Fed Extends Reg O Exception for PPP Loans

Adam Witmer
Regulation O, Regulatory Update

On 2/9/2021, the Federal Reserve Board announced the second extension of a rule to bolster the effectiveness of the Small Business Administration's (SBA) Paycheck Protection Program (PPP). Like the earlier extensions, this one will temporarily modify the Board's rules so that certain bank directors and shareholders can apply to their banks for PPP loans for their small businesses.

FTC Reports 2.2 Million Fraud Complaints in 2020

Adam Witmer
Regulatory Update

On February 4, 2020, the Federal Trade Commission announced that they had received more than 2.1 million fraud reports from consumers in 2020. They noted that imposter scams remained the most common type of fraud reported while online shopping was the second-most common fraud category reported by consumers. The top five categories rounded out with internet services; prizes, sweepstakes, and lotteries; and telephone and mobile services.

VIDEO: Anti-Money Laundering Act of 2020

VIDEO: Anti-Money Laundering Act of 2020

Adam Witmer
Regulatory Update, BSA

In this Compliance Clip (video), Adam provides an overview of 5 things that will likely come from the Anti-Money Laundering Act of 2020. As this new law will have significant implications in the BSA/AML world, it will be important for BSA/AML professionals to watch applicable developments that result from the Anti-Money Laundering Act of 2020.

NCUA Webinar on New Chairman's Priorities

Adam Witmer
Compliance Management, Regulatory Update

On 2/2/2021, the NCUA announced that they will be hosting a webinar on Thursday, February 11, 2021, that will provide participants with an update on Chairman Todd M. Harper’s priorities, the agency’s supervisory activities, and recently issued guidance and regulations, among other topics. As some may recall, Chairman Harper was announced on 1/25/2021 as President Biden’s designated Chairman of the NCUA Board. Harper is also the NCUA director who, in October of 2020, requested comments regarding the NCUA’s approach to supervising institutions for regulatory compliance. In the announcement about the upcoming webinar, Mr. Harper is quoted as saying that he will share his “regulatory philosophy” with stakeholders during this webinar. Credit union compliance professionals may want to consider taking part in this webinar as it may shed some light on the direction of regulatory compliance supervision and enforcement from the NCUA going forward.

FinCEN Advisory on COVID-19 Health Care Fraud

Adam Witmer
BSA

On 2/2/2021, FinCEN issued their first advisory of the year, FIN-2021-A001, which focuses on COVID-19-related fraud involving the health care industry. The advisory contains descriptions of COVID-19-related fraud involving health care benefit programs and health insurance, associated financial red flag indicators, select case studies, and information on reporting suspicious activity. Of particular note, FinCEN requests financial institutions reference this new advisory in SAR field 2 (Filing Institution Note to FinCEN) and the narrative by including the following key term: “FIN-2021-A001” and select SAR field 34g (health care – public or private health insurance). Additional guidance for filing SARs appears near the end of this advisory.

SBA & FinCEN Add PPP FAQs

Adam Witmer
BSA

On 1/29/2021, the Small Business Administration (SBA) reissued their list of Frequently asked questions regarding PPP loans. The updated version of the FAQs explains that FAQs 1-53 are in the process of being revised and do not yet reflect the changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act enacted on December 27, 2020. On 2/1/2021, FinCEN also updated their FAQs to correspond with the updated SBA FAQs.

OCC Issues Info for New CRA Rule

Adam Witmer
Regulatory Update, CRA

On 1/29/2021, the OCC announced the availability of three things which apply to OCC-regulated institutions: the availability of the 2021 list of bank type determinations, the 2021 list of distressed and underserved areas, and the banking industry median hourly compensation value. This information applies to the OCC’s new CRA regulations that were published in the Federal Register on 6/5/2020.

Harper Named NCUA Board Chairman

Adam Witmer
Compliance Management, Regulatory Update

On 1/25/2021, the NCUA announced that President Biden had designated National Credit Union Administration Board Member Todd M. Harper as the twelfth Chairman of the NCUA Board. Harper succeeds Rodney Hood, who was designated Board Chairman in April 2019. Hood continues to serve as an NCUA Board Member. Harper was nominated to the NCUA Board on Feb. 6, 2019. Following Senate confirmation, he took office as an NCUA Board Member on April 8, 2019. As some might recall, it was Mr. Harper who, in October of 2020, requested comments regarding the NCUA’s approach to supervising institutions for regulatory compliance.

CFPB Director Kraninger Resigns

Adam Witmer
Regulatory Update

On 1/20/21, CFPB Director Kathleen Kraninger announced via Twitter that she was resigning from the CFPB at the request of newly sworn in President, Joe Biden. This request and subsequent resignation comes as no surprise as national media outlets have recently reported that Biden was set to nominate Rohit Chopra as the Director of the CFPB. Chopra, a former McKinsey & Company consultant, worked with Senator Elizabeth Warren on establishing the CFPB before heading up the student lending division of the CFPB in 2011. These changes in the CFPB, along with other future changes, should help to facilitate an interesting four years for regulatory compliance professionals.

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