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Free Webinar: CDD/Beneficial Ownership — One Year Out
Thursday, May 11th - 1:00 PM CT

We're almost one year out from the new Customer Due Diligence (CDD) rule's deadline. Join us as we discuss all things CDD, including policies, procedures and training. We will help you prepare and discuss what steps your core, new account platform and AML software vendors are taking now to ensure you're compliant by May 2018. (Register here.)

Top Story Compliance Related


Bureau smacks SNAAC for violating 2015 order

The CFPB took another swipe at SNAAC - - Security National Automotive Acceptance Company -- with a consent order that the Ohio-based auto lender specializing in loans to servicemembers pay an additional $1.25 million in penalties for noncompliance with an October 28, 2015, CFPB Administrative Order. The Bureau has determined that SNAAC failed to provide more than $1 million in refunds and credits due under the earlier order to more than 1,000 consumers. In 2015, SNAAC paid a $1 million civil penalty and was supposed to make approximately $2.28 million in redress payments. Yesterday's CFPB press release reports that SNAAC treated accounts that were settled-in-full as having a positive account balance instead of providing refunds. These "account credits" were worthless to consumers who no longer owed SNAAC money and couldn't use the credits toward another loan with SNAAC. SNAAC gave consumers whose accounts were discharged in bankruptcy the same worthless-credit treatment.

To ensure that the yet-to-be-completed redress payments will be properly delivered, the Bureau has now ordered SNAAC to pay the funds to the Bureau for redistribution to the consumers involved, along with a fee of $75,000 to the Bureau to cover the Bureau's costs involved. In addition, SNAAC must pay an additional civil money penalty of $1.25 million to the Bureau's Civil Penalty Fund. For additional information, see "CFPB hits SNAAC with another $1.25M CMP," in our Penalty Pages.


Student loan complaints focus of CFPB monthly summary

The CFPB complaint snapshot for April 2017 highlights consumer complaints about student loans. The April summary shows that both private and federal student loan borrowers nationwide report persistent servicing breakdowns that may sideline their path to repayment. The report's geographic focus for April was on complaints coming from Nevada.


FATF evaluation of Sweden's AML/CFT system

The Financial Action Task Force (FATF) has conducted an assessment of Sweden’s anti-money laundering and counter-terrorist financing (AML/CFT) system, based on the 2012 FATF Recommendations. The FATF indicates all the elements of Sweden’s AML/CFT supervisory system are in place, but there are weaknesses in applying risk-based supervision. Compliance by financial institutions and by designated non-financial businesses and professions (DNFBPs) of their obligations is generally adequate: large banks have made significant efforts to enhance AML/CFT compliance, but there is a need to improve smaller financial institutions’ and DNFBPs’ understanding of the risks they are exposed to. There are also several remaining areas where Sweden’s AML/CFT regulations should be updated to reflect the 2012 FATF standards, reports the FATF. The full report and an executive summary were made available


U.S. Bank assessed $15M CMP for bankruptcy filing violations

The OCC has issued a consent order for the assessment of a $15 million civil money penalty against U.S. Bank National Association for bankruptcy filing violations. The OCC found that, between 2009 and 2014, the bank engaged in filing practices in bankruptcy courts with respect to proofs of claim, payment change notices, and post-petition fees, among others, that did not comply with bankruptcy rules and constituted unsafe or unsound banking practices. In addition to the civil money penalty, U.S. Bank has made or will make about $29 million in remediation payments to approximately 22,000 account holders.


FEMA suspends communities from NFIP

The Federal Emergency Management Agency continued a series of after-the-fact publications of community suspensions from the National Flood Insurance Program for noncompliance with the floodplain management requirements of the program. In today's Federal Register, FEMA announced April 19, 2017, suspensions of communities in Louisiana (portions of St. Mary Parish), and Minnesota (portions of Fillmore, Goodhue, Lake of the Woods, Olmsted and Roseau Counties). [82 FR 19190]


HMDA proposal published

The CFPB has published [82 FR 19142] its proposal to make technical corrections and to clarify certain requirements in the Bureau's HMDA (Regulation C) final rule published on October 28, 2015. Comments on the proposal are due by May 25, 2017.


Investment banker charged with insider trading

The Securities and Exchange Commission has filed a complaint against a vice president in the risk management department of a New York-based investment bank charging him with insider trading on confidential information he learned in advance of a private equity firm’s acquisition of a publicly-traded technology company. The SEC alleges that Avaneesh Krishnamoorthy learned that Golden Gate Capital planned to acquire Neustar Inc., and he then began trading in Neustar securities. The trading took place in two brokerage accounts that Krishnamoorthy allegedly kept hidden from his employer, which had been approached by Golden Gate Capital to finance the transaction. According to the SEC’s complaint, Krishnamoorthy made approximately $48,000 in illicit profits.


Debt collector pays $2M to settle FTC charges

A federal court, at the request of the FTC, has ordered Timothy Ford, the president of Commercial Recovery Systems Inc. (CRS), to pay a $2 million civil penalty for violating the Fair Debt Collection Practices Act by falsely threatening debtors. The lawsuit filed in 2015 by the FTC alleged that CRS's collectors falsely claimed the company would sue debtors, garnish their wages, levy their bank accounts, or seize their property unless their debts were paid.


ComE-IN meeting this week

The FDIC has announced its advisory Committee on Economic Inclusion (ComE-IN) will meet on April 27 to discuss measures banks may consider to reach underserved populations, such as collaborations with community-based organizations, resources for affordable mortgage lending, and new research that may be used to more effectively target resources to promote broader access to bank branches in underserved neighborhoods. The meeting will be open to the general public from 9 a.m. to 4 p.m. in the FDIC's Board Room, 6th Floor, 550 17th Street, N.W., Washington, D.C. Meeting agenda


OCC to host MSAAC meeting

The OCC has issued a notice that it will host a public meeting of the Mutual Savings Association Advisory Committee (MSAAC) on May 9, 2017, beginning at 8:30 a.m. EDT at 400 7th Street SW, Washington, D.C.


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UDAAP Reality Check

We will explore what makes a practice unfair or deceptive by digging into what regulators and the courts have had to say.

Stop That Payment!

Bankers must understand the differences between the use of their systems' stop payment functionality and the actual right to stop payment

Penalties View All

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