All in Regulatory Update

FinCEN Notice on Environmental Crimes

Adam Witmer
BSA, Regulatory Update

On 11/18/21, the Financial Crimes Enforcement Network (FinCEN) issued a Notice to call attention to an upward trend in environmental crimes and associated illicit financial activity. In the Notice, FinCEN explained that it is highlighting this trend because of: (1) its strong association with corruption and transnational criminal organizations, (2) a need to enhance reporting and analysis of related illicit financial flows; and (3) environmental crimes’ contribution to the climate crisis, including threatening ecosystems, decreasing biodiversity, and increasing carbon dioxide in the atmosphere. FinCEN’s Notice provides financial institutions with specific suspicious activity report (SAR) filing instructions and highlights the likelihood of illicit financial activity related to several types of environmental crimes.

Agencies Issue Rule on Incident Notification

Adam Witmer
Regulatory Update

On 11/18/21, the joint agencies issued a final rule to improve the sharing of information about cyber incidents that may affect the U.S. banking system. According to the FDIC’s press release, the final rule requires a banking organization to notify its primary federal regulator of any significant computer-security incident as soon as possible and no later than 36 hours after the banking organization determines that a cyber incident has occurred. Notification will be required for incidents that have materially affected—or are reasonably likely to materially affect—the viability of a banking organization’s operations, its ability to deliver banking products and services, or the stability of the financial sector.

CFPB Data Spotlight on SARs on Elder Financial Exploitation

Adam Witmer
BSA, Regulatory Update

In mid-November of 2021, the CFPB released a “data spotlight” on suspicious activity reports on elder financial exploitation. The publication highlights trends relating to SARs filed by financial institutions that relate to elder financial exploitation. In general, the analysis primarily relies on public data for EFE SARs filed between January 2014 and December 2020, available through SAR Stats .

Joint Statement on Mortgage Servicing Rules

Adam Witmer
Regulatory Update, Regulation Z

On 11/10/21, the joint agencies (Federal Reserve, FDIC, CFPB, NCUA, OCC, and state financial regulators) issued a joint statement to communicate to mortgage servicers the agencies’ supervisory and enforcement approach as risks associated with the Coronavirus Disease (COVID-19) pandemic continue to change. In short, the agencies explain that the flexibilities outlined in their prior joint statement issued on April 3, 2020 are no longer necessary, and, therefore, those flexibilities no longer apply.

FinCEN Exchange on SAR Stats

Adam Witmer
BSA, Regulatory Update

On 11/9/21, the Financial Crimes Enforcement Network (FinCEN) announced that they convened a virtual FinCEN Exchange with members of the financial industry and law enforcement to discuss FinCEN’s analysis of suspicious activity reporting (SAR) with a transactional nexus to Alabama, Florida, Georgia, Mississippi, and South Carolina. Topics of discussion in the exchange included an analysis of certain Bank Secrecy Act (BSA) filing statistics for SARs and an analysis of SAR filings related to recent FinCEN advisories.

CFPB Guides for Consumers on Elder Financial Abuse

Adam Witmer
Regulatory Update

In early November, 2021, the Consumer Financial Protection Bureau (CFPB) released two guides to assist families and friend of people living in nursing homes and assisted living communities who may be subject to elder financial abuse. While these guides weren’t designed specifically for financial institutions, they could be a great resource for financial institutions when a customer suspects a family member or friend is subject to elder financial abuse.

CFPB Credit Report Findings for Minorities

Adam Witmer
Regulatory Update

On 11/2/2021, the CFPB released the statement, CFPB Finds Credit Report Disputes Far More Common in Majority Black and Hispanic Neighborhoods. In their release, the CFPB explains that consumers in majority Black and Hispanic neighborhoods, as well as younger consumers and those with low credit scores, are far more likely to have disputes appear on their credit reports. According to the CFPB, the new research is a part of a series of reports focusing on trends in the consumer financial marketplace, and uses data on auto loan, student loan, and credit card accounts opened between 2012 and 2019.

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