Top Story Compliance Related

Continuing their efforts to reduce data reporting and other burdens for small financial institutions, the three federal banking agencies, as members of the FFIEC, are proposing additional revisions to streamline several "Call Report" schedules. The latest proposal from the FRB FDIC, and OCC will remove, raise the reporting threshold for, or reduce the reporting frequency of approximately seven percent of the data items on the Call Report for small institutions, and make other burden-reducing changes for larger institutions, while continuing to provide the agencies with the information needed to supervise the industry. The proposal also includes revisions in response to changes in the accounting for equity securities and an instructional revision for determining past-due status.

Update: The proposal was published [82 FR 29147] June 27, 2017, with a 62-day comment period ending August 28, 2017.

The FRB, FDIC, and OCC have announced the availability of the 2017 list of distressed or underserved nonmetropolitan middle-income geographies, where revitalization or stabilization activities are eligible to receive Community Reinvestment Act (CRA) consideration under the community development definition. The criteria for designating these areas are available on the Federal Financial Institutions Examination Council (FFIEC) CRA page.

A joint press release from the FRB, FDIC, and the OCC announced yesterday the issuance of the host state loan-to-deposit ratios that the agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. In general, section 109 prohibits a bank from establishing or acquiring a branch or branches outside of its home state primarily for the purpose of deposit production. Section 109 also prohibits branches of banks controlled by out-of-state bank holding companies from operating primarily for the purpose of deposit production.

The Federal Reserve Bank of Philadelphia has released the first 2017 issue of Consumer Compliance Outlook. Featured articles include:

• Combating Elder Financial Abuse
• Understanding Finance Charges for Closed-End Credit
• Implementing the New Uniform Interagency Consumer Compliance Rating System

Yesterday, OFAC posted a number of removals from and updates to its SDN List. See our OFAC Update for identification information.

The U.S. Department of the Treasury’s Office of Foreign Assets Control announced yesterday it had reinforced existing sanctions on Russia by designating or identifying a range of individuals and entities involved in the ongoing conflict under four Executive orders (E.O.s) related to Russia and Ukraine. This action was designed in part to provide additional information to assist the private sector with sanctions compliance. U.S. sanctions on Russia related to the situation in eastern Ukraine will remain in place until Russia fully honors its obligations under the Minsk Agreements. U.S. sanctions related to Crimea will not be lifted until Russia ends its occupation of the peninsula.

OFAC designated 38 individuals and entities under Ukraine-related authorities, including one entity that has engaged in the evasion of existing sanctions, two Russian government officials and two individuals acting for or on behalf of a government official, two entities that are owned or controlled by an individual previously designated, and 11 individuals and entities that operate in the Crimea region of Ukraine.

As a result of OFAC's actions, any property or interest in property of the designated persons in the possession or control of U.S. persons or within the United States must be blocked. Additionally, transactions by U.S. persons involving these persons are generally prohibited.

OFAC also identified 20 subsidiaries that are owned 50 percent or more by the previously-designated AK Transneft OAO (Transneft), subject to Directive 2 under E.O. 13662, which prohibits U.S. persons from dealing in new debt of greater than 90 days maturity of the sanctioned entities.

See BankersOnline's OFAC Update for identification information on the individuals and entities involved.

The Federal Trade Commission has released the agenda and list of confirmed speakers for its upcoming workshop, The "2017 Military Consumer Financial Workshop: Protecting Those Who Protect Our Nation," to be held in San Antonio, Texas on July 19, 2017.

OCC Bulletin 2017-23, issued yesterday, announces the OCC's release of the “Articles of Association, Charter, and Bylaw Amendments” booklet of the Comptroller’s Licensing Manual. This new booklet consolidates the OCC’s policies and procedures regarding articles of association amendments for national banks, charter amendments for federal savings associations, and bylaw amendments for national banks and federal savings associations. The booklet—

• addresses regulatory requirements for articles of association, charters, and bylaws
• provides an overview of the filing process required to notify the OCC, or, if necessary, to obtain OCC approval, of an amendment
• includes certain requirements for the content of the articles of association, charters, and bylaws
• lists actions or steps a national bank or federal savings association should follow during the amendment process
• lists references and links to informational resources and sample documents that national banks or federal savings associations may refer to during the amendment process

The OCC has announced its Office of Innovation will host Office Hours for national banks, federal savings associations, and financial technology companies, July 24–26, at the OCC’s district office in New York City. Office Hours provide an opportunity for meetings with OCC officials to discuss financial technology, new products or services, partnering with a bank or fintech company, or other matters related to financial innovation. OCC staff will provide feedback and respond to questions. Each meeting will be no longer than one hour. Interested parties may request a session through July 5, and are asked to provide information on why they are interested in meeting with the OCC. Specific meeting times and arrangements will be determined after the OCC receives and accepts the request.

The Federal Deposit Insurance Corporation (FDIC) has appointed M. Anthony Lowe to the post of FDIC Ombudsman and Director of the Office of the Ombudsman. The Ombudsman's office interacts extensively with bankers, other industry representatives, community groups, and members of the public to answer questions and hear concerns about FDIC policies and regulations. The office serves as both a resource and a liaison to facilitate the resolution of issues with financial institutions fairly and impartially.