FinCEN Notice on Environmental Crimes

Adam Witmer
BSA, Regulatory Update

On 11/18/21, the Financial Crimes Enforcement Network (FinCEN) issued a Notice to call attention to an upward trend in environmental crimes and associated illicit financial activity. In the Notice, FinCEN explained that it is highlighting this trend because of: (1) its strong association with corruption and transnational criminal organizations, (2) a need to enhance reporting and analysis of related illicit financial flows; and (3) environmental crimes’ contribution to the climate crisis, including threatening ecosystems, decreasing biodiversity, and increasing carbon dioxide in the atmosphere. FinCEN’s Notice provides financial institutions with specific suspicious activity report (SAR) filing instructions and highlights the likelihood of illicit financial activity related to several types of environmental crimes.

VIDEO: Environmental Money Laundering

VIDEO: Environmental Money Laundering

Adam Witmer
BSA

In this Compliance Clip (video), Adam discusses an emerging money laundering trend, environmental money laundering. While this information doesn’t come from FinCEN directly, it did come from the Financial Action Task Force (FATF), and therefore, is good information for every BSA professional to consider.

Agencies Issue Rule on Incident Notification

Adam Witmer
Regulatory Update

On 11/18/21, the joint agencies issued a final rule to improve the sharing of information about cyber incidents that may affect the U.S. banking system. According to the FDIC’s press release, the final rule requires a banking organization to notify its primary federal regulator of any significant computer-security incident as soon as possible and no later than 36 hours after the banking organization determines that a cyber incident has occurred. Notification will be required for incidents that have materially affected—or are reasonably likely to materially affect—the viability of a banking organization’s operations, its ability to deliver banking products and services, or the stability of the financial sector.

CFPB Data Spotlight on SARs on Elder Financial Exploitation

Adam Witmer
BSA, Regulatory Update

In mid-November of 2021, the CFPB released a “data spotlight” on suspicious activity reports on elder financial exploitation. The publication highlights trends relating to SARs filed by financial institutions that relate to elder financial exploitation. In general, the analysis primarily relies on public data for EFE SARs filed between January 2014 and December 2020, available through SAR Stats .

APOR Rates Delayed for Week Of 11/15/21

Adam Witmer
HMDA

The CFPB announced that the publication of Average Prime Offer Rates (APOR) for the week of November 15, 2021 was delayed. This information was listed at the bottom of the page containing the CFPB’s rate spread calculator. As the CFPB states that these data are now available on the Bureau’s Rate Spread Calculator above, financial institution will want to ensure they are using the accurate data for the week of 1/15/21.

Joint Statement on Mortgage Servicing Rules

Adam Witmer
Regulatory Update, Regulation Z

On 11/10/21, the joint agencies (Federal Reserve, FDIC, CFPB, NCUA, OCC, and state financial regulators) issued a joint statement to communicate to mortgage servicers the agencies’ supervisory and enforcement approach as risks associated with the Coronavirus Disease (COVID-19) pandemic continue to change. In short, the agencies explain that the flexibilities outlined in their prior joint statement issued on April 3, 2020 are no longer necessary, and, therefore, those flexibilities no longer apply.

SALE ENDING TUESDAY: Fall 2021 Quarterly Compliance Update

Adam Witmer

The “early bird” discount on our Fall 2021 Quarterly Compliance Update will be ending next Tuesday, 11/16/21. As you would expect, this program includes all of the regulatory activity from the months of July, August, and September of 2021. Included in this program is a feature section on the CFPB’s proposal for small business data reporting which is a HMDA-like rule that will be a significant burden to those required to comply - and unfortunately, it looks like this rule will apply to quite a few community banks and credit unions (including many who are not currently HMDA reporters). You can learn more about this program and see the full curriculum at www.compliancecohort.com/fall-2021-quarterly-compliance-update.

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