Top Story Compliance Related

The federal bank regulatory agencies have announced the annual adjustment to the asset-size thresholds used to define small bank, small savings association, intermediate small bank, and intermediate small savings association under the Community Reinvestment Act (CRA) regulations. As a result of the 2.11 percent increase in the CPI-W for the period ending in November 2017, the definitions of small and intermediate small institutions for CRA examinations will change, effective January 1, 2018, as follows:

• "Small bank" or "small savings association" means an institution that, as of December 31 of either of the prior two calendar years, had assets of less than $1.252 billion.
• "Intermediate small bank" or "intermediate small savings association" means a small institution with assets of at least $313 million as of December 31 of both of the prior two calendar years and less than $1.252 billion as of December 31 of either of the prior two calendar years.

Following on the heels of its publication yesterday of its Magnitsky Act Sanctions regulations, OFAC has announced a new Executive Order Blocking the Property of Persons Involved in Serious Human Rights Abuses and Corruption, and releasing new FAQs. It also added a number of Global Magnitsky designations (labeled "GLOMAG"). For identification of the individuals and entities targeted in those designations, see our OFAC Update.

OFAC has announced the Magnitsky Act Sanctions Regulations, 31 CFR Part 584, pursuant to the Sergei Magnitsky Rule of Law Accountability Act of 2012, Public Law 112-208. These regulations take effect today, with publication in the Federal Register. In addition, the names of five individuals have been added to the OFAC SDN List under the new sanctions. For the names and identification information of the individuals, see our OFAC Update.

The CFPB has emailed institutions that participated in beta testing of the Bureau's HMDA Platform reminding them that the beta period will close on December 31, as the Bureau transitions to the filing period beginning January 1, 2018, for HMDA data collecting in 2017. All test accounts and test data from the beta period will be removed to complete the transition. In order to complete a submission during the filing period, users will need to create a new account at https://ffiec.cfpb.gov on or after January 1, 2018. The Bureau encourages financial institutions to continue providing feedback on their experience using the HMDA Platform and to direct any questions regarding the HMDA Platform to HMDAHelp@cfpb.gov.

The Financial Action Task Force (FATF) has issued a follow-up report re-rating Austria as a result of the country's progress in addressing the technical compliance deficiencies identified in FATF's 2016 mutual evaluation.

OCC Bulletin 2017-61 and FDIC FIL-62-2017 have been issued regarding interagency examiner guidance for institutions affected by a disaster that results in a presidential declaration of a major disaster. The guidance also applies to institutions that may be located outside the area declared a major disaster, but have loans to or investments in individuals or entities located in such an area.

FinCEN announced on Friday it has updated its Answers to Frequently Asked Bank Secrecy Act (BSA) Questions on its website. The updates removed several outdated questions, updated references to the Code of Federal Regulations, and modified the answer to question 16 regarding how to address a current issue involving the Designation of Exempt Person (DEP) form.

The OCC has released new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations, during the months of October and November 2017. Included were two civil money penalty orders, one removal/prohibition order with restitution, one removal/prohibition order, and one cease and desist order. There were also five orders terminating existing enforcement actions.

One of the civil money penalties was issued to Citibank, N.A., Sioux Falls, SD, and its operating subsidiary CitiMortgage, Inc., in the amount of $452,000, for a pattern or practice of Flood Act violations. See our penalty page for additional information. The other civil money penalty order was issued to a former Iowa bank director for violations of Regulation O and related infractions. The former CFO and director of an Arkansas bank was banned from the industry and ordered to pay $100,000 restitution to his former bank.

Treasury has announced OFAC's designation of Okot Lukwang and Musa Hatari for facilitating the transfer of ivory, weapons, and money in support of the Lord's Resistance Army (LRA). See our OFAC Update for identification information.

The Department of Justice has announced that IBERIABANK Corporation, IBERIABANK and IBERIABANK Mortgage Company have agreed to pay the United States $11,692,149 to resolve allegations that they violated the False Claims Act by falsely certifying they were complying with Federal requirements in order to obtain insurance on mortgage loans from the Federal Housing Administration. IBERIABANK Corporation is headquartered in Lafayette, Louisiana, with branches across the Southeast, including Arkansas. From 2005 through 2014, IBERIABANK was a direct endorsement lender, and is alleged to have falsely endorsed for FHA insurance loans that were ineligible for coverage. See "IBERIABANK to pay $11.69M for false loan guarantee claims," in our Penalty pages, for more information.