Weekly Rewind...News from Your Regulators!

Compliance Services Group is here for your regulatory updates.

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NCUA Board Approves Oregon's Revised MBL Rule

Oregon MBL Rule – During the eighth open meeting, the NCUA Board unanimously approved an exemption for Oregon’s revised member business lending rule. In June 2021, the Oregon Department of Consumer and Business Services submitted a request for the NCUA Board to make a determination that the state’s proposed revisions to the Oregon member business lending rule would meet the standards specified in section 723.10(a) of the NCUA’s regulations. The Board agreed that Oregon’s rule covers all the provisions and is no less restrictive than Part 723 of the NCUA’s Rules and Regulations. (Published September 23, 2021)

FDIC Issues Enforcement Orders

Enforcement Orders – The FDIC issued eight Orders in August 2021. The administrative enforcement actions in those Orders consisted of one Consent Order, three terminations of Consent Orders, two Orders to Pay Civil Money Penalty, one Removal/Prohibition Order, and two Section 19 Orders. (Published September 24, 2021)

CFPB - Consumer Complaint Analysis Results

Consumer Complaints - The CFPB released the first in-depth report analyzing complaint submission patterns by U.S. Census tract. The report finds that complaints from wealthier communities with higher percentages of white, non-Hispanic residents were typically about loan origination and performance of servicing, while the complaints from communities of color and lower income communities were more frequently about credit reporting, identity theft, and delinquent servicing. (Published September 23, 2021)

OFAC Updates Ransomware Advisory

Updated Ransomware Advisory – The OFAC issued an updated advisory to highlight the sanctions risks associated with ransomware payments in connection with malicious cyber-enabled activities and the proactive steps companies can take to mitigate such risks, including actions that OFAC would consider to be "mitigating factors" in any related enforcement action. (Published September 21, 2021)  

OCC Issues Updated Handbook

Updated Comptroller’s Handbook – The OCC issued an update to the “Earnings” and “Regulatory Reporting” booklets in the Comptroller's Handbook. The Earnings booklet provides information on how to complete an earnings analysis and procedures to use when reviewing earnings for a specific line of business or the bank as a whole. The Regulatory Reporting booklet provides information for examiners on common financial regulatory reports, including the call report and other Federal Financial Institutions Examination Council financial reports. (Published September 22, 2021)

News from the OCC

Cease and Desist Order – The OCC issued a Cease-and-Desist Order against MUFG Union Bank, N.A. based on the Bank’s unsafe or unsound practices regarding technology and operational risk management and the Bank’s noncompliance with the Interagency Guidelines Establishing Information Security Standards contained in Appendix B to 12 CFR Part 30. The order requires the Bank to improve longstanding technology and operational risk governance, technology risk assessments, internal controls, and staffing deficiencies to address the unsafe or unsound practices. (Published September 20, 2021)

FinCEN Proposes Amendments to BSA

Antiquities Regulations – FinCEN issued an Advance Notice of Proposed Rulemaking to solicit public comment on a range of questions related to the implementation of amendments to the Bank Secrecy Act (BSA) regarding the trade in antiquities. This ANPRM is the first in a series of regulatory actions that FinCEN will undertake to implement Section 6110 of the Anti-Money Laundering Act of 2020. Section 6110 of the AML Act amended the BSA by including (as a type of financial institution) a person engaged in the trade of antiquities, including an advisor, consultant, or any other person who engages as a business in the solicitation or the sale of antiquities.

The trade in antiquities may be exploited by money launderers and terrorist financiers to evade detection by law enforcement and to launder illicit funds through the U.S. financial system. Terrorist organizations, transnational criminal networks, and other malign actors may also seek to exploit antiquities to acquire new sources of funds, evade detection, and launder proceeds from illicit activities. Some terrorist groups have generated revenue from permitting or facilitating the illegal extraction or trafficking of antiquities in territories where they operate. (Published September 23, 2021)

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