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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 broker or dealer with the SEC under the 1934 Act.


Office of Foreign Assets Control (OFAC)

OFAC publishes a new license that may diminish certain prohibitions of the Kingpin Act

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) published Kingpin Act General License 4C to replace General License 4B. This license authorizes certain transactions and activities that would, under other conditions, be prohibited for being non-compliant with the Kingpin Act.


Federal Deposit Insurance Corporation (FDIC)

New banks and borrowers survey released by the FDIC

The Federal Deposit Insurance Corporation (FDIC), in conjunction with the U.S. Census Bureau began a web-based survey of 2,000 randomly selected FDIC-insured banks. The survey is intended to gather data and information that is representative of the characteristics of banks and small business borrowers, the types of credit usually offered to small businesses, and the importance of commercial lending for banks of various sizes and business models. The survey also hopes to collect data on banks in urban and rural communities. 


Office of the Comptroller of the Currency (OCC)

New enforcement actions

The Office of the Comptroller of the Currency (OCC) released new enforcement actions taken against national banks, federal savings associations, and individuals which are currently, or were formerly affiliated with national banks and federal savings associations.

All Cease and Desist Orders, Civil Money Penalty Orders, and Removal/Prohibition Orders should be issued with the permission of the parties, unless otherwise designated as a Decision and Order issued by the Comptroller of the Currency.

New loan to deposit ratios released to determine compliance with the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994

The OCC, along with the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation issued the host state loan-to-deposit ratios that they will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These ratios will replace last year’s ratios, which were released on June 29, 2015.

Section 109 prohibits a bank from establishing or acquiring any branches outside of its home state for the primary purpose of deposit production. Section 109 also prohibits branches of banks controlled by out-of-state bank holding companies from operating primarily for the purpose of deposit production.

Section 109 provides a technique for testing compliance with the statutory requirements. The first step in the process involves a loan-to-deposit ratio test that compares a bank's statewide loan-to-deposit ratio to the host state loan-to-deposit ratio for banks in a particular state.

There is a second step, which is conducted only if a bank's statewide loan-to-deposit ratio is less than one-half of the published ratio for that state or if data are not available at the bank to conduct the first step. The second step requires the appropriate agency to determine whether the bank is reasonably helping to meet the credit needs of the communities served by the bank's interstate branches.

If a bank fails both steps, it is then considered to be in violation of section 109 and is subject to sanctions by the appropriate agency.

The updated host state loan-to-deposit ratios can be found here:


Securities and Exchange Commission (SEC)

New amendments proposed to eliminate archaic or outdated legislation

The Securities and Exchange Commission (SEC) voted to propose new amendments aimed at eliminating outdated or redundant provisions. These amendments have been designed with the intention of better informing the commission’s standing actions to enhance disclosure. According to SEC Chair Mary Jo White, “The proposed amendments address outdated and redundant disclosure requirements while continuing to require companies to provide investors with what they need to make informed decisions.”

SEC voted to propose new rules that would require unprecedented disclosure from broker-dealers regarding the handling of institutional orders to customers. The proposed rules, if enacted, would expand that information included in existing retail order disclosures.


Consumer Financial Protection Bureau (CFPB)

New amendment proposed for Regulation P

The Consumer Financial Protection Bureau proposed an amendment to Regulation P under the Gramm-Leach-Bliley Act (GLBA) that would implement the changes made by the Fixing America’s Surface Transportation Act. The FAST Act states that financial institutions which meet certain criteria may be exempt from the GLBA requirement to provide customers with annual privacy notices.




Department of Justice

District attorney seeks recovery for more than $1 billion in apparently laundered assets

Attorney General Loretta E. Lynch announced that civil forfeiture complaints have been filed seeking the forfeiture and recovery of more than $1 billion in assets associated with an international conspiracy to launder funds misappropriated from a Malaysian sovereign wealth fund. This announcement marks the largest single action ever brought under the Kleptocracy Asset Recovery Initiative.