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Our hard working and very capable compliance specialists are always monitoring the various regulatory agencies to keep you up to date and informed.

  • Compliance Alert - September 2016
  • Compliance Alert - August 2016
  • Compliance Alert - July 2016
  • Compliance Alert - March 2016
  • Compliance Alert - February 2016
  • Compliance Alert - January 2016
  • Compliance Alert - December 2015
  • Compliance Alert - November 2015

CFPB

Consumer Financial Protection Bureau (CFPB)

Several banking trade groups petition for more time to comply with Military Lending Act (MLA) final rule

The Department of Defense’s (DoD) Military Lending Act (MLA) final rule took effect October 1, 2015. Testing of banks’ compliance with this rule was scheduled for early next month. However, several banking trade groups including the American Banker Association are seeking a six-month extension, until March 3, 2017, before federal bank regulators begin testing compliance with this new rule. Late issuance of DoD interpretive guidance is cited as the primary reason for this request. Consequently, the industry contends more time is needed to establish the necessary controls to ensure effective compliance. The MLA final rule addresses how banks manage active service duty members’ accounts across a host of products including select closed end loans, payday loans, credit cards, and some private and federal student loans.

One of the Read More

CFPB

Consumer Financial Protection Bureau (CFPB)

Announces New Rule

According to the CFPB website “the new rule is amending certain mortgage servicing rules that were issued by the bureau in 2013. This new rule will serve to clarify, revise or amend existing legislation regarding force-placed insurance notices, policies and procedures, early intervention, and loss mitigation requirements under Regulation X. The rule addresses proper compliance regarding certain servicing requirements when a person is a potential or confirmed successor in interest, a debtor in bankruptcy, or sends a cease communication request under the Fair Debt Collection Practices Act. “

The new rule is also supposed to make technical corrections to several provisions of Regulations X and Z. The Bureau is issuing along with this final rule, an interpretive rule under the Fair Debt Collection Practices Act concerning servicers’ compliance with certain mortgage servicing rules.

CFPB Uses Testers for the First Time to Deter Discriminatory Read More

Financial Crimes Enforcement Network (FinCEN)

FinCEN Issued an Interim Final Rule

FinCEN Issued an Interim Final Rule which requires inflation adjustments for civil monetary penalties. In accordance with the foundations outlined within the Bipartisan Budget Act of 2015.

FinCEN proposes to amend BSA definitions to include Funding Portals

FinCEN proposes to amend the Bank Secrecy Act’s (BSA) definition of Broker-Dealer in securities to include Funding Portals. This change would make certain that Funding Portals implement policies and procedures which would more easily achieve compliance with BSA requirements, including the filing of suspicious activity reports, currently applicable to brokers or dealers in securities. This proposal does not affect other activities, beyond securities, conducted by these businesses.

The current BSA regulatory definition of broker-dealer in securities does not include Funding Portals. Currently, the BSA definition of broker-dealers in securities includes only those who are registered, or required to be registered, as a

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Financial Crimes Enforcement Network (FinCEN)

FinCEN proposes revisions to Currency Transaction Report (CTR).

On February 2 nd , the Financial Crimes Enforcement Network (FinCEN) proposed amendments to the CTR to remedy some of the limitations of the current BCTR. The proposed notice does not propose any new regulatory requirements or changes to the requirements related to actual reporting, but rather seeks input on technical matters designed to improve the layout and reporting of the BCTR.

FinCEN withdraws findings and proposed rulemakings.

On February 19 th , FinCEN announced that it was withdrawing three findings and related proposed rulemakings under Section 311 of the USA PATRIOT Act. FinCEN had determined that the subjects of the rulemakings no longer posed a money laundering threat to the U.S. financial system.

Private bank to pay .5 million for willful AML violations.

Fincen announced the assessment of a million civil money penalty (CMP) against a bank

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Financial Crimes Enforcement Network (FinCEN)

Geographic Targeting Orders issued.

On January 13 th , the Financial Crimes Enforcement Network (FinCEN) issued Geographic Targeting Orders (GTOs) that will temporarily require certain U.S. title insurance companies to identify the natural persons behind companies used to pay “all cash” for high-end residential real estate in Manhattan, New York City as well as in Miami-Dad County, Florida. FinCEN is using its risk-based approach to combat money laundering in the real estate sector. The GTOs are effective from March 1, 2016 through August 27, 2016.

Advisory issued for AML/CFT deficiencies.

On January 19 th , FinCEN issued an advisory on the Financial Action Task Force-(FATF-) identified jurisdictions with Anti-Money Laundering/Counter-Terrorist Financing (AML/CFT) deficiencies. The FATF has called upon its members, including the United States, to impose countermeasures and consider the risks arising from these AML/CFT-deficient jurisdictions. FinCEN, in its advisory, urged financial institutions in the U.S. to

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Financial Crimes Enforcement Network (FinCEN)

FBAR filing postponed.

The Financial Crimes Enforcement Network (FinCEN) has extended the filing deadline for the Report of Foreign Bank and Financial Accounts (FBAR) to April 15, 2017. This extension applies to the reporting of signature authority held during the 2015 calendar year. For all other individuals with an FBAR filing obligation, the filing due date remains June 30, 2016.

Enforcement action leads to $650,000 settlement.

On December 17, 2015, FinCEN announced its settlement with a “card club” gaming establishment, the Oaks Card Club of California. The club admitted to violating the program and reporting requirements of the Bank Secrecy Act (BSA). FinCEN required Oaks to pay a fine of 0,000 for willful violations, including inaccurate and misleading anti-money laundering (AML) policies and reporting requirements.

FinCEN provides documents on Customer Due Diligence (CDD).

On December 23 rd , FinCEN announced the availability of two documents that

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FDIC

Federal Deposit Insurance Corporation (FDIC)

FDIC releases October enforcement actions.

The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in October. The list included 15 orders of administrative enforcement actions taken against banks and individuals. The full list can be found here​ .

Swap margin rule finalized.

The Federal Reserve Board (FRB), the FDIC, the Office of the Comptroller of the Currency (OCC), the Federal Housing Finance Agency (FHFA), and the Farm Credit Administration (FCA) issued a final rule to establish capital and margin requirements for swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants regulated by one of the agencies. For more information, see here​ .

FDIC issues final rule concerning securitization safe harbor.

On November 24 th , the FDIC issued a final rule revising certain provisions of it securitization safe harbor rule, which relates to the treatment of financial

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FDIC

Federal Deposit Insurance Corporation (FDIC)

CRA evaluations released.

On October 2 nd , the FDIC issued its list of state nonmember banks evaluated for compliance with the Community Reinvestment Act, as well as the ratings they received. More information on these can be found here .

Updates made to Money Smart Financial Education Program.

The FDIC announced two new resources tailored to meet the financial education needs of individuals with visual disabilities. The resources give consumers the opportunity to learn how to better manage their resources. For more information, visit the FDIC’s Money Smart page .

Final rule on swap margin requirements issued.

On October 22 nd , the FDIC approved a final rule to established margin requirements for swap not cleared through a clearinghouse. The rule does not apply to swaps of financial institutions with billion or less in total assets that enter into swaps for hedging purposes. More information on the

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