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Top Story Compliance Related


Communities suspended from NFIP

FEMA has published [85 FR 52052, August 24, 2020] a rule identifying communities in Louisiana and Washington that were scheduled for suspension from the National Flood Insurance Program on August 19, 2020, for failure to comply with the floodplain management requirements of the program. If any of the listed communities was able to document that it had adopted the required floodplain management measures by the August 19 date, it was not suspended.

  • Louisiana: Calvin, Jonesboro, and Winnfield
  • Washington: Bellevue, Black Diamond, Burien, Carnation, Covington, Duvall, Enumclaw, Federal Way, Issaquah, Kent, Kirkland, Lake Forest Park, Normandy Park, North Bend, Pacific, Redmond, Renton, Seatac, Seattle, Shoreline. Sykomish, Snoqualmie, Tukwila, and unincorporated areas of King County.


Syrian officials and military leaders sanctioned

OFAC has taken action against the Syrian presidential office and the Syrian Ba’ath Party through its designations of two senior members of the Syrian government—Assad’s top press officer and a prominent member of the Syrian Ba’ath Party. These designations, under the authority of Executive Order 13573, target both individuals for their roles as senior Government of Syria officials.

In addition, the State Department has designated four individuals leading Syrian military units for their efforts to prevent a ceasefire in Syria.

For identification details on the six sanctioned individuals, see BankersOnline's OFAC Update.


TD Bank in $122M settlement for OD fee and FCRA violations

The CFPB announced yesterday a settlement with TD Bank, N.A., regarding its marketing and sale of its optional overdraft service, Debit Card Advance (DCA). TD Bank operates about 1,250 locations throughout much of the eastern part of the country. The Bureau found that TD Bank’s overdraft enrollment practices violated the Electronic Fund Transfer Act and Regulation E by charging consumers overdraft fees for ATM and one-time debit card transactions without obtaining their affirmative consent, and that TD Bank engaged in deceptive and abusive acts or practices in violation of the Consumer Financial Protection Act of 2010.

The Bureau also found that TD Bank engaged in practices prohibited by the Fair Credit Reporting Act and its implementing Regulation V.

The consent order requires TD Bank to provide an estimated $97 million in restitution to about 1.42 million consumers and to pay a civil money penalty of $25 million. For addition information and to access the Bureau's Consent Order, see BankersOnline's penalty pages entry.


CFPB extends comment period

The CFPB has announced that it will extend the comment period on its Request for Information on how best to create a regulatory environment that expands access to credit and ensures that all consumers and communities are protected from discrimination in all aspects of a credit transaction. Comments will be accepted for an additional 60 days, through December 1, 2020.


Iranian airline suppliers designated

OFAC has announced its designation of UAE-based Parthia Cargo and Delta Parts Supply FZC for their material support of Iranian airline Mahan Air. OFAC is also designating UAE-based Iranian national Amin Mahdavi for owning or controlling Parthia Cargo. Together, these companies have provided key parts and logistics services for Mahan Air, which is designated under counterterrorism authorities for support to Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), as well as under a counter proliferation authority that targets weapons of mass destruction proliferators and their supporters.

For identification information on the companies and individual designated by OFAC, see BankersOnline's OFAC Update.


FinCEN statement on BSA enforcement

On August 14, we reported on a joint statement from the federal banking regulatory agencies on Enforcement of Bank Secrecy Act/Anti-Money Laundering Requirements. In their announcements of the joint statement, the agencies reported that FinCEN had issued a Statement on Enforcement of the Bank Secrecy Act. FinCEN released its statement yesterday (August 18).

FinCEN's Statement on Enforcement of the Bank Secrecy Act was issued to provide clarity and transparency to FinCEN's approach when considering compliance or enforcement actions against covered financial institutions that violate the BSA. The statement outlines the administrative actions available to FinCEN, and provides an overview of the information FinCEN analyzes in order to determine the appropriate outcome to violations of the BSA.

In its announcement, FinCEN encouraged financial institutions to voluntarily and promptly report violations, and to candidly and completely cooperate with any investigation.


OFAC sanctions Ugandan adoption scammers

The Treasury Department reports that OFAC has sanctioned four Ugandans -- Ugandan judges Moses Mukiibi and Wilson Musalu Musene, Ugandan lawyer Dorah Mirembe, and Mirembe’s husband, Patrick Ecobu -- under authority of Executive Order 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act, for their involvement in an adoption scam that saw many Uganda-born children and their parents victimized by the participants in the scheme.

As a result of OFAC's action, all property and interests in property of the individuals named above, and of any entities that are owned, directly or indirectly, 50 percent or more by them, individually, or with other blocked persons, that are in the United States or in the possession or control of U.S. persons, are blocked and must be reported to OFAC. For identification information on the four designated Ugandan nationals, see our BankersOnline OFAC Update.


Federal Reserve updates fingerprinting process for applications

The Federal Reserve Board's Supervision and Regulation Letter SR 20-20, issued Friday, describes its new process to facilitate the electronic collection and transmission of fingerprints to the Federal Bureau of Investigation in connection with background investigations for applications involving changes to the ownership and/or composition of the board of directors or executive management of supervised financial institutions.

The Federal Reserve will continue to request from other regulatory and investigative agencies background information about an individual or company involved in applications through the name check process. Since 2003, the Federal Reserve's background investigation process has included an FBI criminal history check through the submission of fingerprints. The Federal Reserve recently started using a third-party vendor to facilitate the electronic collection and transmission of fingerprints to the FBI. Electronic fingerprinting is a more efficient collection method than the previous card and ink process. Benefits associated with the new process include faster fingerprint processing time, cost savings, and reduced staff burden. In addition, applicants will benefit from a significantly increased number of fingerprint collection sites, and improved scheduling flexibility.


Joint statement on BSA/AML enforcement

The federal banking agencies have issued a Joint Statement on Enforcement of Banks Secrecy Act/Anti-Money Laundering Requirements updating their existing enforcement guidance to enhance transparency regarding how they evaluate enforcement actions that are required by statute when financial institutions fail to meet Bank Secrecy Act/anti-money laundering (BSA/AML) obligations.

The statement clarifies that isolated or technical violations or deficiencies are generally not considered the kinds of problems that would result in an enforcement action. It also addresses how the agencies evaluate violations of individual components (known as pillars) of the BSA/AML compliance program. It also describes how the agencies incorporate the customer due diligence regulations and recordkeeping requirements issued by the U.S. Department of the Treasury as part of the internal controls pillar of the financial institution's BSA/AML compliance program.



Fed issues Outstanding CRA rating

Our review of the Federal Reserve Board's Community Reinvestment Act Evaluations and Ratings Search page has revealed that the Federal Reserve Banks made public their ratings of five CRA evaluations in July. Four of the evaluations were rated "Satisfactory." Congratulations to Banco Popular de Puerto Rico, San Juan, on its "Outstanding" rating!


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