Top Story Compliance Related

OFAC has announced the removal of an entity with an SDNTK designation from the SDN list. See our OFAC update for the details. OFAC also published a new Kingpin Act/Panama-related General License.

The FDIC has released the ratings received by 67 state nonmember banks recently evaluated for compliance with the Community Reinvestment Act. Three of the banks were rated outstanding, 63 were found to be satisfactory, and one obtained a needs to improve rating.

The Federal Reserve Board has announced it has approved an advance notice of proposed rulemaking (ANPR) inviting comment on conceptual frameworks for capital standards that could apply to systemically important insurance companies and to insurance companies that own a bank or thrift. The Board also approved a proposed rule that would apply enhanced prudential standards to systemically important insurance companies designated by the Financial Stability Oversight Council.

Update: The ANPR on Capital Requirements for Supervised Institutions Significantly Engaged in Insurance Activities was published at 81 FR 38631 on June 14, 2016. Comments are due August 17, 2016. The proposed rule on Enhanced Prudential Standards for Systemically Important Insurance Companies was published at 81 FR 38610 on June 14, 2016. Comments are due August 17, 2016.

Update: On 7/25/16, the Board announced an extension of the comment period through September 16, 2016.

The OCC has released a list of the CRA evaluation ratings received by 21 national banks and federal savings associations that became public during May. Five received an outstanding rating, fifteen were rated satisfactory and one garnered a needs to improve rating.

OFAC has announced the designation of two pro-government officials, Marius Ngendabanka and Ignace Sibomana, and one member of an armed opposition group, Edouard Nshimirimana, for engaging in actions or policies that threaten the peace, security, or stability of Burundi. See our OFAC Update for additional information

The SEC has announced an order charging Albert Fried & Company, a Wall Street based brokerage firm, with failing to sufficiently evaluate or monitor customers’ trading for suspicious activity as required under the federal securities laws. An SEC investigation found the firm failed to file SARs for more than five years despite red flags tied to its customers’ high-volume liquidations of low-priced securities. The firm agreed to pay a $300,000 CMP to settle the charges.

• SEC order

The OCC has released its schedule of Community Reinvestment Act (CRA) evaluations to be conducted in the third quarter of 2016.

The OCC will host two workshops in Sioux Falls, South Dakota, at the Sheraton Sioux Falls & Convention Center, July 19-20, for directors of national community banks and federal savings associations. The Compliance Risk workshop on July 19 combines lectures, discussion, and exercises on the critical elements of an effective compliance risk management program. Topics of discussion include the Bank Secrecy Act, Community Reinvestment Act, and the Truth-in-Lending (TILA) and the Real Estate Settlement Procedures Act of 1974 (RESPA) Integrated Disclosures Rule, also known as TRID. The Operational Risk workshop on July 20 focuses on the key components of operational risk—people, processes and systems. The workshop also covers governance, third-party risk, vendor management, and cybersecurity.

The Treasury Department is calling for Large Position Reports from those entities whose positions in the 1-5/8% Treasury Notes of May 2026 equaled or exceeded $2.3 billion as of close of business Monday, May 16, 2016. This call for reports is a test. Entities with positions in this note equal to or exceeding the $2.3 billion threshold must report these positions to the Federal Reserve Bank of New York. Reports must be received by the Government Securities Dealer Statistics Unit of the Federal Reserve Bank of New York before 5:00 PM ET on June 8, 2016, and must include the required position and administrative information.

HUD has announced that an Administrative Law Judge has ruled against a northern Minnesota landlord charged with refusing to rent an apartment to prospective tenants because of their disabilities. Landlord Deane Woodard of Detroit Lakes, Minnesota, was ordered to pay $27,000 to one woman, a $16,000 civil penalty, and $1,000 in other court sanctions.