CFPB Issues Outline of Proposals for Financial Data Rights Rule

Adam Witmer
Regulatory Update

On October 27, 2022, the CFPB published an outline of proposals and alternatives under consideration for the required rulemaking on personal financial data rights. The CFPB outlined options to strengthen consumers’ access to, and control over, their financial data as a first step before issuing a proposed data rights rule that would implement section 1033 of the Dodd-Frank Act. Under the options the CFPB is considering, consumers would be able to more easily and safely walk away from companies offering bad products and poor service and move towards companies competing for their business with alternate or innovative products and services.

FinCEN Reports Increase in Ransomware Reporting

Adam Witmer
Regulatory Update, BSA

On November 1, 2022, FinCEN issued its most recent Financial Trend Analysis of ransomware-related Bank Secrecy Act (BSA) filings for 2021, indicating that ransomware continued to pose a significant threat to U.S. critical infrastructure sectors, businesses, and the public. FinCEN’s report focuses on ransomware trends in BSA filings from July-December 2021, and addresses the extent to which a substantial number of ransomware attacks appear to be connected to actors in Russia.

FATF Updates List of Deficient Countries

Adam Witmer
Regulatory Update, BSA

On October 31, 2022, 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.

OCC Announces Office of Financial Technology

Adam Witmer
Regulatory Update

On October 27, 2022, the announced that it will establish an Office of Financial Technology early in the year 2023 to bolster the agency’s expertise and ability to adapt to a rapidly changing banking landscape. The OCC stated that the Office of Financial Technology will build on and incorporate the Office of Innovation, which the OCC established in 2016 to coordinate agency efforts to support responsible financial innovation.

CFPB Issues Guidance on Junk Fee Practices

Adam Witmer
Regulatory Update

On October 26, 2022, the CFPB issued guidance about two junk fee practices that are likely unfair and unlawful under existing law. The guidance, issued in two separately through a circular and a compliance bulletin, are intended to help banks avoid charging illegal junk fees on deposit accounts. This topic, along with a discussion on the FDIC’s recent guidance for overdraft fees on representment items, will be included in our Fall 2022 Quarterly Compliance Update which will be available in our store within the next few weeks.

FTC Issues Consent Order Against Opendoor Labs

Adam Witmer
Regulatory Update

On October 21, 2022, the FTC finalized a consent order against Opendoor Labs, Inc. designed to prevent the online real estate business from deceiving consumers about how much money they could save by selling their home to Opendoor, as opposed selling on the open market. The final order requires Opendoor to pay $62 million and to have competent and reliable evidence to support any representations made about the costs, savings, or financial benefits associated with using its service.

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