Top Story Compliance Related

The SEC has announced that a whistleblower has been awarded approximately $3.5 million for coming forward with information that led to an SEC enforcement action. The SEC’s whistleblower program has now awarded approximately $135 million to 36 whistleblowers since issuing its first award in 2012. SEC enforcement actions from whistleblower tips have resulted in more than $874 million in financial remedies.

In remarks at the Georgetown University Law Center, Comptroller Curry announced that the OCC will consider applications from financial technology (fintech) companies to become special purpose national banks. The Comptroller explained that considering fintech charter applications provides businesses a choice without creating a requirement to seek a charter. Companies that seek a charter are evaluated to ensure they have a reasonable chance of success, appropriate risk management, effective consumer protection, and strong capital and liquidity. In addition, the OCC has published a paper discussing the issues and conditions that the agency will consider in granting special purpose national bank charters. Comments regarding the decision and the paper may be submitted through January 15, 2017.

In response to North Korea’s September 2016 nuclear test, ongoing prohibited development of weapons of mass destruction (WMD), and continued violations of United Nations Security Council resolutions (UNSCRs), the U.S. Department of the Treasury has announced that its Office of Foreign Assets Control (OFAC) has designated 16 entities and seven individuals for their ties to the Government of North Korea or its nuclear and weapons proliferation efforts and identified 16 aircraft blocked as property of a designated entity. The targets include individuals and companies from North Korea's transportation, mining, energy and financial services industries. As a result of this action, any property or interests in property of the designated persons in the possession or control of U.S. persons or within the United States must be blocked. Additionally, U.S. persons are generally prohibited from engaging in transactions involving the designated persons and listed aircraft.

For additional information on these actions, see our OFAC Update.

The OCC has issued its first quarter 2017 CRA evaluation schedule.

The FDIC has issued a list of 47 state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). Six were rated outstanding, 40 satisfactory, and one needs to improve.

The CFPB has announced on the Bureau Blog the fall semiannual update of its rulemaking agenda. The items listed included:

• Know Before You Owe (TRID) mortgage disclosure rule (reviewing comments on proposed revisions)
• HMDA (working on proposed fine-tuning amendments to 2018 HMDA rule)
• Larger participants and non-depository lender registration (ongoing)
• Arbitration (reviewing comments on proposed rule)
• Payday, auto title, and similar lending products (reviewing comments on proposed rule)
• Debt collection (potential proposed rule for debt collectors soon; ongoing study on need for rule for first-party collectors
• Overdraft services (under research)
• Reporting under ECOA of info on credit applications from women-owned, minority-owned and small businesses (outreach and research)

The Federal Emergency Management Agency has published two final rules identifying communities that are scheduled for suspension from the National Flood Insurance Program.

• A rule at 81 FR 87467, with a suspension date of December 22, 2016, affects communities in Polk County, Florida; McKean County, Pennsylvania; Cheatham, Dickson and Wiliamson counties in Tennessee; Sedgwick and Summer counties in Kansas; and Carson City, Nevada.
• A rule at 81 FR 87470, with a suspension date of December 8, 2016, affects communities in Walton County, Georgia; Brown County, Indiana; Benton and Linn counties in Oregon; and Richland and Vernon counties in Wisconsin.

The Office of the Comptroller of the Currency has released a list of Community Reinvestment Act (CRA) performance evaluations that became public during November. The list contains only national banks, federal savings associations, and insured federal branches of foreign banks that have received ratings. The possible ratings are outstanding, satisfactory, needs to improve, and substantial noncompliance. Of the 30 evaluations listed, six are rated outstanding and 24 are rated satisfactory.

The FDIC has released the public list of institutions that it has scheduled for a Community Reinvestment Act (CRA) examination during the first quarter of 2017. This list is required by revised CRA regulations published in May 1995 that require each federal bank and thrift regulator to publish a quarterly CRA examination schedule at least 30 days before the beginning of each quarter.

The 2016 annual report of the CFPB Ombudsman’s Office has been released and discussed on the Bureau Blog. The report summarizes the office's activities during fiscal year 2016. It includes a description of how the office works in practice, including newly designed materials to inform stakeholders about its resources. It also includes a section with examples that demonstrate work in practice, an analysis of the individual inquiries received this year, and a recap of the Ombudsman Forum with national and regional consumer-focused organizations.