All in Regulatory Update

OCC’s Fall 2023 Semiannual Risk Perspective

Adam Witmer
Regulatory Update

On December 7, 2023, the OCC released the Fall 2023 edition of its publication Semiannual Risk Perspective. According to the report, economic growth remained solid in the first half of 2023 despite higher interest rates and profitability for the federal banking system also improved even as banks continued to navigate a higher interest rate environment, uncertain economic climate, and fallout from the failure of three regional banks in the spring.

OCC’s Guidance on ‘Buy Now, Pay Later’ Lending

Adam Witmer
Regulatory Update

On December 6, 2023, the OCC issued guidance to national banks and federal savings associations to address the risks associated with “buy now, pay later” lending. The guidance focuses on the risk management of buy now, pay later (BNPL) loans and  notes that banks should maintain underwriting, repayment terms, pricing, and safeguards that minimize adverse customer outcomes. Banks also should ensure that marketing materials and disclosures are clear and conspicuous.

OCC’s Acting Deputy Comptroller Testifies on Financial Technology

Adam Witmer
Regulatory Update

On December 5, 2023, OCC’s Deputy Comptroller for Compliance Policy and Acting Deputy Comptroller for the Office of Financial Technology Donna Murphy today testified on the activities and initiatives of the OCC Office of Financial Technology before the Subcommittee on Digital Assets, Financial Technology and Inclusion, Committee on Financial Services of the U.S. House of Representatives. Ms. Murphy spoke about the OCC's role in monitoring and regulating banks' use of new and emerging technologies.

FDIC Updates Consumer Compliance Exam Manual

Adam Witmer
Regulatory Update

On November 30, 2023, the FDIC updated sections of the Consumer Compliance Examination Manual. The Consumer Compliance Examination Manual is a primary resource and reference tool for FDIC compliance examination staff when conducting Consumer Compliance and CRA examinations. It incorporates examination policies, procedures, and guidance and is available on the FDIC website as a resource for FDIC staff, bankers, and other members of the public.

FinCEN Extends BOI Reporting Deadline

Adam Witmer
Regulatory Update, BSA

On November 29, 2023, FinCEN issued a final rule that extends the deadline for certain reporting companies to file their initial beneficial ownership information (BOI) reports with FinCEN. Through the final rule, reporting companies created or registered in 2024 will now have 90 calendar days from the date of receiving actual or public notice of their creation or registration becoming effective to file their initial reports.

CFPB Takes Action Against Bank of America for Reporting False Mortgage Data

Adam Witmer
Regulatory Update, HMDA

On November 28, 2023, the CFPB ordered Bank of America to pay a $12 million penalty for submitting false mortgage lending information to the federal government under a long-standing federal law. The CFPB found that hundreds of Bank of America loan officers failed to ask applicants certain demographic questions that are required under federal law, and then falsely reported that the applicants had declined to answer. 

FinCEN Joins International Task Force to Disrupt Financial Flows to Hamas

Adam Witmer
Regulatory Update, BSA

On November 27, 2023, FinCEN and twelve other financial intelligence units (FIUs) issued a public statement recognizing the formation of a task force of like-minded FIUs who aim to strengthen efforts to disrupt international financial flows to Hamas and other terrorist organizations. Counter Terrorist Financing Taskforce – Israel (CTFTI) was established immediately following the brutal terror attacks by Hamas against Israel on October 7, 2023.

FinCEN Issues Alert on COVID-19 Employee Retention Credit Fraud

Adam Witmer
Regulatory Update, BSA

On November 22, 2023, FinCEN, in close coordination with the Internal Revenue Service Criminal Investigation (CI), issued an alert to financial institutions on fraud schemes related to the COVID-19 Employee Retention Credit (ERC). The alert provides an overview of typologies associated with ERC fraud and scams, highlights select red flags to assist financial institutions in identifying and reporting suspicious activity and reminds financial institutions of their reporting requirements under the BSA.

CFPB Fines Toyota Motor Credit for Illegal Lending and Credit Reporting Misconduct

Adam Witmer
Regulatory Update, UDAAP

On November 20, 2023, the CFPB ordered Toyota Motor Credit Corporation to pay $60 million in consumer redress and penalties for operating an illegal scheme to prevent borrowers from cancelling product bundles that increased their monthly car loan payments. The CFPB alleges that the company withheld refunds or refunded incorrect amounts on the bundled products and knowingly tarnished consumers’ credit reports with false information.

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