Top Story Compliance Related

OFAC has announced that BCC Corporate SA ("BCCC") has settled potential liability for apparent violations of the Cuban Assets Control Regulations. BCCC is a Belgium-based credit card issuer and corporate service company that issues various payment products, such as credit cards, to its European-based corporate customers. At the time of the apparent violations, BCCC was a wholly owned subsidiary of Alpha Card Group, which in turn was owned 50 percent by American Express Company (AMEX), a U.S. financial institution. AMEX has agreed to remit $204,277 to settle potential civil liability for 1,818 apparent violations of the Cuban Assets Control Regulations.

OFAC has published an FAQ concerning humanitarian assistance to the people of Iran following the November 12, 2017, earthquake.

The Financial Crimes Enforcement Network (FinCEN) has announced an $8 million civil money penalty against Artichoke Joe’s, a California corporation, doing business as Artichoke Joe’s Casino (AJC), in San Bruno, California. AJC, one of the largest card clubs in the state, was found to have willfully violated U.S. anti-money laundering (AML) laws from October 2009 to November 2017. During this 8-year period, AJC failed to implement and maintain an effective AML program, and failed to detect, deter, and timely report many suspicious transactions, reported FinCEN. The $8,000,000 penalty is due by December 15, 2017.

According to FinCEN's announcement, AJC "turned a blind eye to loan sharking, suspicious transfers of high-value gaming chips, and flagrant criminal activity that occurred in plain sight." For more information, see "Artichoke Joe's Casino to pay $8M BSA/AML CMP" in BankersOnline's Penalties pages

UPDATE, 5/4/2018: On May 3, 2018, FinCEN rescinded and replaced this order. See our May 4, 2018, Top Story for details.

The Consumer Financial Protection Bureau published its final rule, "Payday, Vehicle Title, and Certain High-Cost Installment Loans," at 82 FR 54472 in today's Federal Register. The rule is to become effective January 16, 2018, with most sections carrying a compliance date of August 19, 2019. Today's publication will start the 60-legislative-day period under the Congressional Review Act during which Congress can nullify the rule with a joint resolution approved by the president.

The OCC has issued a news release announcing new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations.

• A savings and loan association in Pascagoula, Mississippi, was ordered to pay a civil money penalty (CMP) of $35,000 to the National Flood Insurance Program for a pattern or practice of violations of the Flood Act and its implementing regulations relating to the requirement to purchase flood insurance when available and to the forced placement of flood insurance.
• Three former officials of a failed Texas bank were ordered to pay CMPs totaling $203,000; two of those officials were issued prohibition orders.
• The former vice president and head bookkeeper of a Lebanon, Kentucky, bank was assessed a $5,000 CMP and issued an order of prohibition for concealing a shortfall in the bank's cashier's check account and for making unauthorized transfers from customer accounts to the cashier's check account in further efforts to conceal the shortfall.
• The former head teller of Minnesota bank was issued an order of prohibition, having been found to have misappropriated approximately $81,501 from customers' accounts at the bank and to have made false entries into bank records (she made full restitution, plus interest).
• The former regional president of a Meridian, Mississippi, bank was issued a prohibition order for obtaining a loan by forging the name of a bank customer, resulting in the charge-off of $72,000 (some of which has been repaid).

The CFPB has published a Federal Register notice [82 FR 53481] announcing that the ceiling on allowable charges assessed by credit reporting agencies for making a disclosure to a consumer under the Fair Credit Reporting Act (FCRA) will remain unchanged at $12.00, effective for 2018.

FDIC FIL-59-2107 announces a teleconference to discuss small business resources and research pertinent to community banks, including the Money Smart for Small Businesses financial education program; the FDIC's Small Business Lending Survey; and Community Reinvestment Act consideration for small business lending, services, and investments. The teleconference is scheduled for December 12, 2017, from 2:00 p.m. to 3:30 p.m. EST.

OCC Bulletin 2017-54, issued yesterday, announced the revision of the “Branches and Relocations” booklet of the Comptroller's Licensing Manual. The revised booklet incorporates branching and relocation procedures and requirements updated following the integration of the functions of the Office of Thrift Supervision into the OCC in 2011 and the issuance of revised regulations (12 CFR part 5) that became effective July 1, 2015, addressing branching and relocations for both national banks and federal savings associations (FSA).

The Federal Reserve Board has posted links to the semiannual update of its Bank Holding Company Supervision Manual.

According to reports in The Washington Post and other major outlets, CFPB Director Richard Cordray has informed the Bureau's employees that he intends to step down as head of the CFPB by the end of November. His term expires in July 2018.