Top Story Compliance Related

The Financial Action Task Force (FATF) held a roundtable on FinTech and RegTech in Paris on February 18, 2017. The session was chaired by the FATF President, Juan Manuel Vega-Serrano. The meedting was a first step to take this initiative forward in order to engage with various stakeholders. The event brought together anti-money laundering/counter-terrorist financing (AML/CFT) professionals, national supervisors, international organizations and other relevant experts, including experts from banks that have partnered with FinTech and RegTech1 firms to discuss issues of common interest.

1RegTech: A blend word created to address regulatory challenges in the financial services sector through innovative technology. RegTech comprises a group of companies that use technology to help businesses comply with regulations efficiently and inexpensively.

The NCUA has announced that it has replaced the previously announced discussion on prepaid account rules with a discussion regarding the Equal Credit Opportunity Act (ECOA) and Reg B during the regulator’s February 28, 2017, consumer compliance webinar. Prepaid account rules will be discussed in depth during a future webinar.

The Federal Trade Commission has announced it is mailing 2,031 checks totaling more than $436,000 to people who lost money to Money Now Funding, a work-at-home scheme that conned people, including many seniors with limited income and savings, into thinking they could make money by referring merchants in their area to a non-existent money-lending service.

The OCC has released new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations. Four civil money penalties, one formal agreement, five personal cease and desist orders, and one removal/prohibition order were issued. Among those announced was the January 24, 2017, $65 million CMP issued to ServiceLink Holdings, LLC, of Jacksonville, Florida. There were also orders to cease and desist and to pay a total of $55,500 issued to three former directors of a Greenville, South Carolina bank.

The Department of Defense has posted a notice on its official Military Lending Act (MLA) website that between February 9 and February 15, 2017, there was a problem with MLA Multiple Record Requests that prevented 149 request files from processing. It was suggested that those who submitted a multiple record request file in between those dates, submit the file again for processing.

In October 2016, a three-judge panel of the U.S. Court of Appeals in Washington found that the Bureau's structure is unconstitutional, and ordered that the Director of the CFPB be considered as appointed for five year but serving "at the pleasure of the president" rather than subject to removal only "for cause," as provided in § 1011(c)(3) of the Dodd-Frank Act (See "Court limits CFPB Director's independence," October 12, 2016). The CFPB appealed that ruling, suspending its effect pending the appeal. CNBC has reported that, on Thursday, February 16, the Bureau's request for a hearing by the full panel was granted. Oral arguments on the appeal are scheduled for May 24.

The OCC has issued Bulletin 2017-11 to announce the revision of the “Changes in Directors and Senior Executive Officers” booklet of the Comptroller’s Licensing Manual. The revised booklet updates procedures and requirements following the integration of the Office of Thrift Supervision into the OCC in 2011, and it incorporates revised regulations (12 CFR 5) that became effective July 1, 2015, addressing changes in directors and senior executive officers of national banks, federal savings associations, and federal branches.

OFAC has posted a notice that the names of two individuals linked to transnational criminal organizations have been deleted from the OFAC SDN List. See BankersOnline's OFAC update for the details.

The Federal Emergency Management Agency has published a final rule at 82 FR 10962 in today's Federal Register identifying communities in Colorado, Illinois and Virginia where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension today, February 17, 2017, for noncompliance with the floodplain management requirements of the program.

• Colorado—portions of Arapahoe County
• Illinois—portions of Peoria, Tazewell and Whiteside counties
• Virginia—the City of Norfolk and portions of Loudoun County

The CFPB has updated the compliance resources available on HMDA filing requirements. Added resources include a webinar discussing identifiers and other data points, and a chart that illustrates banks' options for collecting and reporting ethnicity and race information required under Regulation C.