Top Story Compliance Related

OFAC has designated 37 individuals and entities under three Executive Orders (E.O.s) related to Russia and Ukraine. The action is part of OFAC’s ongoing efforts to counter attempts to circumvent sanctions on Russia, to assist the private sector with sanctions compliance, and to foster a diplomatic resolution to the conflict in Ukraine. These sanctions follow the recent extension of European Union sectoral sanctions, and together these steps demonstrate continued international unity in opposing Russia’s actions in Ukraine. Included in the entities added at a number of subsidiaries that are owned 50 percent or more by previously sanctioned Russian companies to provide additional information to assist the private sector with sanctions compliance.

The list includes a number of subsidiaries of Bank of Moscow, Gazprom and Gasprombank, each of which has been sanctioned since July 2014. Each of those subsidiaries is subject to the same sanctions as those imposed on its parent organization.

OFAC also issued a general license to authorize certain transactions for a limited period of time necessary to divest holdings in Mostotrest.

For additional information, see our OFAC Update.

The NCUA has announced it issued five notices of prohibition in August. The affected individuals, who had previously been convicted of crimes of dishonesty, are prohibited from participating in the affairs of any federally insured financial institution. They are former employees or institution-affiliated parties of:

• Portland Maine Police Department Federal Credit Union in Portland, Maine;
• Oshkosh Central Credit Union in Oshkosh, Wisconsin;
• HD York Federal Credit Union in York, Pennsylvania;
• Oil Country Federal Credit Union in Titusville, Pennsylvania; and
• Morehead Community Federal Credit Union in Morehead, Kentucky.

The FDIC has posted the public list of institutions that it has scheduled for a Community Reinvestment Act (CRA) examination during the fourth quarter of 2016. The list is published pursuant to revised CRA regulations published in May 1995 that require each federal bank and thrift regulator to publish a quarterly CRA examination schedule at least 30 days before the beginning of each quarter.

The Federal Trade Commission has published a final rule at 81 FR 59845 in the Federal Register, amending section 310.8 of its Telemarketing Sales Rule (16 CFR Part 310) to update the fees charged to entities accessing the National Do Not Call Registry. The amendment will be effective October 1, 2016.

The Office of Foreign Assets Control has posted a Specially Designated Nationals List Update adding a Somalian national to the SDN List as a Specially Designated Global Terrorist. See our OFAC Update for further information.

The CFPB has released its monthly complaint snapshot, this time highlighting consumer complaints about bank accounts and services. The report shows that consumers continue to experience problems managing their accounts. This month’s report also highlights trends seen in complaints coming from Ohio.

Treasury and the federal banking agencies have issued a joint fact sheet on foreign correspondent banking that outlines supervisory and enforcement processes with respect to anti-money laundering and sanctions in the area of correspondent banking. The report indicates that about 95% of BSA/OFAC compliance deficiencies identified by the regulators are corrected by the institution’s management without the need for any enforcement action or penalty. Treasury also posted a blog article, "Complementary Goals - Protecting the Financial System from Abuse and Expanding Access to the Financial System," about the joint agency report.

The Summer 2016 issue of Money Smart News has been posted by the FDIC, featuring articles on enhancements for small business; an easier way to join the Money Smart Alliance; tips on cybersecurity for bank customers; a discussion of mobile business and modernization of the payment system; and lending practices in financial education for postsecondary students. English and Spanish versions are available.

The Federal Trade Commission requests public comment on its Standards for Safeguarding Customer Information (16 CFR Part 314, the “Safeguards Rule”). The Rule, which took effect in 2003, requires financial institutions to develop, implement and maintain a comprehensive information security program for handling customer information. The Commission seeks comments on a number of questions, including the economic impact and benefits of the Rule; possible conflict between the Rule and state, local or other federal laws or regulations; and the effect on the Rule of any technological, economic or other industry changes. The comment deadline is November 7, 2016.

Update: Published at 81 FR 61632 on 9/7/2016.
Update: The FTC extended the comment period deadline to November 21, 2016, with a notice published on 11/15/2016.

The Federal Reserve Board has announced it has issued a notice of intent seeking a $1.2 million civil money penalty and a permanent ban on employment in the banking industry in an enforcement action against Christopher Ashton, a foreign exchange (FX) trader at Barclays PLC who is alleged to have manipulated FX pricing benchmarks. The trader is alleged to have used electronic chat rooms to coordinate FX trading, facilitate manipulation of FX pricing benchmarks, disclose confidential customer information to traders at other organizations, and engage in other unsafe and unsound practices.