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How to add predictive analytics into your risk program. Risk reports are often limited to historical insights and issues and do not provide guidance and insights into the future of the organization. Adding predictive analytics can allow your organization to detect emerging risks and create mitigation plans. This can be achieved by combining internal and external key risk indicators (KRIs) and key performance indicators (KPIs) with regulatory intelligence. This ensures that risk reports can detect more issues and highlight areas of concern. Click here to learn more.


Top Story Compliance Related

10/01/2019

Venezuela-related General Licenses amended

10/01/2019

NCUA issues rules for PALs II

The NCUA Board published [84 FR 51942] a final rule (referred to as the PALs II rule) to allow federal credit unions to offer additional payday alternative loans (PALs) to their members. The final rule does not replace the NCUA's current PALs rule (referred to as the PALs I rule). Rather, the PALs II rule grants FCUs additional flexibility to offer their members meaningful alternatives to traditional payday loans while maintaining many of the key structural safeguards of the PALs I rule. The PALs II rule will be effective December 2, 2019.

10/01/2019

OFAC targets Russian financier for election meddling attempt

The Treasury Department announced yesterday that OFAC had taken action against Russian actors that attempted to influence the 2018 U.S. midterm elections, though there was no indication that foreign actors were able to compromise election infrastructure that would have prevented voting, changed vote counts, or disrupted the tallying of votes. Yesterday’s action also increases pressure on previously designated the Russian financier Yevgeniy Prigozhin by targeting his physical assets, including three aircraft and a yacht, as well as employees of the Internet Research Agency, which Prigozhin finances.

The action targets four entities, seven individuals, three aircraft, and a yacht that are all associated with the Internet Research Agency and Prigozhin. For identification information on the designees, see BankersOnline's OFAC Update.

09/30/2019

FDIC August enforcement actions

The FDIC has released a list of administrative enforcement actions taken against banks and individuals in August (and one issued in July).

  • A Burnet, Texas, bank was ordered to pay $21,700 for a pattern or practice of flood insurance-related violations
  • A former chief financial officer of The Bank of Oswego, Lake Oswego, Oregon, was issued an adjudicated order to pay a civil money penalty of $175,000 and an order of prohibition for having approved the use of $675,000 in bank funds to pay for a customer's wire transfer and facilitating a $1.7 million loan to cover the transfer, aiding an abetting an improper straw buyer transaction involving bank-foreclosed property and failing to protect the bank's collateral position ion that property, following repeated appeals and delays caused by the former banker
  • The former president and CEO of AztecAmerica Bank, Berwyn, Illinois, consented to an order to cease and desist and and order to pay a civil money penalty of $25,000, for causing the bank to inject money into its holding company by approving payments by the bank to two of its employees for the purpose of enabling them to purchase stock in the holding company, resulting in a loss to the bank.
  • The former chief financial officer of Crown Bank, Edina Minnesota, was issued an order to cease and desist and an order to pay a $10,000 civil money penalty for assisting the former CEO of the bank in conducting and obscuring transactions in violation of Regulation O, and failing to stop or report the CEO's theft of funds from a third party's bank deposit account.
  • The former president and cashier of Commercial Bank of Oak Grove, Oak Grove, Missouri, was issued an adjudicated order to cease and desist and to pay a $15,000 civil money penalty for altering account statements of the bank's correspondent account at another bank, overstating the balance in that account, resulting in losses exceeding $500,000.

09/30/2019

NY landlord faces discrimination charges

HUD has announced it has charged a Hamburg, New York, landlord with violating the Fair Housing Act by refusing to rent to and making discriminatory statements about families with children. According to HUD’s charge, the owner of a mixed-use property, which contains two apartments, allegedly refused to rent a one-bedroom unit to an applicant because he has a son who would stay with him three times a week. HUD’s charge further alleged that the owner stated that he did not want any children living at the property, citing parking concerns.

09/27/2019

OFAC targets scheme to support Russian forces in Syria

OFAC has reported it has designated one entity, three individuals, and five vessels participating in a sanctions evasion scheme to facilitate the delivery of jet fuel to Russian forces operating in Syria. For identification of the targeted parties, see BankersOnline's OFAC Update

09/26/2019

CFPB adds to its executive team

The CFPB has announced additions to its executive team:

  • Desmond Brown will serve as the Deputy Associate Director for the Consumer Education and Engagement Division.
  • Jason Brown will serve as Assistant Director for Research.
  • Karla Carnemark will serve as the Deputy Chief of Staff
  • Ren Essene will serve as Chief Data Officer.
  • Bryan A. Schneider will serve as Associate Director in the Supervision, Enforcement and Fair Lending Division.

09/26/2019

House passes SAFE Banking Act bill

The House of Representatives approved its SAFE Banking Act bill in a bipartisan vote yesterday. The bill now goes to the Senate, where its fate is uncertain. As passed by the House, the bill would allow banks to serve cannabis-related businesses in the 33 states where marijuana is legal at some level, and prohibit federal regulators from acting against a bank solely because marijuana is involved.

09/26/2019

CFPB sues debt collection firm and subs

The CFPB announced yesterday it had filed suit against Fair Collections & Outsourcing and Michael E. Sobota, the owner and CEO of its holding company. The suit against Soboda, FCO Holding, Inc. and its subsidiaries, Fair Collections & Outsourcing, Inc., Fair Collections & Outsourcing of New England, Inc., and FCO Worldwide, Inc. alleges that FCO violated the Fair Credit Reporting Act, Regulation V and the Consumer Financial Protection Act by:

  • failing to establish or implement reasonable written policies and procedures regarding the accuracy and integrity of the information it furnished to consumer reporting companies, specifically with respect to its handling of indirect disputes;
  • failing to consider or incorporate the appropriate guidelines in developing its policies and procedures regarding the handling of indirect disputes;
  • failing to review its indirect dispute handling policies and procedures and update them as necessary to ensure their continued effectiveness;
  • failing to conduct a reasonable investigation, or any investigation, and review all relevant information in its handling of indirect disputes; and
  • furnishing information about accounts before or without conducting an investigation into the accuracy of the information it was furnishing after receiving identity theft reports from consumers disputing such accounts.

The complaint also alleges that FCO and Sobota violated the Fair Debt Collection Practices Act when FCO represented that consumers owed certain debts when, in fact, FCO did not have a reasonable basis to assert that the consumers owed those debts. The Bureau's action seeks an injunction, as well as damages, redress, disgorgement of ill-gotten gains, and the imposition of a civil money penalty.

09/26/2019

CFPB adds FAQs on EGRRCPA impact on SAFE Act

The CFPB has issued four FAQs pertaining to compliance with the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) as of November 24, 2019, the effective date of the 2018 amendments to the statute made by the EGRRCPA. The FAQs explain

  • the categories of loan originators (Registered and State-Licensed and Loan Originator with Temporary Authority) under the SAFE Act
  • where loan originators can exercise temporary authority
  • Bureau guidance on state transitional licenses
  • that the EGRRCPA amendments to the SAFE Act won't affect the permissibility of transitional licensing

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