Top Story Compliance Related

Treasury has announced that CSE TransTel Pte. Ltd. (“TransTel”), a wholly-owned subsidiary of the international technology group CSE Global Limited, both of which are located in Singapore, has agreed to pay $12,027,066 to settle its potential civil liability for 104 apparent violations of the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations.

Between on or about June 4, 2012, and on or about March 27, 2013, TransTel caused at least six separate financial institutions to engage in the unauthorized exportation or re-exportation of financial services from the United States to Iran by originating 104 U.S. Dollar wire transfers involving Iran and totaling more than $11,000,000 through the United States. OFAC determined that TransTel did not voluntarily self-disclose the apparent violations to OFAC, and that the apparent violations constitute an egregious case.

The NCUA will host a webinar on August 16 to help credit unions learn about the service’s training resources on regulatory, operational and strategic subjects. The free webinar, “Small Credit Union Learning Management Service,” will begin at 2 p.m. ET.

FinCEN has announced the assessment of civil money penalties in the amounts of $110 million against BTC-e a/k/a Canton Business Corporation and $12 million against Alexander Vinnik, for violations of the Bank Secrecy Act. BTC-e and Vinnik have been indicted in the Northern District of California for money laundering, conspiracy to commit money laundering, engaging in unlawful monetary transactions, and the operation of an unlicensed money transmitting business. The agency said that BTC-e operated a virtual currency exchange for facilitating ransomware and Dark Net drug sales. This was FinCEN's first enforcement action against a foreign-located MSB.

• Order for CMP assessment

FDIC FIL-31-2017, issued yesterday, announced the agency's update of its Risk Management Manual of Examination Policies. The Report of Examination Instructions were updated primarily to incorporate guidance from the FDIC Board of Directors to examiners regarding supervisory recommendations, including matters requiring board attention (MRBA) and deviations from safety and soundness principles underlying statements of policy, among others. Instructions also were added for new Report of Examination schedules or updated for existing schedules as needed.

The FDIC has issued FIL-32-2017 to highlight actions that banks should take to prepare for the change in the Securities Exchange Commission's (SEC) rule governing the securities settlement cycle for securities transactions conducted by most broker-dealers. The SEC rule changes the three-day settlement requirement in effect for decades to require settlement for most such transactions in two days. The effective date for the change is September 5, 2017.

The Federal Reserve Board has issued a statement that. in view of realized and expected labor market conditions and inflation, the Federal Open Market Committee decided Wednesday to maintain the target range for the federal funds rate at 1 to 1-1/4 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2 percent inflation.

Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 13 current or former senior officials of the Venezuelan Government pursuant to Executive Order (E.O.) 13692, which authorizes sanctions against officials of the Government of Venezuela and others undermining democracy there. The sanctions come ahead of the planned July 30, 2017, election orchestrated by Venezuelan President Nicolas Maduro of a National Constituent Assembly (Asamblea Nacional Constituyente, or ANC) that will have the power to rewrite the Venezuelan constitution and may choose to dissolve Venezuelan state institutions. For identification of the individuals sanctioned, see our OFAC Update.

The September 2017 open and closed meetings of the NCUA Board have been rescheduled to September 28, beginning at 10 a.m. ET.

New and updated Frequently Asked Questions regarding Cuba Assets Control Regulations have been issued by OFAC in a follow-up to the president’s June 16, 2017, announcement of changes in the administration's policy on relations with Cuba.

The U.S. House of Representatives voted 231 to 190 yesterday to nullify the CFPB's final Arbitration Rule, acting under Congressional Review Act authority to reject new federal regulations within 60 legislative days of their publication. If the Senate also votes to overturn the Bureau's rule and the Joint Resolution is agreed to by President Trump, the Arbitration Rule will be scrubbed, and the Bureau will be barred from issuing a similar rule without enabling legislation.