Regulatory Compliance Updates for Banks & Credit Unions – April 2024 Recap

There were six noteworthy regulatory and compliance updates for banks and credit unions in April of 2024. Below are the details on these changes and how they affect you and your institution.

July Regulatory Compliance Updates for Banks and Credit Unions

Biden-Harris Administration Finalizes Rule to Increase Compensation Thresholds for Overtime Eligibility

The Biden-Harris administration today announced a final rule that expands overtime protections for millions of the nation’s lower-paid salaried workers by increasing the salary thresholds required to exempt a salaried bona fide executive, administrative or professional employee from federal overtime pay requirements.

Effective July 1, 2024, the salary threshold will increase to the equivalent of an annual salary of $43,888 and increase to $58,656 on Jan. 1, 2025. The July 1 increase updates the present annual salary threshold of $35,568 based on the methodology used by the prior administration in the 2019 overtime rule update. On Jan. 1, 2025, the rule’s new methodology takes effect, resulting in an additional increase. In addition, the rule will adjust the threshold for highly compensated employees. Starting July 1, 2027, salary thresholds will update every three years, by applying up-to-date wage data to determine new salary levels.

Why Is This Important to Me?

FTC Announces Rule Banning Noncompetes

The Federal Trade Commission (FTC)  issued a final rule to promote competition by banning noncompetes nationwide, protecting the fundamental freedom of workers to change jobs, increasing innovation, and fostering new business formation.

Why Is This Important to Me?

  • The final rule banning noncompetes will likely lead to new business formation, result in higher earnings for workers, and is expected to lower healthcare costs over the next decade. Additionally, the final rule is expected to help drive innovation.

FinCEN Reminds Financial Institutions to Remain Vigilant to Environmental Crimes

FinCEN issued a reminder to financial institutions on Earth Day (04/22) to remain vigilant in identifying and reporting suspicious activity related to environmental crimes. Environmental crimes frequently involve transnational criminal activity related to several of FinCEN’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) National Priorities, including corruption, fraud, human trafficking, and drug trafficking.

Why Is This Important to Me?

  • OnCourse Learning has many different online self-paced courses and webinars that cover topics such as anti-money laundering, anti-terrorism, fraud, bribery, and human trafficking to ensure our clients are educated in these topics.

FinCEN Updates Beneficial Ownership FAQs

FinCEN has updated its Beneficial Ownership FAQs to include new questions and updated information about reporting companies, beneficial ownership through trusts, and access to beneficial ownership information.

Why Is this Important to Me?

  • There have been some updates to Beneficial Ownership for 2024, specifically a final rule implementing the access and safeguard provisions of the Corporate Transparency Act (CTA). OnCourse Learning has multiple online self-paced courses, as well as a webinar detailing this updated rule.

FDIC Requests Comments on Proposed State of Policy on Bank Merger Transactions 

The revised SOP reflects legislative and other developments that have occurred since it was last amended in 2008, including the establishment of the statutory factor regarding the risk to the stability of the United States banking or financial system.  The revised SOP is principles-based; describes the types of applications subject to FDIC approval; addresses each statutory factor separately; and highlights other relevant matters and considerations, such as related statutes pertaining to interstate mergers, and applications from non-banks or banks that are not traditional community banks.  Further, the revised SOP reflects consideration of comment letters received in response to the FDIC’s March 2022 Request for Information and Comment on Rules, Regulations, Guidance, and Statements of Policy Regarding Bank Merger Transactions.

Why Is This Important to Me?

  • Mergers & acquisitions are expected to be a hot topic throughout 2024. The FDIC encourages comments from all interested parties within 60 days of publication in the Federal Register.

FTC Amends Telemarketing Sales Rule

The Federal Trade Commission (“FTC” or “Commission”) adopts amendments to the Telemarketing Sales Rule (“TSR”) that, among other things, require telemarketers and sellers to maintain additional records of their telemarketing transactions, prohibit material misrepresentations and false or misleading statements in business to business (“B2B”) telemarketing calls, and add a new definition for the term “previous donor.” These amendments are necessary to address technological advances and to continue protecting consumers, including small businesses, from deceptive or abusive telemarketing practices.

Why Is This Important to Me?

  • The amendments are effective 05/16/2024. However, compliance with 16 CFR 310.5(a)(2) is not required until 10/15/2024. OnCourse Learning has just released an updated Telemarketing Consumer Fraud and Abuse Prevention Act – E3 course in April 2024.
Rachel Davis - Product Manager at OCL

About the Author

Jeff Kelly

General Manager at OnCourse Learning

As General Manager at OnCourse Learning, Jeff leads the product management and learning development teams, along with solutions architecture and compliance functions. Jeff has worked in the financial services industry for 20 years and keeps up to date on financial industry changes and updates. Jeff obtained his Bachelor’s Degree in Marketing from the University of Wisconsin – Whitewater and his MBA from the University of Wisconsin – Milwaukee. He also served in the U.S. Marine Corps as a non-commissioned officer. His focus is building strong collaborative teams with passion for delivering excellence in outcomes for customers and employees.

Rachel Davis - Product Manager at OCL

About the Author

Jeff Kelly

General Manager at OnCourse Learning

As General Manager at OnCourse Learning, Jeff leads the product management and learning development teams, along with solutions architecture and compliance functions. Jeff has worked in the financial services industry for 20 years and keeps up to date on financial industry changes and updates. Jeff obtained his Bachelor’s Degree in Marketing from the University of Wisconsin – Whitewater and his MBA from the University of Wisconsin – Milwaukee. He also served in the U.S. Marine Corps as a non-commissioned officer. His focus is building strong collaborative teams with passion for delivering excellence in outcomes for customers and employees.

By |2024-05-03T13:13:36-06:00May 3rd, 2024|Financial Services, Resources|Comments Off on Regulatory Compliance Updates for Banks & Credit Unions – April 2024 Recap