Skip to content

Exception Tracking Spreadsheet (TicklerTrax™)
Downloaded by more than 1,000 bankers. Free Excel spreadsheet to help you track missing and expiring documents for credit and loans, deposits, trusts, and more. Visualize your exception data in interactive charts and graphs. Provided by bank technology vendor, AccuSystems. Download TicklerTrax for free.

Click Now!


Top Story Compliance Related

01/20/2021

FAQs on SARs and other AML considerations

The FDIC, Federal Reserve Board, FinCEN, NCUA, and OCC have issued responses to frequently asked questions regarding suspicious activity reporting and other AML considerations for financial institutions that are required to submit Suspicious Activity Reports (SARs).

The answers clarify SAR/AML requirements in order to assist financial institutions with their compliance obligations and enable them to focus resources on activities that produce the greatest value to law enforcement agencies and other government users of Bank Secrecy Act (BSA) reporting.

The FAQs address the following topics:

  • requests by law enforcement to maintain accounts
  • receipt of grand jury subpoenas and law enforcement inquiries
  • maintaining customer relationships following the filing of SARs
  • filing SARs based on negative news media searches
  • information provided in SAR data and narrative fields
  • SAR character limits

The FAQs neither alter existing BSA/AML requirements, nor establish new supervisory expectations.

01/20/2021

FDIC revises appeals guidelines

The FDIC Board has adopted revised Guidelines for Appeals of Material Supervisory Determinations. The revised guidelines are intended to enhance the independence of appeals decisions and to clarify the procedures and timeframes that apply to appeals when the FDIC is taking a formal enforcement action. The revised guidelines generally replace the existing Supervision Appeals Review Committee (SARC) with an independent, standalone office within the FDIC, known as the Office of Supervisory Appeals (Office). The revised guidelines will take effect when the Office is fully operational; the current guidelines will remain in effect until that time. The FDIC will publish a notice to inform institutions when this occurs. Chairman McWilliams issued a statement on the changes.

01/20/2021

OCC Community Development Investments Newsletter

The OCC has published the latest edition of its Community Developments Investments newsletter, “Strengthening Communities With Opportunity Zone Investments.” This edition of Community Developments Investments explains how banks can support distressed communities by making investments in tax-advantaged qualified opportunity funds (QOF) as part of their community development strategies. For example, the newsletter highlights transactions in which a national bank created and sponsored its own QOF. The newsletter also highlights banks that invested in QOFs sponsored by third-party intermediaries. The newsletter discusses tools that banks can use to evaluate the social and economic benefits created by QOF-financed projects in designated opportunity zones.

01/20/2021

Fed updates capital planning requirements

The Federal Reserve Board has announced a final rule that updates the Board's capital planning requirements to be consistent with other Board rules that were recently modified. The final rule is generally similar to the proposal. In 2019, the Board finalized a framework that sorts large banks into different categories based on their risks, with requirements that are tailored to the risks of each category. The Board's capital planning requirements for these large banks help ensure they plan for and determine their capital needs under a range of different scenarios.

The rule finalized yesterday reflects that new framework. In particular, firms in the lowest risk category are on a two-year stress test cycle and not subject to company-run stress test requirements. In a change from the proposal, the final rule applies capital planning requirements to large savings and loan holding companies that are not predominantly engaged in insurance or commercial activities.

The rule will become effective 60 days after publication in the Federal Register.

01/20/2021

OFAC targets Venezuelan oil sector sanctions evaders

The Treasury Department announced yesterday that OFAC has designated three individuals, fourteen entities, and six vessels for their ties to a network attempting to evade United States sanctions on Venezuela’s oil sector. The principal actors designated include Alessandro Bazzoni, Francisco Javier D’Agostino Casado, Philipp Paul Vartan Apikian, Elemento Ltd, and Swissoil Trading SA. Also designated were nine entities owned or controlled by Bazzoni, D’Agostino, or Elemento, and a number of maritime entities and vessels.

For additional information on the targets of OFAC's action and other designations made by the State Department, see BankersOnline's OFAC Update.

01/20/2021

Agencies issue final rules on supervisory guidance

The CFPB, FDIC, NCUA and the OCC have each issued a final rule that codifies the Interagency Statement Clarifying the Role of Supervisory Guidance issued on September 11, 2018 by the OCC, Federal Reserve Board, FDIC, NCUA and the CFPB. By codifying the 2018 Statement, with amendments, the final rule confirms that the OCC, FDIC, and Bureau will continue to follow and respect the limits of administrative law in carrying out their supervisory responsibilities.

