Hsu on Managing Large Banks

Adam Witmer
Regulatory Update

On January 17, 2023, Acting Comptroller of the Currency Michael J. Hsu spoke at the Brookings Institution. In his speech, Hsu talked about the limits of large bank manageability, or what some call the too-big-to-manage (TBTM) problem. Hsu stressed the contribution of large banks to the economy and how, as they are becoming bigger and more complex, managing large banks is becoming more challenging.

HUD Fines Three Landlords for Race Discrimination

Adam Witmer
Regulatory Update

On January 12, 2023, the HUD announced that the Administrative Law Judge (ALJ) has ordered three Plano, Texas landlords to pay damages, civil penalties, and attorney’s fees totaling $140,649 for violating the Fair Housing Act. The ALJ found that agent Quang Dangtran and property owners Ha Nguyen and HQD Enterprise, LLC refused to rent to a Black woman because of race, made discriminatory statements, placed discriminatory advertisements on Craigslist, and retaliated against the woman because she filed a complaint with HUD.

HUD Addresses Bias in FHA-Financed Home Appraisal Process

Adam Witmer
Regulatory Update, Appraisals

On January 12, 2023, HUD Secretary Marcia L. Fudge announced that HUD, through the Federal Housing Administration, is creating a process that people seeking FHA financing can use to request a review of their appraisal if they believe the results may have been skewed by racial bias. The proposed change to FHA policy represents the first step to solidify the processes that lenders must follow when a borrower requests a Reconsideration of Value (ROV) review if concerns arise around unlawful discrimination in residential property valuation

VIDEO: Reporting a SAR on a Director to the Board

VIDEO: Reporting a SAR on a Director to the Board

Adam Witmer
BSA

In this Compliance Clip (video), Adam discusses options for reporting a SAR to the board of directors when the SAR is on a director. He also discusses what to do if the SAR is on a member of senior management, like the president of the financial institution. This is a must-watch video for any BSA professional.

FinCEN Prohibits Fund Transmittals Involving Bitzlato

Adam Witmer
BSA, Regulatory Update

On January 18, 2023, FinCEN issued an order that identifies the virtual currency exchange Bitzlato Limited (Bitzlato) as a “primary money laundering concern” in connection with Russian illicit finance. This is the first order issued pursuant to section 9714(a) of the Combating Russian Money Laundering Act, as amended, and highlights the serious threat that business operations that facilitate and support Russian illicit finance pose to U.S. national security and the integrity of the U.S. financial sector. 

CFPB Updates Mortgage Servicing Exam Procedures

Adam Witmer
Regulatory Update

On January 18, 2023,  issued updates to the Mortgage Servicing Examination Procedures. The Examination Procedures describe the types of information that CFPB examiners gather to evaluate mortgage servicers’ policies and procedures; assess whether servicers are complying with applicable laws; and identify risks to consumers related to mortgage servicing. The updates to the procedures aim to provide transparency to stakeholders about how CFPB does its work.

FRB Issues Instructions Regarding the Climate Scenario Analysis Exercise

Adam Witmer
Regulatory Update

On January 17, 2023, the Federal Reserve Board provided additional details on how its pilot climate scenario analysis exercise will be conducted and the information on risk management practices that will be gathered over the course of the exercise. In a previous blog, we wrote about the Board announcing that it will conduct a pilot climate scenario analysis exercise designed to enhance the ability of supervisors and firms to measure and manage climate-related financial risks.

FinCEN Issues Alert on Human Smuggling Along the US Southwest Border

Adam Witmer
Regulatory Update, BSA

On January 13, 2023, FinCEN issued an alert which aims to better aid financial institutions in the detection of financial activity related to human smuggling along the southwest border of the United States. The alert provides trends and typologies specifically related to human smuggling occurring along the SW border. It also provides red flag indicators to help financial institutions better identify transactions potentially related to human smuggling and reminds financial institutions of their Bank Secrecy Act (BSA) reporting obligations.

WealthPress Settles with FTC for Violating the Notice of Penalty Offenses

Adam Witmer
Regulatory Update

On January 13, 2023, the FTC announced that investment advice company WealthPress has agreed to a proposed court order that would require it to refund more than $1.2 million to consumers and pay a $500,000 civil penalty for deceiving consumers with outlandish and false claims about their services. This case mark’s the first time that FTC has collected civil penalties against a company that received the Notice of Penalty Offenses regarding money-making opportunities and the first civil penalties for violations of the Restore Online Shoppers’ Confidence Act. (ROSCA).

Load More