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Banker's Toolbox, Inc., leaders in compliance solutions for financial institutions, announced the acquisition of Georgia-based MainStreet Technologies (MST). MST is an industry leader in the loan risk management space. This acquisition adds to a strong and growing portfolio of compliance-related solutions and will continue to enhance the value Banker's Toolbox brings to both their customers and the industry. (Read full press release here.)

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SCOTUS declines case on constitutionality of CFPB

The Hill reports that the U.S. Supreme Court has refused to hear a case challenging the constitutionality of the Consumer Financial Protection Bureau. The case was an appeal from the U.S. Court of Appeals for the District of Columbia decision to reject a challenge by The State National Bank of Big Spring, the Competitive Enterprise Institute and the 60 Plus Association to the constitutionality of the CFPB's structure as an "independent" agency.

The D.C. Circuit's decision to dismiss the case came after the court's full panel of judges had upheld the constitutionality of the Bureau's structure in another case.


Regulators post Call Report information

FDIC FIL-02-2019, issued also on behalf of the OCC and Federal Reserve, provides instructions for completion of Call Reports for the quarter ended December 31, 2018. The FIL also reminds banks of pending proposals to modify Call Reports that have not yet been finalized.


McWilliams presentation to American Bar Association committee

FDIC Chairman McWilliams addressed the annual meeting of the American Bar Association Banking Law Committee on Friday on the "Principles of Supervision." McWilliams said supervision should: (1) ensure that insured institutions are safe and sound; (2) provide clear rules of the road; (3) be consistent in its application; (4) be fair, effective, and holistic in the consideration of regulatory issues; (5) be timely and contemporary in providing feedback; (6) respect the business judgment of an institution’s management team; and (7) promote an open, two-way dialogue between the regulated and the regulators.


Mnuchin on Russia Sanctions

Treasury Secretary Mnuchin issued a statement in advance of yesterday's classified briefing for Members of the House of Representatives on the sanctions against Russian oligarch and Specially Designated National Oleg Deripaska and three companies he controlled at the time sanctions were imposed, En+ Group PLC (En+), United Company RUSAL PLC (Rusal), and EuroSibEnergo (ESE).


Modification of stress testing requirements proposed

The Federal Reserve Board is inviting comments on a proposal that would modify company-run stress testing requirements to conform with the Economic Growth, Regulatory Relief, and Consumer Protection Act. The proposal would raise the threshold requiring state-member banks to conduct their company-run stress tests from $10 billion in total consolidated assets to $250 billion. Additionally, in place of the current annual cycle, the proposal would generally require firms above the threshold to conduct company-run stress tests once every other year. It would also eliminate the hypothetical "adverse" scenario from company-run stress tests for bank holding companies, state member banks, U.S. intermediate holding companies of foreign banking organizations, and any nonbank financial company supervised by the Board. Similarly, the Board would no longer include an "adverse" scenario in its supervisory stress tests. Comments will be accepted until February 19, 2019.


Texas bank gets C&D for BSA/AML shortcomings

The Federal Reserve Board and the Banking Commissioner of the Texas Department of Banking have issued a Consent Cease and Desist Order to Commercial State Bank, Andrews, Texas, directing that the bank take specified actions following identification in a recent examination of the bank by the Federal Reserve Bank of Dallas and the Department of significant deficiencies in the bank’s risk management and compliance with applicable laws, rules, and regulations relating to anti-money laundering. Those deficiencies resulted in a compliance program violation.

The bank was directed to take action with regard to board oversight; the bank's BSA/AML compliance program; customer due diligence; suspicious activity monitoring and reporting; the bank's transaction monitoring system; and independent testing.


OFAC targets Venezuela currency exchange network

On Tuesday, January 8, OFAC sanctioned Venezuelan individuals and companies involved in a significant corruption scheme designed to take advantage of the Government of Venezuela’s currency exchange practices, generating more than $2.4 billion in corrupt proceeds. This designation, pursuant to Executive Order (E.O.) 13850, targets seven individuals, including former Venezuelan National Treasurer Claudia Patricia Diaz Guillen (Diaz) and Raul Antonio Gorrin Belisario (Gorrin), who bribed the Venezuelan Office of the National Treasury (ONT, or Oficina Nacional del Tesoro) in order to conduct illicit foreign exchange operations in Venezuela.

In addition to Diaz and Gorrin, OFAC designated or blocked five other individuals and 23 entities, pursuant to E.O. 13850, for their roles in the bribery scheme, and identified one private aircraft as blocked property.

For information on a General License issued in connection to these designations and on the identities of the designated individuals, entities and aircraft, see our OFAC Update.


OCC reminder of CRA threshold changes

The OCC's Bulletin 2019-1 reminds OCC-supervised institutions that the agency has published revisions to its Community Reinvestment Act regulations that became effective on January 1, 2019. The revisions adjust the asset-size threshold amounts used to define “small bank,” “small savings association,” “intermediate small bank,” and “intermediate small savings association.” The rulemaking adjusts the threshold amounts based on the annual percentage change in a measure of the consumer price index.

The OCC said that national banks and savings associations with assets between $313 million and $321 million as of December 31, 2016, and December 31, 2017, or between $1.252 billion and $1.284 billion as of either of those dates, should review the revisions to asset thresholds described in the bulletin to determine whether their CRA performance evaluation criteria have changed.


HMDA filing period open

The CFPB announced on Friday to its subscribed email list that the filing period for HMDA data collected in 2018 opened on January 1, 2019. Financial institutions can access the HMDA Platform at With the opening of the live filing period, the beta testing period for 2018 filing is closed, and all test data uploaded during the beta period have been purged.

User accounts created during the 2018 beta test period and during the filing period for 2017 data will be maintained for the 2018 period, and users can use their current credentials to access the HMDA Platform. Financial institutions should continue providing feedback on their experience using the HMDA Platform and to direct any questions regarding the HMDA Platform to


USAA to pay $15.3M for Reg E violations

The CFPB has announced a settlement with USAA Federal Savings Bank, a federally chartered savings association headquartered in San Antonio, Texas. Under the terms of a Consent Order, USAA must, among other provisions, provide approximately $12 million in restitution to certain consumers who were denied a reasonable error resolution investigation, and pay a $3.5 million civil money penalty. The Bureau found that USAA violated the Electronic Fund Transfer Act and Regulation E by failing to properly honor consumers’ stop payment requests on preauthorized electronic fund transfers, and by failing to initiate and complete reasonable error resolution investigations. USAA also violated the Consumer Financial Protection Act of 2010 by reopening deposit accounts consumers had previously closed without seeking prior authorization or providing adequate notice. See "USAA FSB to pay $3.5M fine and make restitution" in our Penalties pages for additional information.


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