Skip to content

How to gain more from operational risk management practices. Modern risk management technology solutions improve efficiency and provide greater visibility into risks. Today’s tools provide real-time visibility, action plans, enhanced reporting and business intelligence, and proactive notifications for operational risk. Real-time data empowers banks and financial services organizations to proactively manage risks and instantly detect and mitigate emerging issues. Click here to learn more.


Top Story Compliance Related

12/11/2019

University of Phoenix pays $191M to settle charges

The Federal Trade Commission has announced the University of Phoenix and its parent company, Apollo Education Group, will settle for a record $191 million to resolve FTC charges that they used deceptive advertisements that falsely touted their relationships and job opportunities with companies such as AT&T, Yahoo!, Microsoft, Twitter, and The American Red Cross. Under the settlement, the university will pay $50 million in cash and cancel $141 million in debts owed to the school by students who were harmed by the deceptive ads. A complaint filed by the Commission alleged that the university and Apollo relied heavily on advertising to attract students, including specific ads that targeted military and Hispanic consumers. The companies’ ads featured employers such as Microsoft, Twitter, Adobe, and Yahoo!, giving the false impression that the university worked with those companies to create job opportunities for its students and tailor its curriculum for such jobs.

12/11/2019

Retirees distribution deadline reminder

The Internal Revenue Service reminds retirees born before July 1, 1949, that they usually must take distributions from their retirement plans by December 31. The payments, called required minimum distributions (RMDs), are normally made by the end of the year. Those who turned 70½ in 2019 are allowed to wait until April 1, 2020, to take their first RMDs. The special April 1 deadline only applies to the RMD for the first year. For all subsequent years, the RMD must be made by December 31. For example, a taxpayer who turned 70½ in 2018 and received the first RMD on April 1, 2019, must receive a second RMD by December 31, 2019. The required distribution rules apply to:

  • Owners of traditional Individual Retirement Arrangements (IRAs)
  • Owners of traditional Simplified Employee Pension (SEP) IRAs
  • Owners of Savings Incentive Match Plans for Employees (SIMPLE) IRAs
  • Participants in various workplace retirement plans, including 401(k), 403(b) and 457(b) plans

12/11/2019

Blanco addresses enforcement conference

Kenneth A. Blanco, Director of the Financial Crimes Enforcement Network (FinCEN), spoke at the American Bankers Association/American Bar Association (ABA/ABA) Financial Crimes Enforcement Conference on December 10, 2019. He addressed how FinCEN uses BSA data, particularly as it relates to filings involving convertible virtual currency; the status of FinCEN’s BSA Value Project; the importance of beneficial ownership information; FinCEN’s ongoing federal banking agency working group efforts; and some significant organizational changes within FinCEN.

In his discussion of beneficial ownership information, Blanco said that there is more work to be done in that arena, and that collecting beneficial ownership information at the corporate formation stage is the next criitical step. He said that FinCEN is committed to working with key stakeholders, including Congress, to find effective, sensible solutions to address this serious and growing gap in our national security.

12/11/2019

NMLS renewal period ends soon

The NMLS has posted a reminder that the annual renewal period for registered mortgage loan originators (MLOs) (organizations and individuals) ends December 31. Failure to renew an institution's registration may impact its MLOs’ ability to engage in mortgage loan origination activity, just as failures of individual MLOs to complete their renewal process will prevent them from legally acting in that role after year-end. For complete information, visit the Renew-Reactivate page of the NMLS Federal Registry Resource Center.

12/11/2019

FDIC updates Compliance Examination Manual

The FDIC has updated its Consumer Compliance Examination Manual to add new section X-6.1 on Disclosure Requirements for Sweep Accounts, to include examination procedures for FDIC Part 360.8(e), which requires consumer disclosures for sweep account transactions to inform whether the swept funds are deposits.

12/11/2019

OFAC targets indviduals for human rights abuses

Yesterday, on International Human Rights Day, OFAC took action against 18 individuals located in Burma, Pakistan, Libya, Slovakia, Democratic Republic of the Congo, and South Sudan for their roles in serious human rights abuse. Additionally, six entities were designated for being owned or controlled by one of the designated individuals. OFAC designated these individuals and entities under E.O. 13818 and the Global Magnitsky Human Rights Accountability Act, which target perpetrators of serious human rights abuse and corruption.

As a result of yesterday’s action, all property and interests in property of the designated individuals, 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. Unless authorized by a general or specific license issued by OFAC or otherwise exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.

The names and identifying information for the individuals and entities targeted in OFAC's action can be found in this BankersOnline OFAC Update.

12/11/2019

OFAC adds two new Venezuela-related FAQs

OFAC has published two new Venezuela-related FAQs asking about filing lawsuits against a person designated or blocked under the Venezuela sanctions program and selling shares of a Government of Venezuela entity held under a writ of attachment.

12/10/2019

ADR broker-dealer to pay $3.9M

The Securities and Exchange Commission has announced that broker-dealer Jefferies LLC will pay nearly $4 million to settle charges of improper handling of "pre-released" American Depositary Receipts, which are U.S. securities that represent foreign shares of a foreign company, and require a corresponding number of foreign shares to be held in custody at a depositary bank. The SEC’s order finds that Jefferies improperly borrowed pre-released ADRs from other brokers when Jefferies should have known that those brokers did not own the foreign shares needed to support those ADRs. The order also asserts that Jefferies failed to reasonably supervise its securities lending desk personnel concerning borrowing pre-released ADRs from these brokers.

Without admitting or denying the SEC’s findings, Jefferies agreed to disgorge more than $2.2 million in ill-gotten gains and pay over $468,000 in prejudgment interest and a $1.25 million penalty for total monetary relief of $3.918 million.

12/10/2019

COPPA Rule comment period extended

The Federal Trade Commission is extending the deadline to submit comments on the agency’s review of the Children’s Online Privacy Protection Act Rule (COPPA Rule) until December 11, 2019. The federal government’s Regulations.gov portal is temporarily inaccessible. The FTC is giving commenters additional time to submit comments, as well as an alternative mechanism to file them. Those unable to submit comments via Regulations.gov can submit them via email with the subject line “COPPA comment” to secretary@ftc.gov. All comments, whether filed through Regulations.gov or sent by email, must be submitted by11:59 p.m. ET on December 11, 2019.

12/10/2019

OCC on key risks for federal banking system

The OCC's National Risk Committee has issued its Semiannual Risk Perspective for Fall 2019, which indicates operational, credit, and interest rate risks are among the key themes for the federal banking system. Report highlights include:

  • Operational risk is elevated as banks adapt to a changing and increasingly complex operating environment. Key drivers elevating operational risk include the need to adapt and evolve current technology systems for ongoing cybersecurity threats.
  • Credit risk has accumulated in many portfolios. Banks should prepare for a cyclical change while credit performance remains strong. Preparation includes maintaining robust credit control functions, particularly credit review, problem loan identification and workout, collections, and collateral management.
  • Recent volatility in market rates has led to increasing levels of interest rate risk. The complexity of asset/liability management is exacerbated by the recent yield curve inversions.
  • The London InterBank Offered Rate (Libor) will likely cease to be an active index by the end of 2021. Accordingly, the OCC is increasing regulatory oversight of this area to evaluate bank awareness and preparedness.
  • Banks face strategic risks from non-depository financial institutions, use of innovative and evolving technology, and progressive data analysis capabilities.

Pages

Training View All

Penalties View All

Search Top Stories