All in Regulatory Update

FTC Sues Walmart for Money Transfer Fraud

Paula Parras
Regulatory Update, BSA

On June 28, 2022, the FTC sued Walmart for allowing its money transfer services to be used by fraudsters, who swindled consumers out of hundreds of millions of dollars. In its lawsuit, the FTC alleges that the company turned a blind eye while scammers took advantage of its failure to properly secure the money transfer services offered at Walmart stores. The FTC is asking the court to order Walmart to return money to consumers and to impose civil penalties for Walmart’s violations.

OCC's Semiannual Risk Report

Adam Witmer
Regulatory Update

On June 23, 2022, the OCC issued the Semiannual Risk Perspective for Spring 2022 that details the key issues facing the federal banking system. The report, which covers risks facing national banks, federal savings associations, and federal branches and agencies, presents information in five main areas - the operating environment, bank performance, a special section on climate-related topics in emerging risks, trends in key risks, and supervisory actions.

CFPB Issues FCRA and Regulation V Human Trafficking Final Rule

Adam Witmer
Regulatory Update, FCRA

On June 23, 2022, the CFPB issued a final rule to help survivors avoid some of the financial consequences of human trafficking. Through the final rule, the CFPB has established a method for survivors of trafficking to submit documentation to credit reporting companies that identifies any adverse item of information that resulted from human trafficking. The rule prohibits credit reporting companies from providing a report containing the adverse items of information.

CFPB to Review Credit Card Company Penalty Policies

Adam Witmer
Regulatory Update

On June 22, 2022, the CFPB announced that it is taking the first step toward addressing credit card company penalty policies costing consumers $12 billion each year, starting by looking at excessive late fees. The CFPB has published an Advance Notice of Proposed Rulemaking published where it asks for information on the Federal Reserve Board of Governors’ 2010 immunity provision for excessive late fees that allows credit card companies to escape enforcement scrutiny.

FinCEN Issues Statement on BSA Due Diligence for Independent ATM Owners/Operators

Adam Witmer
Regulatory Update, BSA

On June 22, 2022, FinCEN issued a statement to provide clarity to banks on how to apply a risk-based approach to conducting customer due diligence (CDD) on independent Automated Teller Machine (ATM) owners or operators, consistent with the requirements set out in FinCEN’s 2016 CDD Rule. Some independent ATM owners and operators have reported difficulty in obtaining and maintaining access to banking services, which jeopardizes the important financial services they provide, including to persons in underserved markets.

CFPB Measures Impact of Overdraft Programs to Consumers

Adam Witmer
Regulatory Update

On June 16, 2022, the CFPB released an article focusing on the agency’s efforts to collect key metrics from some supervised institutions regarding the consumer impact of their overdraft and non-sufficient fund (NSF) practices. In early December of 2021, we wrote an article about the CFPB’s research on banks’ dependence on overdraft fees. Since then, the Bureau has been actively conducting close supervision to financial institutions with high shares of frequent overdrafters or with higher average fee burden for overdrafts.

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