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Top Story Compliance Related

07/09/2020

Amazon settles with OFAC

OFAC has announced a $134,523 settlement with Amazon.co​m, Inc. to settle Amazon's potential civil liability for apparent violations of multiple OFAC sanctions programs.

As a result of deficiencies related to Amazon’s sanctions screening processes, Amazon provided goods and services to persons sanctioned by OFAC; to persons located in the sanctioned region or countries of Crimea, Iran, and Syria; and to individuals located in or employed by the foreign missions of countries sanctioned by OFAC. Amazon also failed to timely report several hundred transactions conducted pursuant to a general license issued by OFAC that included a mandatory reporting requirement, thereby nullifying that authorization with respect to those transactions. The settlement amount reflects OFAC’s determination that Amazon’s apparent violations were non-egregious and voluntarily self-disclosed, and further reflects the significant remedial measures implemented by Amazon upon discovery of the apparent violations.​​

07/08/2020

FATF report on stablecoins

At the request of the G20, the FATF has issued a "Report on So-Called Stablecoins" that sets out the FATF’s views on stablecoins and addresses:

  • the characteristics of stablecoins
  • the money laundering and terrorist financing risks of stablecoins
  • how the FATF Standards apply to stablecoins and the different businesses involved in the stablecoin; and
  • how the FATF plans to enhance the global anti-money laundering and counter-terrorism financing framework for virtual assets and stablecoins.

07/08/2020

FinCEN COVID-19 scams advisory

FinCEN has issued Advisory FIN-2020-A003 to alert financial institutions to potential indicators of imposter scams and money mule schemes, which are two forms of consumer fraud observed during the COVID-19 pandemic. The advisory contains descriptions of these scams and schemes, financial red flag indicators for both, and information on reporting suspicious activity.

07/08/2020

Final rule on small dollar lending issued

The CFPB has issued a final rule amending its Payday, Vehicle Title, and Certain High-Cost Installment Loans regulations at 12 CFR part 1041. The final rule, which will be effective 90 days after its Federal Register publication, rescinds the mandatory underwriting provisions of the 2017 rule but does not rescind or alter the payments provisions of the 2017 rule.

The Bureau had received a petition to commence a rulemaking to exclude debit and prepaid cards from the payments provisions of the small dollar lending rule, and the agency has denied that petition. The Bureau has also issued guidance clarifying the payments provisions’ scope and assisting lenders in complying with those provisions. In addition, today the Bureau released a ratification of the payment provisions in light of the Supreme Court’s recent decision in Seila Law. Although the payments provisions are currently stayed by court order, the Bureau will seek to have them go into effect with a reasonable period for entities to come into compliance.

07/08/2020

Bureau ratifies prior regulatory actions

The CFPB has reported it has issued a ratification of the large majority of its existing regulations and certain other actions, to provide the financial marketplace with certainty that the rules are valid in light of the Supreme Court decision in Seila Law. The ratification relates back to the original date of each identified action.

07/07/2020

Consumer Financial Protection Week announced

The Bureau has announced the launch of Consumer Financial Protection Week, which will take place from July 14–17, 2020. During the week, activities will focus on how the CFPB is protecting consumers in the financial marketplace, the issues consumers are confronting, and how consumers can communicate to the Bureau any issues they may have with a financial services provider.

07/03/2020

FDIC releases CRA evaluations

The FDIC has issued its list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in April 2020. Of the 86 institutions listed, 75 were rated satisfactory, eight received an outstanding rating, and three were rated needs to improve.

The eight institutions garnering outstanding ratings are (links are to their evaluation reports):

07/03/2020

OCC CRA evaluations released

The OCC has released CRA evaluations for 21 national banks and federal savings associations that became public in June. Of the 21 evaluations, 11 are rated satisfactory, nine are rated outstanding, and one is rated needs to improve.

The nine institutions with outstanding ratings are (with links to their evaluation reports):

07/03/2020

CFPB proposes EGRRCPA-required HPML escrow exemption

The CFPB has issued a notice of proposed rulemaking that would amend Regulation Z to provide a new exemption available to certain insured depository institutions and insured credit unions from the requirement to establish escrow accounts for certain higher-priced mortgage loans (HPMLs), to implement an amendment to Regulation Z made by section 108 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).

The proposed amendment generally would exempt from the Regulation Z HPML escrow requirement any loan made by an insured depository institution or insured credit union and secured by a first lien on the principal dwelling of a consumer if

  • the institution has assets of $10 billion or less;
  • the institution and its affiliates originated 1,000 or fewer loans secured by a first lien on a principal dwelling during the preceding calendar year;
  • the institution meets the requirement in § 1026.35(b)(2)(iii)(A) relating to making a covered transaction secured by a first lien on a property located in a "rural" or "underserved" area; and
  • the institution and its affiliates do not maintain an escrow account other than those established for HPMLs at a time when the creditor may have been required by the regulation to do so or those established after consummation as an accommodation to distresses consumers.

Comments on the proposal will be accepted for 60 days following Federal Register publication.

07/03/2020

West Virginia bank pays flood insurance penalty

The Federal Reserve Board has announced a civil money penalty of $24,500 has been assessed against Putnam County Bank, Hurricane, Virginia, in connection with the Bank's pattern or practice of unspecified violations of Regulation H, 12 CFR § 208.25, which implements the requirements of the National Flood Insurance Act.

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