All in Regulatory Update

FinCEN Statement on BSA Enforcement

Adam Witmer
BSA, Regulatory Update

On 8/18/2020, the Financial Crimes Enforcement Network (FinCEN) issued a statement that explains its approach to enforcing BSA/AML rules and regulations. This statement corresponds with the interagency statement issued on 8/13/2020 by the FDIC, Federal Reserve, OCC, and NCUA. In their release, FinCEN explains that this statement is intended to provide clarity and transparency to its approach when contemplating compliance or enforcement actions against covered financial institutions that violate the Bank Secrecy Act. The statement outlines administrative actions available to FinCEN, provides an overview of the information FinCEN analyzes in order to determine the appropriate outcome of BSA violations, and encourages financial institutions to voluntarily and promptly report violations as well as candidly and completely cooperate with any investigation.

Interagency Statement on BSA Enforcement

Adam Witmer
BSA, Regulatory Update

On 8/13/2020, the joint regulators (FDIC, Federal Reserve, OCC, and NCUA) issued an updated joint statement on enforcement of BSA/AML requirements. As explained in the FDIC’s release (FIL-76-2020), this statement - which runs about 13 pages long - does not create new expectations or standards, but describes circumstances in which an agency will issue a mandatory cease and desist order to address noncompliance with BSA/AML requirements.

New HMDA FAQs

Adam Witmer
HMDA, Regulatory Update

On July 28, 2020, the CFPB released two new FAQs relating to the Home Mortgage disclosure Act (HMDA). This update is the second update to the CFPB’s HMDA FAQs in 2020, and those institutions still subject to HMDA reporting should review these new FAQs for compliance in your organization.

FTC Complaint Against Cash Advance Provider

Adam Witmer
Regulatory Update

On 8/3/2020, the Federal Trade Commission (FTC) file a law suit against Yellowstone Capital and associated employees. The complaint alleges that the cash advance servicer “ used deception to lure small business customers, then regularly withdrew money from their accounts without consent even after the customers had repaid the money they owed.”

New FinCEN FAQs on CDD

Adam Witmer
BSA, Regulatory Update

On 8/3/2020, the Financial Crimes Enforcement Network (FinCEN) issued responses to three frequently asked questions (FAQs) regarding customer due diligence requirements for covered financial institutions. These FAQs are in addition to those published on July 19, 2016 and April 3, 2018. The first FAQ discusses the collection of customer information for CDD, while the second question focuses on establishing a customer risk profile. The third question relates to performing ongoing monitoring of the customer relationship.

FFIEC Statement on Loan Accommodations

Adam Witmer
Regulatory Update

On 8/3/2020, the Federal Financial Institutions Examination Council (FFIEC) issued a joint statement to provide prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers as loans near the end of initial loan accommodation periods applicable during the pandemic. The statement explains that the guidance provided should be applied to both commercial and retail loan accommodations and should be tailored to a financial institution’s size, complexity, and loan portfolio risk profile.

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