FinCEN Issues Updated FATF Deficient Countries

Adam Witmer
Regulatory Update, BSA

On Jun 29, 2023, 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 Takes Action Against ACI for Illegally Processing Mortgage Payments

Adam Witmer
Regulatory Update, Regulation E

On June 27, 2023, the CFPB issued an order against ACI Worldwide and one of its subsidiaries, ACI Payments, for improperly initiating approximately $2.3 billion in unlawful mortgage payment transactions. According to the CFPB, ACI’s data handling practices negatively impacted nearly 500,000 homeowners with mortgages serviced by Mr. Cooper (formerly known as Nationstar).

FDIC Updates Supervisory Guidance on Multiple Re-Presentment NSF Fees

Adam Witmer
Regulatory Update

On June 16, 2023, the FDIC updated its Supervisory Guidance on Multiple Re-Presentment NSF Fees (FIL-40-2022) to clarify its supervisory approach for corrective action when a violation of law is identified. In August of 2022, the FDIC issued the original guidance to address certain consumer compliance risks associated with assessing multiple non-sufficient funds (NSF) fees arising from the re-presentment of the same unpaid transaction.

VIDEO: What is BSA

VIDEO: What is BSA

Adam Witmer
BSA

In this Compliance Clip (video), Adam gives a short but sweet explanation of what the BSA or Bank Secrecy Act is and its role in preventing and detecting money laundering activities. A transcript of this video is now available.

Agencies Issue Final Guidance on Third-Party Risk Management

Adam Witmer

On June 8, 2023, the Federal Reserve, the OCC, and the FDIC issued a final joint guidance on managing risks associated with third-party relationships. The guidance provides sound principles that support a risk-based approach to third-party risk management that banking organizations may consider when developing and implementing risk management practices for all stages in the life cycle of third-party relationships.

FTC Submits Annual Report on TILA, CLA, and EFTA Enforcement

Adam Witmer
Regulatory Update

On June 8, 2023, the FTC submitted its annual enforcement report to the CFPB on its enforcement efforts and related activities in 2022 on the Truth in Lending Act (TILA), Consumer Leasing Act (CLA), and Electronic Fund Transfer Act (EFTA). The report highlights the FTC’s enforcement actions related to the acts and their implementing regulations, including in the areas of automobile purchases and financing, payday lending, credit repair and debt relief, other credit, and electronic fund transfers.

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