There were five noteworthy regulatory and compliance updates for banks and credit unions in May of 2022. Below are the details on these changes and how they affect you and your institution.
CFPB Launches New System to Promote Consistent Enforcement of Consumer Financial Protections
To promote consistency among enforcers and fair competition in the market, the CFPB is launching a new system to provide guidance to other agencies with consumer financial protection responsibilities on how the CFPB intends to enforce federal consumer financial law. The CFPB will issue Consumer Financial Protection Circulars to the broad set of government agencies responsible for enforcing federal consumer financial law.
Why Is This Important to Me?
The CFPB is the principal regulator responsible for administering the federal consumer financial laws, including the Fair Credit Reporting Act (FCRA), the Fair Debt Collection Practices Act (FDCPA), the Consumer Financial Protection Act, and many others. However, the CFPB is not the only enforcer of these laws, and enforcement responsibility is spread over a large set of state and federal government agencies. It can become confusing or inconsistent across agencies. Share this with colleagues who are responsible for compliance with the federal consumer financial laws.
Treasury Announces 2022 National Illicit Finance Strategy
The U.S. Department of the Treasury issued the 2022 National Strategy for Combating Terrorist and Other Illicit Financing, which identifies measures to increase transparency in the U.S. financial system and strengthen the U.S. anti-money laundering/counter the financing of terrorism (AML/CFT) framework. It reflects the complex challenges posed by a world remade by the COVID-19 pandemic, the increasing digitization of financial services, and rising levels of corruption and fraud.
Why Is This Important to Me?
Share this with colleagues whose job roles are focused on AML/BSA tactics.
Agencies Release Revised Interagency Questions and Answers Regarding Flood Insurance
Five federal regulatory agencies jointly issued revised questions and answers (Q&As) regarding federal flood insurance law and the agencies’ implementing regulations. These Q&As replace those originally published by the agencies in 2009 and 2011 and consolidate Q&As proposed by the agencies in 2020 and 2021. The revised Q&As reflect significant changes to the flood insurance requirements made by federal law in recent years.
Why Is This Important to Me?
Share this information with your colleagues in case they haven’t yet heard about these changes. We have a webinar discussing the changes – Flood FAQs, coming on 06/28/2022.
Agencies Issue Joint Proposal to Strengthen and Modernize Community Reinvestment Act Regulations
Federal bank regulatory agencies jointly issued a proposal to strengthen and modernize regulations implementing the Community Reinvestment Act (CRA) to better achieve the purposes of the law. CRA is a landmark law enacted 45 years ago to encourage banks to help meet the credit needs of their local communities, including low- and moderate-income (LMI) neighborhoods, in a safe and sound manner.
Why Is This Important to Me?
Share this showcase with any colleagues who may wish to have their comments addressed during the comment period, which ends on 08/05/2022.
FSB Launches Consultation on Supervisory and Regulatory Approaches to Climate-Related Risk
The Financial Stability Board (FSB) published a report that aims to assist supervisory and regulatory authorities in developing their approaches to monitor, manage, and mitigate cross-sectoral and system-wide risks arising from climate change and to promote consistent approaches across sectors and jurisdictions.
Why Is This Important to Me?
Share this report with colleagues. The FSB is inviting comments on its recommendations and includes a set of questions for this purpose. The public consultation period ends on 06/30/2022.
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.