Das Discusses BOI Reporting Rule

Adam Witmer
Regulatory Update, BSA

On October 12, 2022, FinCEN Acting Director Himamauli Das spoke at the ACAMS AML Conference where he talked about FinCEN’s implementation plan for the Corporate Transparency Act (CTA), particularly the recently issued final rule on beneficial ownership information reporting requirements. Das highlighted the importance of implementing an effective AML/CFT compliance program and how it helps the agency find and stop illicit activities.

FinCEN and OFAC Take Action Against Bittrex, Inc.

Adam Witmer
Regulatory Update, BSA

On October 11, 2022, FinCEN and OFAC announced in separate press releases that they have taken action against Brittex, Inc., a virtual asset service provider, for willful violations of the BSA and for or apparent violations of sanctions against Cuba, Ukraine-related, Iran, Sudan, and Syria. FinCEN assessed a total of $29,280,829.20 civil money penalty against Brittex, $24,280,829.20 of which will be remitted to OFAC.

CFPB Reminds of the Reconsideration of Value Process

Adam Witmer
Regulatory Update

On October 6, 2022, the CFPB published an article highlighting that mortgage borrowers can challenge inaccurate appraisals through the reconsideration of value (ROV) process. According to the article, homebuyers and homeowners can ask for a lender to reconsider a home valuation the consumer believes to be inaccurate. ROV may be requested when borrowers observe factual or other errors or omissions, inadequate comparable properties, or prohibited bias during appraisal.

OCC’s 2023 Bank Supervision Operating Plan

Adam Witmer
Regulatory Update

On October 6, 2022, the OCC released its bank supervision operating plan for fiscal year 2023, which begins on October 1, 2022 and ends on September 30, 2023. The plan provides the foundation for policy initiatives and for supervisory strategies as applied to individual national banks, federal savings associations, federal branches, federal agencies, and technology service providers. The OCC staff will use this plan to guide their supervisory priorities, planning, and resource allocations.

CFPB Issues Order Against Choice Money for Remittance Violations

Adam Witmer
Regulatory Update, Regulation E

On October 4, 2022, the CFPB took action against Choice Money Transfer (Choice Money) for multiple violations of the Remittance Transfer Rule and the Electronic Fund Transfer Act (EFTA), such as failing to accurately disclose important prepayment information to remittance senders. Choice Money is a nonbank remittance provider incorporated in New York and headquartered in New Jersey. It currently handles approximately 500,000 transfers a month.

FRB Issues Final Rule on Debit Card Transactions

Adam Witmer
Regulatory Update

On October 3, 2022, the Federal Reserve Board issued a final rule that amends Regulation II to specify that debit card issuers should enable at least two payment card networks to process all debit card transactions, including "card-not-present" transactions, such as online payments. It also clarifies the requirement that debit card issuers ensure that at least two unaffiliated networks have been enabled to process a debit card transaction. The final rule will be effective July 1, 2023.

FinCEN Issues Final Rule on Beneficial Ownership Information Reporting

Adam Witmer
Regulatory Update, BSA

On September 30, 2022, FinCEN issued a final rule establishing a beneficial ownership information reporting requirement, pursuant to the bipartisan Corporate Transparency Act (CTA). This rule will require certain entities to file with FinCEN reports that identify two categories of individuals: the beneficial owners of the entity, and individuals who have filed an application with specified governmental authorities to create the entity or register it to do business. The requirements in the final rule are intended to help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity, while minimizing the burden on entities doing business in the United States.

OFAC’s Sanctions Guidance for Instant Payment Systems

Adam Witmer
Regulatory Update, BSA

On September 30, 2022, the OFAC published the Sanctions Compliance Guidance for Instant Payment Systems, which emphasizes the importance of taking a risk-based approach to managing sanctions risks in the context of new payment technologies such as instant payment systems and to highlight considerations relevant to managing those risks. The guidance also encourages developers of instant payment systems to incorporate sanctions compliance considerations and features as they develop these systems.

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