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The Treasury Department's Office of Foreign Assets Control has taken action against two groups of individuals and entities. OFAC designated eight individuals involved in organizing or supporting the creation of Venezuela's Constituent Assembly. Those designated include seven current and former officials of the Venezuelan Government and one individual who has participated in actions or policies that undermine democratic processes or institutions in Venezuela. As a result of today's actions, all assets of these individuals subject to U.S. jurisdiction are frozen, and U.S. persons are prohibited from dealing with them.

OFAC also identified Mexican national Raul Flores Hernandez and the Flores Drug Trafficking Organization (Flores DTO) as Significant Foreign Narcotics Traffickers pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). In addition to Flores and the Flores DTO, OFAC also designated 21 Mexican nationals and 42 entities in Mexico for providing support to the narcotics trafficking activities of Raul Flores Hernandez and the Flores DTO and/or for being owned or controlled by the Flores DTO, its members, and trusted associates. As a result of today's action, all assets of the individuals and entities designated that are under U.S. jurisdiction or are in the control of U.S. persons are frozen, and U.S. persons are generally prohibited from engaging in transactions with them.

For identification of the individuals and entities targeted in these two actions, see our OFAC Update.

The FATF published its report ‌to the July 2017 G20 Leaders’ Summit on strengthening the FATF's institutional basis, governance and capacity; tackling terrorist financing and improving transparency and availability of beneficial ownership information.

NCUA Chairman McWatters has sent a letter to CFPB Director Cordray requesting that the CFPB provide a conditional exemption for credit unions with assets of more than $10 billion from its examination and enforcement authority. Citing credit unions’ unique role in the financial system by virtue of their being not-for-profit institutions owned and controlled by members, McWatters said shifting examination and enforcement authority to NCUA offers numerous benefits from the current system, in which credit unions face unnecessary examination burdens and aggressive punitive fines. Six federally insured credit unions—Navy Federal Credit Union, State Employees’ Credit Union, Pentagon Federal Credit Union, Boeing Employees Credit Union, Schools First Federal Credit Union, and The Golden 1 Credit Union—have assets of $10 billion or more.

FinCEN published a Notice of Proposed Rulemaking in the July 7, 2017, Federal Register under Section 311 of the USA PATRIOT Act, that would prohibit the opening or maintaining of a correspondent account in the United States (the fifth special measure in Section 311) for, or on behalf of, Bank of Dandong. Comments on the proposal will be accepted through September 5, 2017. FinCEN has found that Bank of Dandong, located in China, is a financial institution of primary money laundering concern because it serves as a conduit for North Korea to access the U.S. and international financial systems, including by facilitating millions of dollars of transactions for companies involved in North Korea’s weapons of mass destruction and ballistic missile programs.

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