Welcome to the Compliance Cohort. We are a group of compliance professionals working to make compliance easier. Our goal is to take complex compliance concepts and put them in simple terms that apply to the real world. We are glad you have found us and look forward to collaborating in the future.
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All in Compliance Management
In this Compliance Clip (video), Adam discusses the importance of a well designed Compliance Management System (CMS) and explains what the goal should be for a CMS. Maybe even more importantly, Adam explains what he considers a key element needed to be able to have an effective CMS. The video concludes with an explanation about how our premium memberships can assist financial institutions in implementing and managing their Compliance Management Systems.
In this Compliance Clip (video), Adam provides a quick executive summary of the CFPB’s recent proposal to amend Regulation B, which will require small business data collection and reporting - much like HMDA - for many financial institutions. As this rule will have a significant impact on financial institutions, it is important to understand the direction this proposal is headed in regards to who might be required to report and what this rule is going to require. This video is a MUST WATCH for all compliance officer, senior lenders, and those who may be required to implement this new rule. (NOTE: Feel free to share this video with those in your team who may need to have this information as this video is free to all.)
On 9/23/21, the Consumer Financial Protection Bureau (CFPB) released its first in-depth report analyzing complaint submission patterns by U.S. Census tract. The report, “Consumer complaints throughout the credit life cycle, by demographic characteristics,” finds that the complaints from wealthier communities and communities with higher percentages of white, non-Hispanic residents were more frequently about loan origination and performing servicing, while the complaints from communities of color and lower income communities were more frequently about credit reporting, identity theft, and delinquent servicing.
On 7/13/21, the joint agencies (Federal Reserve, FDIC, & OCC) announced a request for public comment on proposed guidance designed to help banking organizations manage risks associated with third-party relationships, including relationships with financial technology-focused entities. Comments must be received within 60 days of the proposed guidance's publication in the Federal Register.
In February of 2021, the FFIEC released the second round of what appears to be an overhaul of the BSA/AML Exam Manual. The February 2021 revisions include updates to four sections including and introduction section to the section on assessing compliance with BSA regulatory requirements, and sections on customer identification programs, currency transaction reporting, and transactions of exempt persons.
On 2/2/2021, the NCUA announced that they will be hosting a webinar on Thursday, February 11, 2021, that will provide participants with an update on Chairman Todd M. Harper’s priorities, the agency’s supervisory activities, and recently issued guidance and regulations, among other topics. As some may recall, Chairman Harper was announced on 1/25/2021 as President Biden’s designated Chairman of the NCUA Board. Harper is also the NCUA director who, in October of 2020, requested comments regarding the NCUA’s approach to supervising institutions for regulatory compliance. In the announcement about the upcoming webinar, Mr. Harper is quoted as saying that he will share his “regulatory philosophy” with stakeholders during this webinar. Credit union compliance professionals may want to consider taking part in this webinar as it may shed some light on the direction of regulatory compliance supervision and enforcement from the NCUA going forward.
On 1/25/2021, the NCUA announced that President Biden had designated National Credit Union Administration Board Member Todd M. Harper as the twelfth Chairman of the NCUA Board. Harper succeeds Rodney Hood, who was designated Board Chairman in April 2019. Hood continues to serve as an NCUA Board Member. Harper was nominated to the NCUA Board on Feb. 6, 2019. Following Senate confirmation, he took office as an NCUA Board Member on April 8, 2019. As some might recall, it was Mr. Harper who, in October of 2020, requested comments regarding the NCUA’s approach to supervising institutions for regulatory compliance.
On 1/19/2021, the joint agencies (CFPB, Federal Reserve, FDIC, OCC, and NCUA) a final rule regarding the agencies use of supervisory guidance for its supervised institutions. The rule codifies the statement, with amendments, that the joint agencies issued in September 2018, which clarified the differences between regulations and supervisory guidance.
On 11/9/2020, the OCC published their fall 2020 edition of the publication, Semiannual Risk Perspective. In their release, the OCC explains that Banks remain in strong financial condition but profitability is stressed due to low interest rates and increasing levels of provisions for problem loans. As would be expected, the OCC identified credit, strategic, operational, and compliance risks as key themes for financial institutions.
