Top Story Compliance Related

The OCC has issued Bulletin 2017-25 announcing the revision of the “General Policies and Procedures” booklet of the Comptroller’s Licensing Manual. The revised booklet

• describes how to file applications and notices with the OCC
• outlines general filing requirements
• outlines the OCC’s review and decision processes for licensing filings

The new booklet updates procedures and requirements to reflect the integration of the Office of Thrift Supervision into the OCC in 2011 and the issuance of revised regulations (12 CFR 5) that became effective July 1, 2015.

The Federal Trade Commission recently released updated guidance for businesses on complying with the Children's Online Privacy Protection Rule. The FTC's updated "COPPA Compliance Plan" adds new business models, expands the products covered by the COPPA Rule, and explains new methods for obtaining parental consent.

The Department of Labor has announced it will publish a Request for Information (RFI) related to its Fiduciary Rule. The RFI will be an opportunity for the public to provide data and information that may be used to revise the rule and associated exemptions. There will be a 15-day comment period on extending the January 1, 2018, applicability data of certain aspects of the rule, and a 30-day comment period on all other issues in the RFI, each period starting with publication of the RFI in the Federal Register.

UPDATE: The Request for Information was published on July 6, 2017, at 82 FR 31278. The comment period on question 1 (relating to extending the January 1, 2018, applicability date of certain provisions) expires on July 21, 2017. Comments on all other questions in the RFI are due by August 7, 2017.

The Department of the Treasury has posted a reminder that financial institutions are required to provide the Office of Foreign Assets Control (OFAC) a comprehensive list of all blocked property held as of June 30 of the current year by September 30. The annual reports must be filed using Form TD F 90-22.50.

The Federal Deposit Insurance Corporation (FDIC) released on Friday a list of orders of administrative enforcement actions taken against banks and individuals in May. The administrative enforcement actions in those orders consisted of one consent order; six removal and prohibition orders; six Section 19 orders; 14 civil money penalties (CMPs); one order modifying a previous order of removal from office and prohibition from further participation, three orders of restitution; and six terminations of consent orders.

Three of the CMPs were for violations of the Flood Disaster Protection Act and related FDIC regulations by banks in West Virginia ($52,750), Illinois ($8,000) and Wisconsin ($1,600). An Iowa banker was issued an order of prohibition and for payment of a $12,500 CMP. Seven institution-affiliated parties of Bank of Mingo, Williamson, West Virginia, received orders assessing each of them a $1,000 CMP.

The OCC has issued Bulletin 2017-24 announcing the issuance of a new "Branch Closings" booklet of the Comptroller’s Licensing Manual. The revised booklet:

• provides an overview of the requirements for a bank to provide the OCC and the customers of a branch a 90-day advance notice of a branch closing, and any exceptions that may apply.
• details the different requirements of a "branch closing" for a national bank or Federal savings association
• clarifies policies and procedures that a bank should follow if a branch must be closed temporarily due to an emergency or factors beyond the control of the bank
• lists references and links to informational resources and sample forms and documents that banks may find useful during the branch closing process

The Federal Reserve Board has released its annual determination of the aggregate consolidated liabilities of financial companies as required by section 622 of the Dodd-Frank Act. The act prohibits a financial company from combining with another company if the resulting company's liabilities would exceed 10 percent of the aggregate consolidated liabilities of all financial companies. Financial companies subject to the limit include insured depository institutions, bank holding companies, savings and loan holding companies, foreign banking organizations, companies that control insured depository institutions, and nonbank financial companies designated for Board supervision by the Financial Stability Oversight Council.

The CFPB published in today's Federal Register policy guidance concerning early compliance with its 2016 amendments to the Servicing Rules under Regulations X and Z. Responding to industry concerns about mid-week effective dates (both the October 19, 2017, and April 19, 2018, effective dates of the 2016 amendments fall on Thursday), the Bureau's guidance says the agency won't take action for violations of existing Regulation X or Regulation Z resulting from compliance with the amendments up to three days early. That will allow servicers to update their systems over the weekend prior to the effective dates, rather than mid-week.

The U.S. Department of the Treasury took multiple actions yesterday regarding North Korea. Treasury’s Financial Crimes Enforcement Network (FinCEN) announced a finding that Bank of Dandong, a Chinese bank that acts as a conduit for illicit North Korean financial activity, is a foreign bank of primary money laundering concern, and FinCEN has proposed to sever the bank from the U.S. financial system. In addition, Treasury’s Office of Foreign Assets Control (OFAC) designated two Chinese individuals and one Chinese company in response to North Korea’s ongoing WMD development and continued violations of UN Security Council resolutions. See our OFAC Update for identification of the designated individuals and entity.

• Treasury Department press release
• FinCEN Notice of proposed rulemaking

The CFPB has published in today's Federal Register its previously-announced proposal to amend its Prepaid Rule. Comments on the proposal will be accepted through August 14, 2017.