Top Story Compliance Related

The OCC has released its schedule of Community Reinvestment Act (CRA) evaluations to be conducted in the first and second quarters of 2019.

The Federal Reserve Board has published [83 FR 61408] a proposed rule that would establish risk-based categories for determining prudential standards for large U.S. banking organizations, consistent with section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. The proposal would also amend certain prudential standards, including standards relating to liquidity, risk management, stress testing, and single-counterparty credit limits, to reflect the risk profiles of banking organizations under each proposed category of standards and would apply prudential standards to certain large savings and loan holding companies using the same categories. In addition, the proposal would make corresponding changes to reporting forms. Comments are due by January 22, 2019.

Treasury has announced proposed regulations related to the determination of foreign tax credits following the implementation of the Tax Cuts and Jobs Act. The proposed regulations provide guidance on computing foreign tax credits, and include rules for allocating and apportioning deductions that determine taxable income from foreign sources. Changes to the treatment of foreign tax credits under the new law included adding new foreign tax credit limitation categories, and providing new foreign tax credit rules related to the enactment of the global intangible low taxed income provisions. The proposed regulations provide rules on the allocation and apportionment of deductions, including a rule treating certain assets as partially exempt for expense allocation purposes. The regulations also establish rules on applying the new foreign tax credit limitation categories, and include a taxpayer favorable elective transition rule for carryovers of foreign tax credits.

OFAC has designated two Iran-based individuals, Ali Khorashadizadeh and Mohammad Ghorbaniyan, who helped exchange digital currency (bitcoin) ransom payments into Iranian rial on behalf of Iranian malicious cyber actors involved with the SamSam ransomware scheme that targeted over 200 known victims. In a first for OFAC, it has identified two digital currency addresses associated with these two financial facilitators.

In a related action, the U.S. Department of Justice today indicted the two Iranian criminal actors for infecting numerous data networks with SamSam ransomware in the United States, United Kingdom, and Canada since 2015. OFAC also updated its FAQs with additional information on compliance requirements for digital currencies. For identification details (including the digital currency addresses) for the two designated individuals, see our OFAC Update.

The FDIC has published [83 FR 61111] a final rule amending its rules of practice and procedure to remove duplicative, descriptive regulatory language related to civil money penalty (CMP) amounts that restates existing statutory language; codify Congress's recent change to CMP inflation-adjustments in the FDIC's regulations; and direct readers to an annually published notice in the Federal Register—rather than the Code of Federal Regulations (CFR)—for information regarding the maximum CMP amounts that can be assessed after inflation adjustments.

The Federal Financial Institutions Examination Council (FFIEC) has provided a second update on its Examination Modernization Project. The project identifies and assesses ways to improve the effectiveness, efficiency, and quality of community financial institutions' safety and soundness examination processes, particularly through increased use of technology. The project is a follow-up to the review of regulations under the Economic Growth and Regulatory Paperwork Reduction Act. FFIEC members with safety and soundness examination responsibilities expect these efforts to help reduce unnecessary regulatory burden on community financial institutions.

The Treasury Department announced yesterday that its Office of Foreign Assets Control (OFAC) has taken action under a new Executive Order (E.O.) targeting the Ortega regime and its supporters, who continue to engage in rampant corruption, dismantling of democratic institutions, serious human rights abuse, and exploitation of the people and public resources of Nicaragua for private gain. Under the newly issued E.O., OFAC imposed sanctions on two of Nicaraguan President Daniel Ortega’s closest associates: the vice president of Nicaragua and First Lady, Rosario Maria Murillo De Ortega, and Nestor Moncada Lau, who has acted as a national security advisor to the Nicaraguan president and vice president. For identity details, see our OFAC Update.

HUD has announced it has filed a Charge naming the owners, architect, and builder of a Denver, Colorado, apartment building with housing discrimination for failing to make the complex handicap accessible. The case came to HUD's attention when Denver Metro Fair Housing Center (DMFHC), a HUD Fair Housing Initiatives Program agency, filed a complaint after fair housing tests on the complex indicated that it likely violated the Fair Housing Act. HUD's charge alleges that the owners and builders failed to design and construct the building in accordance with the Fair Housing Act because certain areas of the building are inaccessible to people with mobility impairments.

The U.S. Securities and Exchange Commission has published a list of Commission rules [83 FR 60791] to be reviewed pursuant to Section 610 of the Regulatory Flexibility Act. The list is published to provide the public with notice that these rules are scheduled for review by the agency and to invite public comment on whether the rules should be continued without change, or should be amended or rescinded to minimize any significant economic impact of the rules upon a substantial number of small entities. Comments are due in 30 days, by December 27, 2018.

The CFPB has announced a settlement with Santander Consumer USA Inc. (Santander), a consumer financial services company based in Dallas, Texas, that is a subsidiary of Boston-based Santander Holdings USA, Inc., parent company of Santander Bank, N.A. The Bureau found that Santander had engaged in deceptive acts and practices in connection with its vehicle financing and add-on products.

Under the settlement agreement and consent order, Santander will provide over $9 million in restitution to affected consumers and pay a $2.5 million civil money penalty. For more information, see our penalty page.