All in Regulatory Update

FinCEN Advisory on Updated Deficient Countries

Adam Witmer
BSA, Regulatory Update

On 3/11/21, the Financial Crimes Enforcement Network (FinCEN) issued an advisory to inform financial institutions of updates to the FATF list of jurisdictions with strategic anti-money landing and combating the financing of terrorism and counter-proliferation financing deficiencies.

Remaining on the list are Albania, Barbados, Botswana, Burma (Myanmar), Cambodia, Ghana, Jamaica, Mauritius, Nicaragua, Pakistan, Panama, Syria, Uganda, Yemen, and Zimbabwe. The Bahamas were removed from the list while Burkina Faso, Cayman Islands, Morocco, and Senegal were all added to the list.

CFPB Rescinds Abusiveness Policy Statement from 2020

Adam Witmer
UDAAP, Regulatory Update

On 3/11/21, the CFPB announced that it is rescinding a policy statement that was just over a year old. Specifically, the CFPB has rescinded its January 24, 2020 policy statement titled “Statement of Policy Regarding Prohibition on Abusive Acts or Practices.” In their release, the CFPB explains that they intend to exercise its supervisory and enforcement authority consistent with the full scope of its statutory authority under the Dodd-Frank Act and these changes help to better protect consumers and the marketplace from abusive acts or practices.

FinCEN Guidance on Art Trade

Adam Witmer
BSA, Regulatory Update

On 3/9/21, the Financial Crimes Enforcement Network (FinCEN) issued a notice (FIN-2021-NTC2) to inform financial institutions about (1) the Anti-Money Laundering Act of 2020 (the AML Act)1 efforts related to trade in antiquities and art, (2) select sources of information about existing illicit activity related to antiquities and art, and (3) provide specific instructions for filing Suspicious Activity Reports (SARs) related to trade in antiquities and art. This release encourages financial institutions to continue filing SARs regarding these topics and provides additional guidance.

FATF Guidance on Risk-Based Supervision

Adam Witmer
BSA, Regulatory Update

On 3/4/21, the Financial Action Task Force (FATF) released guidance titled “Guidance on Risk-Based Supervision” to help financial industry supervisors address the full spectrum of risks and focus resources where the risks are highest. In their release, FATF explains that a risk-based approach will make supervisors efforts to detect and prevent the financial flows that fuel crime and terrorism more effective. This is crucial, they explain, because it is better to detect and prevent money laundering and terrorist financing than to prosecute it after a crime has occurred.

OCC Revises SCRA Handbook

Adam Witmer
SCRA, Regulatory Update

On 3/4/21, the Office of the Comptroller of the Currency (OCC) issued a revised “Servicemembers Civil Relief Act” booklet, which is part of their larger Comptroller’s Handbook. This revised booklet provides information and procedures for examiners in connection with the consumer protections that servicemembers are eligible for under the Servicemembers Civil Relief Act (SCRA).

CFPB Proposes to Delay New General QM Rule

Adam Witmer
Regulatory Update, Regulation Z

On 3/3/21, the CFPB announced the release of a proposed rulemaking to delay the recently set mandatory compliance date of the General Qualified Mortgage (QM) final rule from July 1, 2021 to October 1, 2022. The CFPB states they are proposing to extend the compliance date to ensure homeowners struggling with the financial impacts of the COVID-19 pandemic have the options they need.

CFPB Sues Payment Processor

Adam Witmer
Regulatory Update

On 3/3/21, the CFPB announced that they had filed a lawsuit against a payment processor and its founder for knowingly processing payments for companies engaged in internet-based technical-support fraud. The CFPB alleges that between 2016 and 2018, Howard and BrightSpeed knowingly processed payments for client companies that purported to offer technical-support services and products over the internet, but instead tricked consumers, often older Americans, into purchasing expensive and unnecessary antivirus software or services.

Load More