Regulatory Compliance Updates for Banks & Credit Unions – September 2020 Recap

September brought a change of season as well as many regulatory compliance changes. We’ve rounded up some top updates that impact you and your financial institution. Continue reading to ensure you are up to date on a few of the most recent regulations.

FinCEN: AML Exemption for Banks without Federal Regulator Removed

On September 14, 2020, FinCEN published a final rule removing the AML program exemption for banks without a federal functional regulator. This final rule will ensure consistent Bank Secrecy Act (BSA) coverage across the banking industry. The final rule also extends to customer identification programs and beneficial ownership requirements.

Why Is This Important to My Financial Institution?

Banks without a federal functional regulator have 180 days from the day the final rule is published in the Federal Register to be compliant. FinCEN expects that banks lacking a Federal functional regulatory will be able to use existing policies and procedures to fulfill the new obligations. Review the final rule for more details.

Regulatory compliance Recap September 2020

FinCEN Proposes Amending AML Program Requirements

On September 16, 2020, FinCEN issued an Advanced Notice of Proposed Rulemaking (ANPRM) to solicit public comment on questions pertaining to potential regulatory amendments under the Bank Secrecy Act. The goal is to increase the effectiveness and efficiency of anti-money laundering programs. The potential amendments would make it clear that an “effective and reasonably designed” program is one that:

  • Assesses and manages risk as informed by a financial institution’s own assessment process, including consideration of AML priorities to be issued by FinCEN consistent with the proposed amendments
  • Provides for compliance with BSA requirements
  • Provides for the reporting of information with a high degree of usefulness to government authorities.

Comments need to be submitted within 60 days of the publication in the Federal Register.

Why Is This Important to My Financial Institution?

This comment period could assist in not only gaining efficiencies in financial institution AML programs but also strengthen the national AML regime. Comments from all interested parties will help inform the scope of any future regulatory actions.

Main Street Lending Program FAQs Updated

The Federal Reserve Board has updated its FAQs to clarify the Department of the Treasury’s underwriting expectations. The FAQs explain that the underwriter should review not only the pre-pandemic condition but also look at the borrower’s future prospects post-pandemic.

Main Street Lending Program FAQ – For-Profit Businesses

Main Street Lending Program FAQ – Non-Profit Businesses

Why Is This Important to My Financial Institution?

These PDFs can be downloaded and shared with your underwriters to assist in any questions or necessary clarifications around the Main Street Lending Program.

Same-Day ACH Changes Due in March

The new processing window for Same Day ACH is now at 6 months. The ACH Rules change establishes a third and later same-day ACH processing and settlement window with a settlement deadline of 4:45 p.m. ET and settlement at 6 p.m. E.T.

Why Is This Important to Me and My Financial Institution?

The Federal Reserve has published a Resource Center for financial institutions to assist in preparations and implementation of the new Same Day ACH processing window. The above link goes to the FedACH processing schedule, the Resource Center, and more.

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 |2020-10-07T15:07:06-06:00October 7th, 2020|Bank, Credit Union, Financial Services|0 Comments

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