Unlike a law or regulation, supervisory guidance does not have the force and effect of law and the agencies not take enforcement actions or issue supervisory criticisms based on non-compliance with supervisory guidance. Rather, supervisory guidance outlines supervisory expectations and priorities, or articulates views regarding appropriate practices for a given subject area.

In contrast to supervisory guidance, regulations do have the force and effect of law and enforcement actions can be taken if regulated institutions are in violation. Regulations are also generally required to go through the notice and comment process.

01/20/2021

FinCEN reopens comment period on CVC/LTDA proposal

On January 15, FinCEN published [86 FR 3897] a supplemental notice of proposed rulemaking on recordkeeping and reporting of certain transactions involving convertible virtual currency (“CVC”) or digital assets with legal tender status (“legal tender digital assets” or “LTDA”), identifying additional authority for its proposed rule published on December 23, 2020, providing additional information regarding the reporting form, and reopening the comment period.

FinCEN is providing an additional 17 days (through 2/1/2021) for comments on the proposed reporting requirements regarding information on CVC or LTDA transactions greater than $10,000, or aggregating to greater than $10,000, that involve unhosted wallets or wallets hosted in a jurisdiction identified by FinCEN. FinCEN is providing an additional 45 days (through 3/1/2021) for comments on the proposed requirements that banks and MSBs report certain information regarding counterparties to transactions by their hosted wallet customers, and on the proposed recordkeeping requirements.

In the supplemental notice, FinCEN said that a final rule implementing the proposed reporting requirements would be effective 30 days after its publication, except that the requirement to report counterparty information (if adopted) would not take effect for 60 days.

01/20/2021

FinCEN submits renewal of recordkeeping requirement

FinCEN has published at 86 FR 6411 in the January 21 Federal Register a notice and request for comments for the proposed renewal, without change, of its currently approved recordkeeping requirement for the issuance or sale of bank checks and drafts, cashier’s checks, money orders, and traveler’s checks when the issuance or sale involves the use of currency in an amount between $3,000 and $10,000, inclusive. Although no changes are proposed to the information collection itself, the request for comments covers a future expansion of the scope of the annual hourly burden and cost estimate associated with these regulations.

Comments will be accepted for 60 days, through March 22, 2021.

01/19/2021

Bureau sues 1st Alliance Lending

The CFPB announced on Friday it has filled a lawsuit against 1st Alliance Lending, LLC, John Christopher DiIorio, Kevin Robert St. Lawrence, and Socrates Aramburu for allegedly engaging in various unlawful mortgage-lending practices. 1st Alliance, based in Hartford, Connecticut, originated residential mortgages from 2004 to September 2019 and stopped operating in November 2019. DiIorio was its chief executive officer and he, St. Lawrence, and Aramburu were 1st Alliance’s three managing executives.

The Bureau alleges that 1st Alliance, with DiIorio’s, St. Lawrence’s, and Aramburu’s participation, knowledge, and direction, violated the Truth in Lending Act, the Fair Credit Reporting Act, the Equal Credit Opportunity Act, the Mortgage Acts and Practices—Advertising Rule, and the Consumer Financial Protection Act of 2010. The Bureau’s complaint, filed in the United States District Court for the District of Connecticut, seeks injunctions against the defendants, as well as damages, redress to consumers, disgorgement of ill-gotten gains, and the imposition of civil money penalties.

01/19/2021

Capital One to pay $390M for BSA/AML violations

The Financial Crimes Enforcement Network (FinCEN) has announced that Capital One, National Association, has been assessed a $390,000,000 civil money penalty for engaging in both willful and negligent violations of the Bank Secrecy Act and its implementing regulations. FinCEN determined and Capital One admitted to willfully failing to implement and maintain an effective anti-money laundering program. Capital One also admitted that it willfully failed to file thousands of Suspicious Activity Reports and negligently failed to file thousands of Currency Transaction Reports with respect to a particular business unit known as the Check Cashing Group.

The violations occurred from at least 2008 through 2014, and caused millions of dollars in suspicious transactions to go unreported in a timely and accurate manner, including proceeds connected to organized crime, tax evasion, fraud, and other financial crimes laundered through the bank into the U.S. financial system. Capital One admitted to the facts set forth by FinCEN and acknowledged that its conduct violated the BSA and regulations codified at 31 C.F.R. Chapter X.

For additional information, see "Capital One, NA, pays $390M for BSA violations".

Pages

Training View All

Penalties View All

Search Top Stories