FTC Enforces Deceptively Marketed CBD Products

Adam Witmer
BSA, Regulatory Update

On 12/17/20020, the Federal Trade Commission (FTC) announced the first law enforcement crackdown on deceptive claims in the growing market for cannabidiol (CBD) products. The FTC is taking action against six sellers of CBD-containing products for allegedly making a wide range of scientifically unsupported claims about their ability to treat serious health conditions, including cancer, heart disease, hypertension, Alzheimer’s disease, and others. The FTC is requiring each of the companies, and individuals behind them, to stop making such unsupported health claims immediately, and several will pay monetary judgments to the agency. The orders settling the FTC’s complaints also bar the respondents from similar deceptive advertising in the future, and require that they have scientific evidence to support any health claims they make for CBD and other products.

CRA Small Bank Thresholds Announced by FDIC & Federal Reserve

Adam Witmer
CRA, Regulatory Update

On 12/17/2020, the FDIC and Federal Reserve Board jointly announced the annual adjustment to the asset-size thresholds used to define small bank and intermediate small bank under their Community Reinvestment Act (CRA) regulations. The definitions of small and intermediate small institutions regulated by the FDIC or Federal Reserve will change as follows:

  • “Small bank” means an institution that, as of December 31 of either of the prior two calendar years, had assets of less than $1.322 billion.

  • “Intermediate small bank” means a small institution with assets of at least $330 million as of December 31 of both of the prior two calendar years and less than $1.322 billion as of December 31 of either of the prior two calendar years.

FinCEN Provides Clarification on 314(a) Sharing

Adam Witmer
BSA, Regulatory Update

On 12/10/2020, the Financial Crimes Enforcement Network (FinCEN) announced that Director Ken Blanco had provided guidance regarding 314(a) sharing. This guidance was provided through a speech presented by Director Blanco, a release by FinCEN and an updated Fact Sheet. In their release, FinCEN explains that they are providing three main clarifications as a result of industry feedback.

CFPB Finalizes to QM Rules

Adam Witmer
Regulatory Update, Regulation Z

On 12/10/2020, the CFPB issued two new final rules that update the Qualified Mortgage (QM) rules. Specifically, some changes have been made to the QM definitions in order to transition away from the “Temporary GSE” QM definition which is set to expire in the coming months. As you would expect, this topic will be covered in our upcoming Winter 2021 Quarterly Compliance Update that will be available in our store in early 2021.

CFPB Fall Rulemaking Agenda

Adam Witmer
Regulatory Update

On 12/11/2020, the CFPB issued their Fall 2020 Agenda which lists the regulatory matters the CFPB expects to focus on between November 2020 and November 2021. This twice-a-year publication is part of a larger Unified Agenda of Federal Regulatory and Deregulatory Actions which outlines past and upcoming regulatory changes. This information is helpful for bankers to understand what changes are expected to take place in the future, and this is why we include these updates in our Quarterly Compliance Updates (the next one will be our Winter 2021 Quarterly Compliance Update and will be released in early 2021).

Winter Compliance Training Available Today!

Adam Witmer

If you are still looking to squeeze in compliance training for you or your team before the year ends, our virtual training programs may be a fit for you. Each of our programs are presented in our “virtual classroom” style where we try to bring the seminar to you by showing video of an instructor in front of a slide presentation - just like you would have at a live event. We’ve found this approach to be much more engaging than the “faceless” webinar, and our attendees even tell us that our programs are somehow “interactive” (which is a great complement for a pre-recorded digital presentation!). In addition to the video presentation, attendees include a comprehensive training manual which provides citations and additional information, and can be used as an on-the-job resource. Some of our popular training programs include:

FTC Sues Facebook

Adam Witmer
Regulatory Update

On 12/9/2020, the Federal Trade Commission filed a lawsuit alleging that Facebook is illegally maintaining its personal social networking monopoly through a years-long course of anticompetitive conduct. The complaint alleges that Facebook has engaged in a systematic strategy to eliminate threats to its monopoly. For example, Facebook has been acquiring rivals such as Instagram and the mobile messaging app WhatsApp, as well as imposing anticompetitive conditions on software developers. The FTC states that…

FTC Issues Consumer Tips to Avoid COVID-19 Scams

Adam Witmer
Regulatory Update

On 12/8/2020, the Federal Trade Commission issued a “consumer education blog post” which provides tips for consumers on how to recognize and avoid vaccine-related scams. In their blog post, the FTC warns that, with COVID-19 vaccines in the pipeline, scammers will not be far behind. Therefore, consumers should look out for red flags of potential scams.

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