New HMDA FAQs

Adam Witmer
HMDA, Regulatory Update

On July 28, 2020, the CFPB released two new FAQs relating to the Home Mortgage disclosure Act (HMDA). This update is the second update to the CFPB’s HMDA FAQs in 2020, and those institutions still subject to HMDA reporting should review these new FAQs for compliance in your organization.

FTC Complaint Against Cash Advance Provider

Adam Witmer
Regulatory Update

On 8/3/2020, the Federal Trade Commission (FTC) file a law suit against Yellowstone Capital and associated employees. The complaint alleges that the cash advance servicer “ used deception to lure small business customers, then regularly withdrew money from their accounts without consent even after the customers had repaid the money they owed.”

New FinCEN FAQs on CDD

Adam Witmer
BSA, Regulatory Update

On 8/3/2020, the Financial Crimes Enforcement Network (FinCEN) issued responses to three frequently asked questions (FAQs) regarding customer due diligence requirements for covered financial institutions. These FAQs are in addition to those published on July 19, 2016 and April 3, 2018. The first FAQ discusses the collection of customer information for CDD, while the second question focuses on establishing a customer risk profile. The third question relates to performing ongoing monitoring of the customer relationship.

FFIEC Statement on Loan Accommodations

Adam Witmer
Regulatory Update

On 8/3/2020, the Federal Financial Institutions Examination Council (FFIEC) issued a joint statement to provide prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers as loans near the end of initial loan accommodation periods applicable during the pandemic. The statement explains that the guidance provided should be applied to both commercial and retail loan accommodations and should be tailored to a financial institution’s size, complexity, and loan portfolio risk profile.

FATF Webinars on Money Laundering

Adam Witmer
Regulatory Update

In late July, the Financial Action Task Force (FATF) held two webinars on money laundering and terrorist financing. The first webinar was held on July 28, 2020 on Money Laundering and the Illegal Wildlife Trade, while the second webinar was held on July 31, 2020 on Money Laundering and Terrorist Financing related to COVID-19.

FinCEN CyberCrime Advisory

Adam Witmer
BSA, Regulatory Update

On 7/30/2020, the Financial Crimes Enforcement Network (FinCEN) issued an advisory to alert financial institutions to potential indicators of cybercrime and cyber-enabled crime observed during the COVID-19 pandemic. This advisory provides a number of red flags for financial institutions to look for and includes SAR filing instructions of including the key term “COVID19-CYBER FIN-2020-A005”. Institutions filing SARs should also select SAR field 42 (Cyber Event) for each applicable filing.

VIDEO: Disparate Impact

VIDEO: Disparate Impact

Adam Witmer
Fair Lending

In this video, Adam talks about the third type of discrimination recognized by the courts: disparate impact.  He explains the main source of this type of discrimination and gives a few examples of what to look for.

CFPB Seeking Comments on Preventing Discrimination

Adam Witmer
Fair Lending, Regulatory Update

In July of 2020, the CFPB issued a Request for Informatino on the Equal Credit Opportunity Act and Regulation B which is seeking comments and information to identify opportunities to prevent credit discrimination, encourage responsible innovation, promote fair, equitable, and nondiscriminatory access to credit, address potential regulatory uncertainty, and develop viable solutions to regulatory compliance challenges under the Equal Credit Opportunity Act (ECOA) and Regulation B. Comments are due 60 days after publication in the Federal Register.

ICE Issue COVID-19 Fraud Warning

Adam Witmer
Regulatory Update

On 7/28/2020, the U.S. Department of Immigration and Customs Enforcement (ICE) issued a news release warning the public to remain vigilant about COVID fraud. In their release, ICE states that in “the first 100 days of Operation Stolen Promise [ICE had] more than 500 criminal investigations, over 900 seized shipments and more than $7 million in illicit proceeds seized.”

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