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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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Discrimination charge for NY mobile home park

HUD has announced an order charging the owners and manager of a mobile home park in Newfield, Tompkins County, New York, who refused to allow a mother to have an assistance animal for her son, who has a mental disability, and retaliated against the family for exercising their fair housing rights. The case came to HUD’s attention when the mother of a child with mental disabilities filed a complaint alleging that the owners and manager of Shelter Valley would not allow her son to have an assistance animal.


OFAC amends reporting and penalties regulations

OFAC has published an interim final rule [84 FR 29055] amending its Reporting, Procedures and Penalties Regulation (RPPR) at 31 CFR part 501, which establish standard reporting and recordkeeping requirements and license application and other procedures relevant to the economic sanctions programs administered by OFAC. The interim rule

  • provides updated instructions and incorporates new requirements for parties filing reports on blocked property, unblocked property, or rejected transactions;
  • revises the licensing procedures section to include information regarding OFAC’s electronic license application procedures, and to provide additional instructions regarding applications for the release of blocked funds; and
  • clarifies the rules governing the availability of information under federal law, including the Freedom of Information Act (FOIA), for information that is submitted to OFAC in connection with blocking or unblocking reports, reports on rejected transactions, or license applications.

The amendments are effective June 21, 2019. Comments on the interim final rule will be accepted through July 22, 2019.


NCUA to propose another delay in risk-based capital rule

Yesterday, the National Credit Union Administration Board approved a proposed rule delaying the effective date of its risk-based capital rule to January 1, 2022. The Board first approved the risk-based rule in October 2015, but voted in 2018 to delay the effective date to January 1, 2020. Comments on the proposal will be accepted for 30 days after publication.

UPDATE: Scheduled for Federal Register publication on 6/26/2019, with comments due by 7/26/19.


IRS ETAAC committee report on ID theft and refund fraud

The IRS Electronic Tax Administration Committee (ETAAC) has released its annual report to Congress, featuring recommendations focused on the prevention of identity theft and refund fraud. The report groups a total of 10 recommendations into three sections: enabling and expanding the IRS-sponsored Security Summit, improving security in key areas of the tax system and protecting and enabling taxpayers.


IRS warning - 2 million ITINs to expire

The IRS has posted a warning that nearly two million Individual Taxpayer Identification Numbers (ITINs) are set to expire at the end of 2019 as the Internal Revenue Service continues to urge affected taxpayers to submit their renewal applications early to avoid refund delays next year. Under the Protecting Americans from Tax Hikes (PATH) Act, ITINs that have not been used on a federal tax return at least once in the last three consecutive years will expire December 31, 2019. ITINs with middle digits 83, 84, 85, 86 or 87 that have not already been renewed will also expire at the end of the year. Affected taxpayers who expect to file a tax return in 2020 must submit a renewal application as soon as possible. Additional details are available on the IRS ITIN information page.


OFAC designates Russian NBFI supporter of North Korea

Treasury has announced OFAC's designation of a Russian financial institution for assisting North Korea in evading sanctions to access the international financial system. Wednesday's action targets Russian-registered Russian Financial Society for having provided, or attempted to provide, financial, material, technological, or other support for, or goods or services in support of, U.S.-designated Dandong Zhongsheng Industry & Trade Co. Ltd, an entity that is owned and controlled by, directly or indirectly, U.S.- and UN-designated Foreign Trade Bank, North Korea’s primary foreign exchange bank.

Additional identification information for Russian Financial Society can be found in BankersOnline's OFAC Update.


Wedbush pays $8.1M for improper handling of ADRs

In the eleventh in a series of Securities and Exchange Commission actions focusing on improper handling of "pre-released" American Depositary Receipts (ADRs), the Commission has issued an Order requiring Wedbush Securities Inc. to pay more than $8.1 million to settle charges. This action brings the total monetary settlements in the series of ADR-related cases to over $422 million.


Amendments to SEC auditor independence rules

The SEC has adopted amendments to the auditor independence rules relating to the analysis that must be conducted to determine whether an auditor is independent when the auditor has a lending relationship with certain shareholders of an audit client. A fact sheet was issued as part of the Commission's press release.

The amendments will become effective 90 days after they are published in the Federal Register.


SEC requests comments on private securities offerings rules

The Securities and Exchange Commission has announced it is seeking comments on ways to simplify, harmonize, and improve the exempt offering framework to expand investment opportunities while maintaining appropriate investor protections and to promote capital formation. A staff report on the impact of Regulation Crowdfunding on capital formation and investor protection was also released. Its relevant findings are discussed in the concept release, which will be open for comments for 90 days following its publication in the Federal Register.

UPDATE: Scheduled for Federal Register publication on 6/26/19, with comments due by 9/24/19.


KPMG pays $50M to settle SEC charges

The Securities and Exchange Commission has announced it has charged KPMG LLP with altering past audit work after receiving stolen information about inspections of the firm that would be conducted by the Public Company Accounting Oversight Board (PCAOB). An SEC order also finds that numerous KPMG audit professionals cheated on internal training exams by improperly sharing answers and manipulating test results. KPMG agreed to settle the charges by paying a $50 million penalty and complying with a detailed set of undertakings, including retaining an independent consultant to review and assess the firm’s ethics and integrity controls and its compliance with various undertakings.


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