Financial Crimes Enforcement Network (FinCEN)

Beneficial Ownership Requirements for Legal Entity Customers of Certain Financial Products and Services with Automatic Rollovers or Renewals

The Financial Crimes Enforcement Network (FinCEN) issued a ruling to provide limited exceptive relief to covered financial institutions from the requirements of the Beneficial Ownership Requirements for Legal Entity Customers aka the Beneficial Ownership Rule. It will be a 90-day period that covers some financial products and services, like a CD or a loan, that were created before the rule’s applicability date, May 11, 2018.

This exception begins, retroactively, on May 11, 2018, and will expire on August 9, 2018.


The Federal Reserve

Federal Reserve Board issues a Report on the Economic Well-Being of U.S. Households

The Federal Reserve Board's latest Report on the Economic Well-Being of U.S. Households finds that economic well-being has improved 10 percentage points from its first survey in 2013. 

The Fed reports that 74 percent of adults surveyed said they were doing OK financially in 2017.
However, there are still noticeable differences in economic well-being across race, ethnicity, education groups, and locations.

Many Americans are still struggling to repay college loans, small emergency expenses, and manage retirement savings.


Other Regulatory Bodies

Federal Financial Institutions Examination Council

FFIEC Issues New Customer Due Diligence and Beneficial Ownership Examination Procedures

The Federal Financial Institutions Examination Council (FFIEC) issued new examination procedures on the final rule, “Customer Due Diligence Requirements for Financial Institutions,” issued by the Financial Crimes Enforcement Network (FinCEN) on May 11, 2016.

The new examination procedures replace those in the current “Customer Due Diligence — Overview and Examination Procedures” section of the FFIEC’s Bank Secrecy Act/Anti-Money Laundering Examination Manual. In addition, a new overview and examination procedures were developed for the beneficial ownership requirements for legal entity customers.

These examination procedures apply to banks, savings and loan associations, savings associations, credit unions, and branches, agencies, and representative offices of foreign banks.


Federal Trade Commission

FTC Obtains Preliminary Injunction Against Mortgage Relief Operation That Deceived Homeowners

A mortgage relief operation has been charged by the Federal Trade Commission (FTC) with deceiving homeowners by claiming to make their mortgages more affordable and prevent foreclosure.

Those in the operation claimed a 99 percent success rate and promised results no matter a homeowner’s predicament. Moreover, they falsely stated they worked with certain lenders and government mortgage assistance programs.

A federal court froze the mortgage relief operation’s assets and temporarily halted their scheme at the request of the FTC.


U.S. Commodity Futures Trading Commission

CTFC Staff Issues Advisory for Virtual Currency Products

Exchanges and clearinghouses registered with the U.S. Commodity Futures Trading Commission (CFTC) issued an advisory on listing virtual currency derivative products by its Division of Market Oversight and its Division of Clearing and Risk.

The advisory gives guidance on improvements when listing derivative contracts based on virtual currencies. Furthermore, it clarifies the CTFC’s expectations in its review of new virtual currency derivatives.