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How to add predictive analytics into your risk program. Risk reports are often limited to historical insights and issues and do not provide guidance and insights into the future of the organization. Adding predictive analytics can allow your organization to detect emerging risks and create mitigation plans. This can be achieved by combining internal and external key risk indicators (KRIs) and key performance indicators (KPIs) with regulatory intelligence. This ensures that risk reports can detect more issues and highlight areas of concern. Click here to learn more.


Top Story Compliance Related

10/15/2019

Turkish ministries and officials sanctioned

The Treasury Department announced yesterday that OFAC has taken action against two Turkish ministries and three senior Turkish government officials in response to Turkey’s military operations in Syria. The Ministry of National Defence and the Ministry of Energy and Natural Resources, as well as the Minister of National Defence, Minister of Energy and Natural Resources, and the Minister of the Interior have been blocked. Persons that engage in certain transactions with the designated persons may themselves be exposed to designation. Furthermore, any foreign financial institution that knowingly facilitates any significant financial transactions for or on behalf of the persons designated today could be subject to U.S. correspondent or payable through account sanctions.

For identifying information on the designated ministries and officials, see BankersOnline's OFAC Update.

10/15/2019

Citibank fined $30 million for OREO violations

The OCC announced on Friday a $30 million civil money penalty against Citibank, N.A., Sioux Falls, South Dakota, for violations related to the holding period for other real estate owned (OREO). Although the bank has repeatedly committed to implementing corrective actions, it has failed to do so, and violations have continued to occur.

For additional information, see "Citibank pays $30 million for OREO violations," in BankersOnline's Penalty pages.

10/15/2019

Treasury targets corruption in South Sudan

On Friday, Treasury announced that OFAC had sanctioned Ashraf Seed Ahmed Al-Cardinal and Kur Ajing Ater for their involvement in bribery, kickbacks and procurement fraud with senior government officials in South Sudan. OFAC is also designating five companies determined to be owned or controlled by Al-Cardinal, and one company owned or controlled by Ajing.

As a result of Friday’s action, all property and interests in property of the designated individuals and entities, and of any entities that are owned, directly or indirectly, 50 percent or more by them, individually, or with other designated persons, that are in the United States or in the possession or control of U.S. persons, are blocked and must be reported to OFAC.

For identification information on Al-Cardinal, Aijing, and the six entities, see BankersOnline's OFAC Update.

10/11/2019

CFPB issues final HMDA rule for relief to smaller institutions

The Consumer Financial Protection Bureau has announced its approval of a rule that finalizes certain aspects of its May 2019 Notice of Proposed Rulemaking under the Home Mortgage Disclosure Act (HMDA). It extends for two years the current temporary threshold for collecting and reporting data about open-end lines of credit under HMDA. The rule also clarifies partial exemptions from certain HMDA requirements that Congress added in the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).

The rule will be effective in two stages, on January 1, 2020, and January 1, 2022.

The CFPB intends to issue a separate final rule next year addressing changes to the permanent thresholds for closed-end and open-end transactions.

UPDATE: Published 10/29/2019.

10/11/2019

ITIN expiration alert

The IRS has issued a reminder that taxpayers with expiring Individual Taxpayer Identification Numbers (ITINs) can get their them renewed more quickly and avoid refund delays next year by submitting their renewal application now. An ITIN is a tax ID number used by taxpayers who don't qualify to get a Social Security number. Any ITIN with middle digits 83, 84, 85, 86 or 87 will expire at the end of this year. In addition, any ITIN not used on a tax return in the past three years will expire. As a reminder, ITINs with middle digits 70 through 82 that expired in 2016, 2017 or 2018 can also be renewed.

10/11/2019

FDIC guidance for institutions affected by Tropical Storm Imelda

The FDIC has posted FIL-56-2019, which provides guidance on steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Texas affected by Tropical Storm Imelda.

10/11/2019

Federal Reserve to match regs to bank risk profiles

The Federal Reserve Board has finalized rules that tailor its regulations for domestic and foreign banks to more closely match their risk profiles. The rules reduce compliance requirements for firms with less risk while maintaining the most stringent requirements for the largest and most complex banks. The rules also establish a framework that sorts banks with $100 billion or more in total assets into four different categories based on several factors, including asset size, cross-jurisdictional activity, reliance on short-term wholesale funding, nonbank assets, and off-balance sheet exposure. Significant levels of these factors result in risk and complexity to a bank and can in turn bring risk to the financial system and broader economy.

These rules will become effective 60 days after Federal Register publication.

10/11/2019

Fed announces intent to ban California banker

The Federal Reserve Board announced yesterday it has filed a Notice of Intent to prohibit and to issue a cease and desist order requiring restitution or reimbursement against Mai Ly-Vu, a former branch manager and vice president of Pacific Premier Bank, Irvine, California. If finalized, the Fed would ban her from the banking industry and require her to pay $18,700 in restitution to the bank. Ly-Vu is alleged to have engaged in unsafe or unsound banking practices and breach of fiduciary duty by failing to disclose her personal financial interests in extensions of credit by the bank to companies owned by her husband and other members of her immediate family.

10/11/2019

Members of South African corruption network sanctioned

Treasury announced yesterday that OFAC has sanctioned members of a significant corruption network in South Africa that leveraged overpayments on government contracts, bribery, and other corrupt acts to fund political contributions and influence government actions. For identification information on the four individuals sanctioned and on two updates of existing listings, see BankersOnline's OFAC Update.

10/10/2019

Executive order on agency guidance documents

On October 9, 2019, the president issued an Executive Order on "Promoting the Rule of Law Through Improved Agency Guidance Documents." The Order declares that "it is the policy of the executive branch, to the extent consistent with applicable law, to require that agencies treat guidance documents as non-binding both in law and in practice, except as incorporated into a contract, take public input into account when appropriate in formulating guidance documents, and make guidance documents readily available to the public. Agencies may impose legally binding requirements on the public only through regulations and on parties on a case-by-case basis through adjudications, and only after appropriate process, except as authorized by law or as incorporated into a contract."

The Order also provides that each affected agency or agency component "shall establish or maintain on its website a single, searchable, indexed database that contains or links to all guidance documents in effect from such agency or component."

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