit Insurance Corporation (FDIC) is issuing this Financial Institution Letter to inform supervised institutions of recent changes regarding the Home Mortgage Disclosure Act (HMDA) reporting threshold for closed-end mortgage loans and the FDIC’s supervisory approach for enforcing related requirements. For FDIC-supervised institutions that meet Regulation C’s coverage requirements, the threshold for reporting data on closed-end mortgage loans is now 25 loans in each of the two preceding calendar years. In addition, for closed-end mortgage data collected in the years 2022, 2021, or 2020, the FDIC does not intend to initiate enforcement actions or cite HMDA violations for certain failures to report such loan data.
Why Is This Important to Me?
The FDIC’s position on the HMDA is similar to the CFPB’s position. They recognize that institutions affected by this reporting change may need time to implement or adjust policies, procedures, systems, and operations to come into compliance with reporting obligations. All of OCL’s Regulation C/Home Mortgage Disclosure Act courseware has been updated to reflect this change.
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.
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.