Skip to content

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

11/20/2019

FDIC proposes two new rules

The FDIC’s Board of Directors has proposed two new rules:

  • Withdrawal and reenactment of 12 CFR part 303 subpart L (Applications Under Section 19 of the Federal Deposit Insurance Act) and amendment of 12 CFR part 308, subpart M (Procedures and Standards Applicable to Applications Pursuant to Section 19 of the FDIA) to formalize a longstanding agency policy related to individuals seeking to work in the banking industry with minor criminal offenses. The FDIC released a Fact Sheet on the proposal.
  • Amendments to 12 CFR part 331 (Federal Interest Rate Authority) to clarify the Federal law governing interest rates state banks may charge their customers by addressing marketplace uncertainty in the wake of a 2015 court ruling that called into question the enforceability of interest rate terms following the sale or assignment of a loan originated by a national bank to a third-party non-bank. A Fact Sheet on this proposal was also released.

Comments on both proposed rules will be accepted for 60 days following publication in the Federal Register.

Press releases:

11/20/2019

Final rule on calculation of counterparty risk

A final rule updating how certain banking organizations are required to measure counterparty credit risk for derivative contracts under their regulatory capital rules has been jointly announced by the Federal Reserve, FDIC, and OCC. The final rule implements the "standardized approach for measuring counterparty credit risk," also known as SA-CCR and will replace the "current exposure methodology" for large, internationally active banking organizations, while other, smaller banking organizations may voluntarily adopt SA-CCR.

The rule, which will affect OCC regulations at 12 CFR parts 3 and 32, Federal Reserve Regulation Q (12 CFR part 217), and FDIC regulations at 12 CFR part 324, will be effective April 1, 2020, with a mandatory compliance date of January 1, 2022, for advanced approaches banking organizations.

11/20/2019

Final rule on treatment of HVCRE

The Federal Reserve, FDIC, and OCC have finalized a rule to modify the treatment of high volatility commercial real estate (HVCRE) exposures as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act. The final rule clarifies certain terms contained in the HVCRE exposure definition, generally consistent with their usage in the Call Report instructions. The rule also clarifies the treatment of credit facilities that finance one- to four-family residential properties and the development of land, which is substantially similar to the proposal issued in July. Additionally, in response to comments on that proposal, the final rule provides banking organizations with the option to maintain their current capital treatment for acquisition, development, or construction loans originated between January 1, 2015, and the effective date of the final rule, April 1, 2020.

The rule affects OCC regulations at 12 CFR part 3, Federal Reserve Regulation Q (12 CFR part 217) and FDIC regulations at 12 CFR part 324.

11/20/2019

Regulators finalize changes to supplementary leverage ratio

The federal bank regulatory agencies (Fed, FDIC, and OCC) have finalized changes to a capital requirement for banking organizations predominantly engaged in custodial activities, as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). The final rule is unchanged from the proposal issued for public comment in April 2019. It will be effective April 1, 2020.

Based on current data, only The Bank of New York Mellon Corporation, Northern Trust Corporation, and State Street Corporation, together with their depository institution subsidiaries, would be affected by the rule.

11/19/2019

State updates Cuba Restricted List

The Department of State has published an update [84 FR 63953] to its List of Restricted Entities and Subentities Associated with Cuba (the Cuba Restricted List) with which direct financial transactions are generally prohibited under the Cuban Assets Control Regulations (CACR). The updated list is effective November 19, 2019.

11/19/2019

OFAC designates ISIS support networks

On Monday, OFAC designated two Turkey-based Islamic State of Iraq and Syria (ISIS) procurement agents and four ISIS-linked companies operating in Syria, Turkey, and across the Persian Gulf and Europe for providing critical financial and logistical support to ISIS. Additionally, Treasury is acting against an Afghanistan-based organization, Nejaat Social Welfare Organization, for using false charitable pretenses as a cover to facilitate the transfer of funds and support the activities of the terrorist group’s branch in Afghanistan, ISIS – Khorasan (ISIS-K). Treasury also took action against two senior officials affiliated with this organization.

These targets have been designated pursuant to Executive Order 13224, which targets terrorists and those who have materially assisted, sponsored, or supported terrorists. Identity information for the five entities and four individuals designated on Monday can be found in BankersOnline's OFAC Update.

11/18/2019

GA apartment owners settle HUD racial harassment claim

The Department of Housing and Urban Development has announced it has reached an $80,000 Conciliation/Voluntary Compliance Agreement with Oglethorpe Square Apartments, LP, of Savannah, Georgia, and Gene B. Glick Company, Inc., of Indianapolis, Indiana. The agreement settles allegations that the owners and management agent for the Woods of Savannah apartment complex subjected African-American tenants at the property to repeated instances of racial harassment by white tenants, which included verbal attacks and physical assaults.

11/15/2019

Volcker Rule amendment published

In October, the federal bank regulatory agencies and others approved amendments to the Volcker Rule ("Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds”). Those amendments were published [84 FR 61974] yesterday in the Federal Register with an effective date of January 1, 2020, and a compliance date for financial institutions of January 1, 2021.

11/15/2019

HUD settles with CA housing providers

HUD has announced it has reached a Conciliation/Voluntary Compliance Agreement with housing providers in San Diego, Sacramento and Oceanside, California, settling allegations that they violated the Fair Housing Act and other laws when they refused to install grab bars in the showers of elderly tenants with disabilities and subsequently retaliated against them for making the requests. The providers include Mission Cove Seniors Housing Associates, L.P, Carolyn Compass Rose, LLC, Community Housing Works, Inc. of San Diego, ConAm Management Corporation of Sacramento, and the city of Oceanside, California.

11/14/2019

FFIEC advisory on FATF-identified jurisdictions with AML/CFT deficiencies

FinCEN has issued Advisory FIN-2019-A007 on "Financial Action Task Force-Identified Jurisdictions with AML/CFT Deficiencies and Relevant Actions by the United States Government."

FinCEN has outlined in the Advisory the countermeasures against the AML/CFT deficiencies of the Democratic Peoples Republic of Korea (North Korea) and Iran, and listed the FATF-identified jurisdictions with strategic AML/CFT deficiencies. If a SAR is filed on suspicious activity connected to any of the jurisdictions or activities highlighted in Advisory FIN-2019-A007, the key term "October 2019 FATF FIN-2019-A007" should be included.

Pages

Training View All

Penalties View All

Search Top Stories