Skip to content

How to gain more from operational risk management practices.
Modern risk management technology solutions improve efficiency and provide greater visibility into risks. Today’s tools provide real-time visibility, action plans, enhanced reporting and business intelligence, and proactive notifications for operational risk. Real-time data empowers banks and financial services organizations to proactively manage risks and instantly detect and mitigate emerging issues. Click here to learn more.


Top Story Compliance Related

02/24/2020

FTC issues ECOA report

The Federal Trade Commission has announced it has provided the Consumer Financial Protection Bureau (CFPB) with its annual summary of its efforts in enforcing the Equal Credit Opportunity Act (ECOA).

The Commission is responsible for ECOA enforcement and education regarding most non-bank financial service providers. In its summary, FTC staff describes the Commission’s work on ECOA-related issues, including activities addressed in research and policy development.

02/24/2020

Interagency Community Reinvestment Conference [postponed]

The Federal Reserve Board, FDIC, and OCC will host the 2020 National Interagency Community Reinvestment Conference in Denver from March 9 to 12. This biennial conference offers participants from around the country the opportunity to learn about the Community Reinvestment Act and to discuss best practices and emerging challenges in community development. The 2020 program will feature discussions regarding innovations in community development policies and practice, CRA examination training, and community development tours of Denver.

UPDATE: On March 5, 2020, the agencies announced this conference has been postponed due to concerns over the coronavirus (COVID-19) outbreak. No date was announced for the rescheduled conference.

02/24/2020

Treasury reports on FATF Plenary

Treasury has announced that the Financial Action Task Force has released guidance on digital identity for customer identification and verification, and evaluated Treasury’s Customer Due Diligence rule for compliance with the FATF standards. The FATF also called on all jurisdictions to impose effective countermeasures on Iran, such as requiring financial institutions to review, amend, or if necessary terminate correspondent relationships with Iranian banks or limiting business relationships or financial transactions with Iran. The countermeasures should be developed and implemented to protect the international financial system from the ongoing money laundering, terrorist financing, and proliferation financing (ML/TF/PF) risks emanating from Iran.

02/24/2020

Wells Fargo to pay $3 Billion for sales conduct

On February 21, the U.S. Department of Justice announced that Wells Fargo & Company (San Francisco, CA) and its subsidiary, Wells Fargo Bank, N.A. (Sioux Falls, SD) have agreed to pay $3 billion to resolve their potential criminal and civil liability stemming from a practice between 2002 and 2016 of pressuring employees to meet unrealistic sales goals that led thousands of employees to provide millions of accounts or products to customers under false pretenses or without consent, often by creating false records or misusing customers’ identities.

As part of the agreements with the United States Attorney’s Offices for the Central District of California and the Western District of North Carolina, the Commercial Litigation Branch of the Civil Division, and the Securities and Exchange Commission, Wells Fargo admitted that it collected millions of dollars in fees and interest to which the Company was not entitled, harmed the credit ratings of certain customers, and unlawfully misused customers’ sensitive personal information, including customers’ means of identification.

The criminal investigation into false bank records and identity theft is being resolved with a deferred prosecution agreement in which Wells Fargo will not be prosecuted during the three-year term of the agreement if it abides by certain conditions, including continuing to cooperate with further government investigations. Wells Fargo also entered a civil settlement agreement under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) based on Wells Fargo’s creation of false bank records. FIRREA authorizes the federal government to seek civil penalties against financial institutions that violate various predicate criminal offenses, including false bank records. Wells Fargo also agreed to the SEC instituting a cease-and-desist proceeding finding violations of Section 10(b) of the Exchange Act and SEC Rule 10b-5, which make it illegal for anybody to directly or indirectly use any measure to defraud, make false statements, omit relevant information, or otherwise conduct business operations that would deceive another person in the process of conducting transactions involving stock and other securities. The $3 billion payment resolves all three matters, and includes a $500 million civil penalty to be distributed by the SEC to investors.

02/21/2020

OCC releases enforcement actions

The OCC has released a list of new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with such institutions. The actions listed are dated from late December 2019 to early February 2020.

In addition to actions separately reported previously, the OCC listed removal/prohibition orders against a former teller at CIT Bank, N.A., Pasadena, California (misappropriation of cash from her teller drawer); a former head teller supervisor at Midland Federal Savings and Loan Association, Bridgeview, Illinois (misappropriation of vault cash and making false entries); a former teller at U.S. Bank, N.A., Cincinnati, Ohio (misappropriation of cash from her teller drawer and making false cash total entries); and a former teller at JPMorgan Chase Bank, N.A., Columbus, Ohio (misappropriation of cash from ATMs for which she was the custodian).

Also listed were three notices of charges that may result in orders of prohibition, orders for reimbursement, orders for civil money penalties and/or other actions, one of which notices was directed to five former officials of Wells Fargo Bank, N.A., Sioux Falls, South Dakota, in connection with charges that the former officials participated in or were responsible for "sales practices misconduct" at Wells Fargo Bank. The notice states the Comptroller's intention to assess civil money penalties of between $500,000 and $25,000,000 against the five former officials and to issue orders of prohibition to two of them.

02/21/2020

CFPB and two states sue loan brokers

The Consumer Financial Protection Bureau has announced that the Bureau, the South Carolina Department of Consumer Affairs, and Arkansas Attorney General Leslie Rutledge have filed a lawsuit in federal district court in the District of South Carolina against Candy Kern-Fuller, Howard Sutter III, and Upstate Law Group LLC. The Bureau alleges that the defendants worked with a series of companies that brokered contracts offering high-interest credit to consumers, primarily disabled veterans, and violated the Consumer Financial Protection Act’s prohibition against deceptive acts or practices and against providing substantial assistance to deceptive and unfair acts or practices of others.

