Top Story Compliance Related

The FDIC has issued a notice of a meeting of its board of directors to be held on December 13, 2016.

HUD has introduced a new online tool that generates a snapshot of HUD’s investment at the community level. The Community Assessment Reporting Tool (CART), uses geospatial technology to show the wide variety of HUD investments by city, state, county, metropolitan area, or congressional district. It also provides an interactive mapping interface that allows users to explore HUD investments within their community and see property- and grant-level detail at a variety of geographies

The Federal Reserve Board has issued a consent order to cease and desist and assessed a civil money penalty against Customers Bank of Phoenixville, Pennsylvania. The order addresses the participation of the bank and its agent, Higher One, Inc. of New Haven, Connecticut, in deceptive practices in violation of of the Federal Trade Commission Act. Higher One provided institutions of higher education with financial aid disbursement services for students through, among other things, a deposit account and debit card product known as the "OneAccount." The deceptive practices employed by Higher One, under Customers Bank's oversight for approximately four months earned the bank a $960,000 penalty. For more information, see our December 6, 2016, penalty page.

The NCUA has announced that credit unions will have more flexibility to use the National Credit Union Administration’s Consumer Assistance Complaint portal with the expansion of portal access by an additional authorized credit union staff member. The portal allows credit unions to correspond with NCUA’s Consumer Assistance Center about complaints concerning their institutions. An FAQ was also updated to help credit unions register or request an additional user be added to user profiles.

The NCUA Board has published a final rule in today's Federal Register comprehensively amending its chartering and field of membership rules at 12 CFR Part 701 to maximize access to federal credit union services to the extent permitted by law, and to organize the rules in a more efficient framework. The amendments will implement changes in policy affecting: the definition of a local community, a rural district, and an underserved area; the chartering and expansion of a multiple common bond credit union; the expansion of a single common bond credit union that serves a trade, industry or profession; and the process for applying to charter, or to expand, a federal credit union. The amendments will be effective 60 days after publication, on February 6, 2017.

The Federal Reserve Bank of Philadelphia has posted the latest edition of Consumer Compliance Outlook. This edition features articles on subpart B of Regulation E on Remittance Transfers and the updated interagency questions and answers regarding Community Reinvestment.

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.