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 Stories

04/01/2020

Fed sets up temp FIMA Repo Facility

The Federal Reserve Board announced on Tuesday it is establishing a temporary repurchase agreement facility for foreign and international monetary authorities (FIMA Repo Facility) to help support the smooth functioning of financial markets, including the U.S. Treasury market, and thus maintain the supply of credit to U.S. households and businesses. The FIMA Repo Facility will allow FIMA account holders, which consist of central banks and other international monetary authorities with accounts at the Federal Reserve Bank of New York, to enter into repurchase agreements with the Federal Reserve. In these transactions, FIMA account holders temporarily exchange their U.S. Treasury securities held with the Federal Reserve for U.S. dollars, which can then be made available to institutions in their jurisdictions.

This facility should help support the smooth functioning of the U.S. Treasury market by providing an alternative temporary source of U.S. dollars other than sales of securities in the open market. It should also serve, along with the U.S. dollar liquidity swap lines the Federal Reserve has established with other central banks, to help ease strains in global U.S. dollar funding markets.

The Facility will be available from April 6 for at least six months.

04/01/2020

CFPB Guide to coronavirus mortgage relief options

04/01/2020

FATF reports on U.S. progress in tackling ML

The Financial Action Task Force has issued a report on the United States' progress in strengthening measures to tackle money laundering and terrorist financing.

The United States has been in an enhanced follow-up process following the adoption of its mutual evaluation in 2016. In line with the FATF Procedures for mutual evaluations, the country has reported back to the FATF on the actions it has taken since then. To reflect the United States' progress, the FATF has changed its rating of the country on Recommendation 10 (Customer Due Diligence) from Partially Compliant to Largely Compliant

The report also looks at whether the United States' measures meet the requirements of FATF Recommendations that have changed since the 2016 mutual evaluation. The FATF agreed to maintain the rating of Compliant for Recommendation 2 (National cooperation and coordination), Recommendation 5 (Terrorist financing offense) and Recommendation 21 (Tipping-off and confidentiality). The FATF also maintained the rating of Largely Compliant for Recommendation 7 (Targeted financial sanctions related to proliferation), Recommendation 8 (Non-profit organizations) Recommendation 15 (New technologies) and Recommendation 18 (Internal controls and foreign branches and subsidiaries).

The United States is now compliant on 9 of the 40 Recommendations and largely compliant on 22 of them. It remains partially compliant on 5 of the 40 Recommendations and not compliant on 4 of them. The United States remains in enhanced follow-up and will report back to the FATF on progress to strengthen its implementation of Anti-Money Laundering / Countering the Financing of Terrorism measures.

04/01/2020

SEC to hold COVID-19 video conference

The Securities and Exchange Commission Small Business Capital Formation Advisory Committee will host a meeting via video conference on April 2, 2020, in response to the challenges small businesses are facing in coping with COVID-19. The meeting will take place from noon to 1:30 p.m. ET. Members of the public may watch the live webcast of the meeting on the Committee’s website.

04/01/2020

Low income CUs eligible for NCUA loans and grants

The NCUA has announced federally insured, low-income-designated credit unions can request grants and loans from the NCUA to assist members, businesses, and communities experiencing economic hardships due to the COVID-19 pandemic.

The NCUA’s Office of Credit Union Resources and Expansion will award grants and loans to low-income credit unions to:

  • Provide assistance to schools with children in need, including providing breakfast and lunch;
  • Provide assistance to elderly members needing food and medication delivery services;
  • Offer rental, mortgage, and utility payment assistance to members such as entrepreneurs, small business owners, and hospitality and service industry employees;
  • Offer loan payment relief to affected members;
  • Develop a new product or service for affected members, such as offering preloaded cards; or
  • Cover costs associated with moving credit union operations to remote locations: laptops, software, and short-term rentals.

04/01/2020

Regulators clarify five year-transition rule and CECL Rule

FDIC FIL-32-2020, issued yesterday, delivered a joint statement by the Fed, FDIC, and OCC to clarify the interaction between the interim final rule that provides a five-year transition period for the impact of the current expected credit loss methodology (CECL) on regulatory capital and the temporary CECL relief provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

On March 27, 2020, the agencies issued an interim final rule that provides banking organizations that were required (as of January 1, 2020) to adopt CECL during the 2020 calendar year an option to delay an estimate of CECL's impact on regulatory capital. Also, on March 27, 2020, the CARES Act was signed into law. The CARES Act provides banking organizations optional temporary relief from complying with CECL. The joint statement clarifies the interaction between the CECL IFR and the CARES Act for purposes of regulatory capital requirements.

