Top Story Compliance Related

The Treasury Department has published, in today's Federal Ledger, a final rule to adjust OFAC-enforced civil monetary penalties (“CMPs”) for inflation as mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (collectively referred to herein as “the Act”). This rule adjusts CMPs within the jurisdiction of OFAC to the maximum amount required by the Act. The rule is effective upon publication, and can be applied retroactively to violations since January 15, 2017.

As of January 15, the applicable statutory maximum civil penalty per violation for each statute enforced by OFAC is as follows:

• International Emergency Economic Powers Act (IEEPA) — greater of $289,238 or twice the amount of the underlying transaction;
• Trading with the Enemy Act (TWEA) — $85,236;
• Foreign Narcotics Kingpin Designation Act (FNKDA) — $1,437,153;
• Antiterrorism and Effective Death Penalty Act of 1996 (AEDPA) — greater of $76,351 or twice the amount of which a financial institution was required to retain possession or control; and
• Clean Diamond Trade Act (CDTA) — $13,066.

The CFPB has posted its January 2017 monthly complaint report. Each edition includes spotlight reports on a product or service and on a geographic area. The January report focuses on mortgage complaints and on complaints from Tennessee.

The NCUA has announced that the twenty-eight credit unions subject to civil monetary penalties for filing late Call Reports in the third quarter of 2016 have consented to penalties totaling $17,485.

The Federal Reserve Board has posted an update of the FRB/US model packages. The main FRB/US model package is a self-contained set of equations, data, programs and documentation that enables various types of simulations and provides information about the model's structure.

OFAC has provided four frequently asked questions (FAQS) related to the recently imposed sanctions on the Russian Federation's Federal Security Service and the issuance of General License 1 authorizing certain transactions otherwise prohibited under Executive Order (E.O.) 13694 of April 1, 2015 ("Blocking the Property of Certain Persons Engaging in Significant Malicious Cyber-Enabled Activities"), as amended by E.O. 13757 of December 28, 2016 ("Taking Additional Steps to Address the National Emergency With Respect to Significant Malicious Cyber-Enabled Activities").

The Board of Directors of the National Credit Union Administration has published [82 FR 9691] in this morning's Federal Register an "advanced [sic] notice of proposed rulemaking" (ANPR) to solicit comments on alternative forms of capital federally insured credit unions could use in meeting capital standards required by statute and regulation. Comments on the ANPR close on May 9, 2017.

HUD has announced that it is charging the landlords of a Moore, Oklahoma, rental home with violating the Fair Housing Act by denying the reasonable accommodation requests of their tenant, a veteran with disabilities, for waiver of pet fees for his dog, an emotional support animal. The Fair Housing Act prohibits housing providers from denying or limiting housing to persons with disabilities, or from refusing to make reasonable accommodations in policies or practices for people with disabilities. This includes waiving pet fees for persons with disabilities who use assistance animals.

The White House has released a statement by Acting OMB Director Mark Sandy regarding the recent executive order directing the Secretary of the Treasury to take steps to review the authorities and policies governing the regulation of the U.S. financial system and to report to the President regarding the reform of such regulation: "Implementing this executive order would have a de minimis impact on costs and revenues to the Federal Government. It would have a de minimis impact on mandatory and discretionary obligations and outlays, as well as on revenues to the Federal Government, in the 5-fiscal year period beginning in fiscal year 2017. The agencies anticipated to be impacted by this executive order include the Department of the Treasury and member agencies of the Financial Stability Oversight Council."

The CFPB and the New York Attorney General have announced they have filed a complaint in the U.S. District Court for the Southern District of New York against RD Legal Funding, LLC, two related entities, and Roni Dersovitz, the companies’ founder and owner, for allegedly scamming 9/11 heroes out of money intended to cover medical costs, lost income, and other critical needs. RD Legal also allegedly conned National Football League (NFL) concussion victims. The complaint also asserts that the transactions are loans at usurious rates under New York law, and therefore void. CFPB Director Cordray also delivered prepared remarks in a press call regarding the complaint.

The FDIC has released the economic scenarios that will be used by certain financial institutions with total consolidated assets of more than $10 billion for stress tests required under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The baseline, adverse, and severely adverse scenarios include key variables that reflect economic activity, including unemployment, exchange rates, prices, income, interest rates, and other salient aspects of the economy and financial markets.