CFPB Issues Annual Reg Z Threshold Adjustments for 2022

Adam Witmer
Regulatory Update

In late October, 2021, the CFPB announced a final rule to implement the annual adjustment requirements of Regulation Z. Specifically, the CFPB is required to calculate annually the dollar amounts for several provisions in Regulation Z, and the final rule revises, as applicable, the dollar amounts for provisions implementing TILA and amendments to TILA, including under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The CFPB is adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index (CPI) in effect on June 1, 2021.

FTC Continues Warning Letters

Adam Witmer
Regulatory Update

On 10/26/21, the Federal Trade Commission announced that it is putting more than 1,100 businesses that pitch money-making ventures on notice that if they deceive or mislead consumers about potential earnings, the FTC won’t hesitate to use its authority to target them with large civil penalties.

FATF Update List of Deficient Countries

Adam Witmer
BSA, Regulatory Update

On 10/26/21, FinCEN issued a press release to inform U.S. financial institutions that the Financial Action Task Force (FATF), an intergovernmental body that establishes international standards to combat money laundering, counter the financing of terrorism, and combat weapons of mass destruction proliferation financing (AML/CFT/CPF), has issued public statements updating its lists of jurisdictions with strategic AML/CFT/CPF deficiencies following its plenary meeting this month. U.S. financial institutions should consider the FATF’s stance toward these jurisdictions when reviewing their obligations and risk-based policies, procedures, and practices.

CFPB Announces Deliberate Discrimination Case

Adam Witmer
Regulatory Update, Fair Lending

On 10/22/21, the CFPB announced that it, along with the Department of Justice (DOJ) and OCC, took action to put an end to alleged redlining by Trustmark National Bank. The CFPB and DOJ allege that Trustmark discriminated against Black and Hispanic neighborhoods by deliberately not marketing, offering, or originating home loans to consumers in majority-Black and Hispanic neighborhoods in the Memphis metropolitan area. The CFPB and DOJ also allege that Trustmark discouraged consumers residing in or seeking credit for properties located in these neighborhoods from applying for credit.

FinCEN Announces CIP Relief for Casinos

Adam Witmer
BSA, Regulatory Update

On 10/19/21, FinCEN announced that it had granted limited exceptive relief (FIN-2021-R001) to casinos from certain customer identity verification requirements in the context of online gaming. Specifically, the relief allows a casino to utilize suitable non-documentary methods to verify the identity of online customers, though the suitability or non-suitability of any particular method must be evaluated based on risk.

FTC Annual Report on Protecting Older Adults

Adam Witmer
Regulatory Update

On 10/18/21, the Federal Trade Commission (FTC) issued their annual report to Congress on protecting older adults. This report highlights updated findings from the FTC’s fraud reports showing trends in how older adults report being affected by fraud. The report also includes information on the FTC’s efforts to protect older consumers through law enforcement actions and outreach and education programs, as well as highlighting the FTC’s work to combat scams related to the COVID-19 pandemic.

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