04/01/2020

Comment period for sellers/servicers eligibility rules

A 30-day extension to the comment period for the proposed update to the minimum financial eligibility requirements for Fannie Mae and Freddie Mac Seller/Servicers has been announced by the Federal Housing Finance Agency (FHFA). Comments will now be accepted through April 30. 2020.

04/01/2020

More tax and reporting deadlines delayed

Treasury has announced it is delaying tax payment due dates for wine, beer, distilled spirits, tobacco products, firearms, and ammunition excise taxes, to provide flexibility for businesses that have been negatively affected by COVID-19. The postponement of due dates applies to any tax payment or operational report with an original due date falling on or after March 1, 2020, through July 1, 2020. Interest and penalties will not apply when payments are made within 90 days of the original due date. Treasury's Alcohol and Tobacco Tax and Trade Bureau (TTB) will re-evaluate the terms of this immediate relief as circumstances warrant.

04/01/2020

Employee Retention Credit program launched

Treasury and the IRS have launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50 percent of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.

Qualifying employers must fall into one of two categories:

  1. The employer’s business is fully or partially suspended by government order due to COVID-19 during the calendar quarter
  2. The employer’s gross receipts are below 50 percent of the comparable quarter in 2019. Once the employer’s gross receipts go above 80 percent of a comparable quarter in 2019 they no longer qualify after the end of that quarter.

These measures are calculated each calendar quarter.

Updates on the implementation of the credit, a fact sheet and other information can be found on the IRS Coronavirus Tax Relief page.

04/01/2020

Treasury and SBA announce CARES PPP funds process

SBA Administrator Jovita Carranza and Treasury Secretary Steven T. Mnuchin yesterday announced that the SBA and Treasury Department have initiated a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need. The CARES Act establishes a new $349 billion Paycheck Protection Program (PPP). The PPP will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed.

PPP loans can be applied for beginning April 3, at any SBA-approved lender. Lenders that are not already SBA-approved can apply for an expedited approval.

04/01/2020

Fannie and Freddie expand loan accommodations

The Federal Housing Finance Agency has announced several loan processing flexibilities from Fannie Mae and Freddie Mac designed to help lenders process loans, including:

  • Allowing desktop appraisals on new construction loans;
  • Allowing flexibility on demonstrating construction has been completed (alternative to the Completion Report);
  • Allowing flexibility for borrowers to provide documentation (rather than requiring an inspection) to allow renovation disbursements (draws); and
  • Expanding the use of power of attorney and remote online notarizations.

These accommodations only apply to loans being originated for sale to Fannie or Freddie.

04/01/2020

Fed Board delays revised control framework

The Federal Reserve Board has announced it will delay by six months the effective date for its revised control framework, to reduce operational burden and allow institutions to focus on current economic conditions.

In January, the Board finalized a revised framework (see our 1/31/2020 Top Story) that simplifies and increases the transparency of its rules for determining when one company controls another company for purposes of the Bank Holding Company Act and Home Owners' Loan Act. If a company has control over a banking organization, the company generally becomes subject to the Board's rules and regulations. The six-month delay will move the effective date to September 30, from the original date of April 1. No changes were made to the framework itself.

04/01/2020

FEMA to suspend communities in CT, MD, NJ and RI

FEMA has published a notice at 85 FR 18129 in today's Federal Register listing communities in Connecticut, Maryland, New Jersey and Rhode Island that are scheduled for suspension on April 3, 2020, from the National Flood Insurance Program due to noncompliance with the floodplain management requirements of the program. The affected communities are:

  • CT: North Stonington, Stonington, and Voluntown
  • MD: Barton, Cumberland, Frostburg, Lonaconing, Midland, and Westernport
  • NJ: Belleville, Bloomfield, Caldwell, Cedar Grove, East Orange, Essex Fells, Glen Ridge, Newark, North Caldwell, Nutley, Orange Township, Roseland, and Verona
  • RI: Charlestown, Coventry, Exeter, Hopkinton, Narragansett, Narragansett Indian Tribe, North Kingstown, Richmond, South Kingstown, West Greenwich, and Westerly

If FEMA receives documentation that a listed community has adopted the required floodplain management measures before April 3, the community won't be suspended. Information on the current participation status of a community can be found in FEMA's Community Status Book.

Training View All

Penalties View All

Search Top Stories