All in Regulatory Update

FRB Issues Instructions Regarding the Climate Scenario Analysis Exercise

Adam Witmer
Regulatory Update

On January 17, 2023, the Federal Reserve Board provided additional details on how its pilot climate scenario analysis exercise will be conducted and the information on risk management practices that will be gathered over the course of the exercise. In a previous blog, we wrote about the Board announcing that it will conduct a pilot climate scenario analysis exercise designed to enhance the ability of supervisors and firms to measure and manage climate-related financial risks.

FinCEN Issues Alert on Human Smuggling Along the US Southwest Border

Adam Witmer
Regulatory Update, BSA

On January 13, 2023, FinCEN issued an alert which aims to better aid financial institutions in the detection of financial activity related to human smuggling along the southwest border of the United States. The alert provides trends and typologies specifically related to human smuggling occurring along the SW border. It also provides red flag indicators to help financial institutions better identify transactions potentially related to human smuggling and reminds financial institutions of their Bank Secrecy Act (BSA) reporting obligations.

WealthPress Settles with FTC for Violating the Notice of Penalty Offenses

Adam Witmer
Regulatory Update

On January 13, 2023, the FTC announced that investment advice company WealthPress has agreed to a proposed court order that would require it to refund more than $1.2 million to consumers and pay a $500,000 civil penalty for deceiving consumers with outlandish and false claims about their services. This case mark’s the first time that FTC has collected civil penalties against a company that received the Notice of Penalty Offenses regarding money-making opportunities and the first civil penalties for violations of the Restore Online Shoppers’ Confidence Act. (ROSCA).

FTC Proposes Rule to Prohibit Noncompete Clauses

Adam Witmer
Regulatory Update

On January 5, 2023, the FTC proposed a new rule that would ban employers from including noncompete clauses on their workers contracts. According to the FTC, a noncompete requirement is a widespread and often exploitative practice that suppresses wages, hampers innovation, and blocks entrepreneurs from starting new businesses. The agency estimates that the new proposed rule could increase wages by nearly $300 billion per year and expand career opportunities for about 30 million Americans.

OCC’s 2022 Annual Report

Adam Witmer
Regulatory Update

On January 5, 2023,, the OCC issued its annual report to Congress which provides an overview of the condition of the federal banking system. The annual report can be beneficial to compliance professionals as it discusses the OCC's strategic priorities and details agency regulatory and policy initiatives.

Escrow Exemption Threshold for 2023

Adam Witmer
Regulatory Update, Regulation Z

On December 27, 2022, the CFPB announced the annual adjustment to the asset size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan under Regulation Z. These changes reflect updates to the exemption from TILA’s escrow requirement of creditors that, together with affiliates that regularly extended covered transactions secured by first liens, had total assets of less than $2 billion (adjusted annually for inflation) and the exemption the Bureau added, by implementing section 108 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), for certain insured depository institutions and insured credit unions with assets of $10 billion or less (adjusted annually for inflation).

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