All in Regulatory Update

IRS Warns of COVID-19 Scams

Adam Witmer
Regulatory Update

On April 2, 2020 the IRS urged taxpayers to be on the lookout for a surge of calls and email phishing attempts about the Coronavirus, or COVID-19. These contacts can lead to tax-related fraud and identity theft. The IRS explains that taxpayers should watch not only for emails but text messages, websites and social media attempts that request money or personal information.

SBA Issues Interim Final Rule for Paycheck Protection Program

Adam Witmer
Regulatory Update

The Small Business Administration issued an interim final rule announcing the implementation of sections 1102 and 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act). Section 1102 of the Act to temporarily add a new product, titled the “Paycheck Protection Program,” to the U.S. Small Business Administration’s (SBA’s) 7(a) Loan Program. Section 1106 of the Act provides for forgiveness of up to the full principal amount of qualifying loans guaranteed under the Paycheck Protection Program. The Paycheck Protection Program and loan forgiveness are intended to provide economic relief to small businesses nationwide adversely impacted under the Coronavirus Disease 2019 (COVID-19) Emergency Declaration (COVID-19 Emergency Declaration) issued by President Trump on March 13, 2020.

Reg D Excessive Transaction Monitoring

Reg D Excessive Transaction Monitoring

Adam Witmer
Regulatory Update, Regulation D

In this Compliance Clip (video), Adam answers a question many bankers have been asking: With COVID-19, do we still have to comply with the excessive transaction monitoring requirements of Regulation D? This video revisits the rules of Regulation D and reiterates what must be done for monitoring excessive transactions on savings accounts.

Federal Reserve Guidance for Regulation D

Adam Witmer
Regulation D, Regulatory Update

The Federal Reserve recently issued a series of FAQs regarding their announcement on March 15, 2020 of the elimination of reserve requirements. This announcement has resulted in many questions regarding the transaction restrictions on savings accounts under Regulation D. Specifically, many banks are seeing an increase of restricted transactions on Savings accounts due to customers following stay-at-home orders. The question bankers often have is this: Do we still need to follow Regulation D’s restrictions on Savings accounts, or can we allow customers to exceed those restrictions?

Fortunately, the Federal Reserve has provided guidance to financial institutions, which many comes down to this: the restrictions are still in place, but financial institutions can convert applicable accounts to transaction accounts.

CFPB Guidance on Credit Reporting during COVID-19 Pandemic

Adam Witmer
FCRA, Regulatory Update

On April 1, 2020, the CFPB released a policy statement outlining the responsibility of credit reporting companies and furnishers during the COVID-19 pandemic. In response to the pandemic, many lenders are being flexible when it comes to consumers’ making payments. As many lenders are now working to offer struggling borrowers payment accommodations, Congress last week passed the CARES Act which requires lenders to report to credit bureaus that consumers are current on their loans if consumers have sought relief from their lenders due to the pandemic. The Bureau’s statement informs lenders they must comply with the CARES Act and also encourages lenders to continue to voluntarily provide payment relief to consumers and to report accurate information to credit bureaus relating to this relief.

FATF Report on US Progress in Strengthening AML Measures

Adam Witmer
BSA, Regulatory Update

On March 31, 2020, the Financial Action Task Force (FATF) released a report regarding the measures taken by the United States to strengthen their money laundering framework. In their report, FATF found that the United States has been in an enhanced follow-up process following the adoption of its mutual evaluation in 2016, after the 2016 FATF evaluation. In line with the FATF Procedures for mutual evaluations, the country has reported back to the FATF on the actions it has taken since then.

CFPB Settles with Short-Term Lender for UDAAP Violations

Adam Witmer
Regulatory Update, UDAAP

On April 1, 2020, the CFPB announced a settlement with Cottonwood Financial, Ltd., which does business under the name Cash Store, operating in several states and based in Texas. The CFPB found that in the course of marketing, servicing, and collecting on high-interest payday, auto-title, and unsecured consumer-installment loans Cash Store violated several consumer protection laws including the Consumer Financial Protection Act (CFPA), Fair Credit Reporting Act (FCRA), and Truth in Lending Act (TILA). The consent order includes $1.3 million in monetary restitutions and fines.

Load More