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OFAC has added Mohammad Yusuf Shah, an individual alternatively described as an Indian and Pakistani national residing in Kashmir, to its list of Specially Designated Global Terrorists. For additional identity information, including several aliases, see our OFAC Update.

The Treasury Department has announced that American International Group, Inc. (AIG) of New York, NY, an international insurance and financial services organization incorporated in Delaware and headquartered in New York, has agreed to remit $148,698 to settle its potential civil liability for 555 apparent violations of OFAC sanctions programs — the Iranian Transactions and Sanctions Regulations; the Weapons of Mass Destruction Proliferators Sanctions Regulations; the Sudanese Sanctions Regulations; and the Cuban Assets Control Regulations. OFAC determined that AIG voluntarily self-disclosed the Apparent Violations, and that the apparent violations constitute a non-egregious case. For more details see our Penalty page.

A release from the June 21-23, 2017, plenary meeting of the Financial Action Task Force (FATF) reports that the main issues dealt with at the meeting included:

• Work on combating terrorist financing, which remains a priority for the FATF
• Work on improving transparency and beneficial ownership
• Adoption of the Report to the G20 Leaders’ Summit
• Impact of recent FATF work on de-risking
• Discussion of the mutual evaluation reports of Denmark and Ireland
• Statement on Brazil’s progress in addressing the deficiencies identified in its mutual evaluation reports, since the FATF’s statement of February 2017
• Two public documents identifying jurisdictions that may pose a risk to the international financial system:
  • Jurisdictions with strategic anti-money laundering and countering the financing of terrorism (AML/CFT) deficiencies for which a call for action applies, including an update on Iran’s engagement with FATF
  • Jurisdictions with strategic AML/CFT deficiencies for which they have developed an action plan with the FATF, including an update on AML/CFT improvements in Afghanistan and Lao PDR
• Adoption of a revision to the interpretative note to Recommendation 7 (Targeted Financial Sanctions Related to Proliferation)
• Proposals to strengthen FATF’s institutional basis, governance and capacity
• Outcomes of the meeting of the FATF Forum of Heads of Financial Intelligence Units, that was held in the margins of the Plenary
• Update on the activities of the FATF Training and Research Institute in Busan, Korea

The OCC will host a Building Blocks for Directors workshop in Lexington, Kentucky, at the Griffin Gate Marriott, August 7-9, for directors, senior management team members and other key executives of OCC-supervised institutions. The workshop combines lectures, discussion, and exercises to provide practical information on the roles and responsibilities of board participation. The workshop focuses on duties and core responsibilities of directors and management, discusses major laws and regulations, and increases familiarity with the examination process.

As the Fed gradually steers the discount rate higher, it has to make some adjustments in the rate tables in Regulation A (Extensions of Credit by Federal Reserve Banks) and Regulation D (Reserve Requirements of Depository Institutions). The Fed published final rules in today's Federal Register making those adjustments again:

• Regulation A—Amendments to § 201.51 (Interest rates applicable to credit extended by a Federal Reserve Bank), effective today, with the rate changes effective June 15, 2017.
• Regulation D—Amendments to § 204.10(b)(5) (Rates for Interest on Required Reserves and Interest on Excess Reserves), effective today, with rate changes effective June 15, 2017.

BankersOnline's Regulations pages will be updated today.

FDIC Chairman Gruenberg issued a statement in testimony before the Senate Committee on Banking, Housing and Urban Affairs which began with an overview of the banking industry's recovery since the financial crisis and its current condition. He then discussed the FDIC's efforts to streamline and simplify banking regulations and supervisory programs to reduce regulatory burden, particularly for community banks, while preserving the gains that have been achieved in restoring financial stability and the safety and soundness of the U.S. banking industry. The Chairman said the experience of the crisis and its aftermath suggests that a strong and well-capitalized banking system is a source of strength and support to our national economy. The reforms implemented in the post-crisis period have been aimed at making the system more resilient to the effects of future crises or recessions and better able to sustain credit availability throughout the business cycle. It is desirable that financial regulations be simple and straightforward, and that regulatory burdens and costs be minimized, particularly for smaller institutions. In considering ways to simplify or streamline regulations, however, it is important to preserve the gains that have been achieved in restoring financial stability and the safety and soundness of the U.S. banking system.

In an oral statement and written testimony before the Senate Committee on Banking, Housing, and Urban Affairs, Acting Comptroller of the Currency Keith A. Noreika discussed two ways to promote economic growth and reduce regulatory burden, while ensuring proper oversight of the federal banking system. The first issue involves reducing regulatory redundancy that results in waste, increased burden, and hinders economic growth. The second relates to tailoring regulations to fit the size, complexity, and risk of regulated institutions.

The Federal Emergency Management Agency published a final rule [82 FR 28565] in today's Federal Register announcing the suspension, effective July 5, 2017, of Community 300139 (Unincorporated areas of Carbon County, Montana) from the National Flood Insurance Program for noncompliance with the floodplain management requirements of the program.

In connection with its public event on student loan servicing in Raleigh, North Carolina, today, the Consumer Financial Protection Bureau has released a report spotlighting complaints from borrowers about student loan servicers mishandling Public Service Loan Forgiveness. The Public Service Loan Forgiveness program provides people in public service jobs with a path to debt forgiveness after 10 years, with the first borrowers eligible in October 2017. According to the Bureau's press release, Borrowers report that servicers delay or deny access to loan forgiveness through wrong information about their loans, flawed payment processing, and bungled job certifications. The CFPB also issued updated guidelines to prioritize oversight of servicers’ administration of the Public Service Loan Forgiveness program. The Bureau also launched a “Certify Your Service” campaign to help public servants stay on track for federal loan forgiveness.

The NCUA has released the video of its May 25, 2017, board meeting.