02/21/2020

OFAC designates senior Iranian officials

OFAC has taken action against five members of Iran’s Guardian Council and its Elections Supervision Committee, which are appointed by Iran’s Supreme Leader or his appointees. The Supreme Leader uses his appointees to deprive the Iranian people of free and fair elections by blocking candidates that do not mirror his radical views. For identification information, see BankersOnline's OFAC Update.

02/20/2020

OFAC posts Iran-related designations

OFAC has posted a sanctions program action notice announcing its designation of five individuals under Iran-related Executive Order 13876.

The following individuals have been added to OFAC's SDN List:

JANNATI, Ahmad, Iran; DOB 22 Feb 1927; POB Ladan, Isfahan, Iran; nationality Iran; Additional Sanctions Information - Subject to Secondary Sanctions; Gender Male (individual) [IRAN-EO13876].

KADKHODAEI, Abbas Ali (a.k.a. KADKHODAEE, Abbas Ali; a.k.a. KADKHODAEI ELYADERANI, Abbas Ali; a.k.a. KADKHODAEI, Abbasali; a.k.a. KADKHODAI, Abbas Ali; a.k.a. KADKHODA'I, Abbas Ali), Iran; DOB 1961; alt. DOB 1962; POB Isfahan, Iran; nationality Iran; Additional Sanctions Information - Subject to Secondary Sanctions; Gender Male (individual) [IRAN-EO13876].

RAHPEYK, Siamak (a.k.a. RAHPEYK, Siyamak; a.k.a. RAH-PEYK, Siyamak; a.k.a. RAHPIEK, Siamak), Iran; DOB 1963; alt. DOB 1964; POB Tehran, Iran; nationality Iran; Additional Sanctions Information - Subject to Secondary Sanctions; Gender Male (individual) [IRAN-EO13876].

SADEGHI MOGHADAM, Mohammad Hasan (a.k.a. SADEGHI MOGHADAM, Mohammad Hassan; a.k.a. SADEGHI MOGHADDAM, Mohammad Hasan; a.k.a. SADEGHI MOHAMMAD, Mohammad; a.k.a. SADEQI-MOQADAM, Mohammad Hassan; a.k.a. SADEQI-MOQADDAM, Mohammad Hasan), Iran; DOB 1958; alt. DOB 1959; POB Jahrom, Iran; nationality Iran; Additional Sanctions Information - Subject to Secondary Sanctions; Gender Male (individual) [IRAN-EO13876].

YAZDI, Mohammad, Iran; DOB 02 Jul 1931; alt. DOB 1931; alt. DOB 1932; POB Isfahan, Iran; nationality Iran; Additional Sanctions Information - Subject to Secondary Sanctions; Gender Male (individual) [IRAN-EO13876].

02/20/2020

FDIC requests input on modernizing signage and ad requirements

The FDIC has announced that it is seeking the public's input on potential modernization of its signage and advertising requirements to better reflect how banks and savings associations currently operate and how consumers use banking services. Banks are transforming their business models to take deposits via physical branches, digital, and mobile banking channels.

Given the changes in the marketplace since the FDIC last significantly updated these rules in 2006, the FDIC is gathering public input from a broad range of stakeholders about how it might revise and clarify its official sign and advertising rules to reflect the changes and support the industry's efforts to understand, apply, and comply with the FDIC's rules.

Comments on the FDIC's Request for Information must be received by March 19, 2020.

UPDATE: Published on February 26, 2020, at 85 FR 10997. On March 11, 2020, the FDIC announced that the comment period has been extended through April 20, 2020.

02/20/2020

FDIC Advisory Committee of State Regulators announced

The FDIC has announced the selection of 15 members for its recently established Advisory Committee of State Regulators. The FDIC Board of Directors approved the formation of the new Advisory Committee on November 19, 2019, as another mechanism for state regulators and the FDIC to discuss a variety of current and emerging issues that have potential implications for the regulation and supervision of state-chartered financial institutions. The Advisory Committee members include the following regulators of state-chartered financial institutions from across the United States as well as other individuals with expertise in the regulation of state-chartered financial institutions:

  • Bret Afdahl, Director, Division of Banking, State of South Dakota
  • Kevin R. Allard, Superintendent, Division of Financial Institutions, State of Ohio
  • Charles G. Cooper, Commissioner, Department of Banking, State of Texas
  • Thomas C. Fite, Director, Department of Financial Institutions, State of Indiana
  • Mary L. Gallagher, Commissioner of Banks, Commonwealth of Massachusetts
  • Greg Gonzales, Commissioner, Department of Financial Institutions, State of Tennessee
  • Ray Grace, Commissioner of Banks, State of North Carolina
  • Kevin B. Hagler, Commissioner, Department of Banking and Finance, State of Georgia
  • Melanie G. Hall, Commissioner, Division of Banking and Financial Institutions, State of Montana
  • Dawn E. Holstein, Commissioner of Banking, Division of Financial Institutions, State of West Virginia
  • Lise Kruse, Commissioner, Department of Financial Institutions, State of North Dakota
  • G. Edward Leary, Commissioner, Department of Financial Institutions, State of Utah
  • John Ryan, President and Chief Executive Officer, Conference of State Bank Supervisors
  • Antonio P. Salazar, Commissioner, Office of the Commissioner of Financial Regulation, State of Maryland
  • Mick Thompson, Commissioner, Banking Department, State of Oklahoma

Pages

Training View All

Penalties View All

Search Top Stories