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

12/06/2019

FTC and Ohio act to halt credit card scheme

A federal court in El Paso, at the request of the FTC and the State of Ohio, has halted he operations of Voice over Internet Protocol (VoIP) service provider Globex Telecom Inc., which allegedly played a key role in robocalling consumers to promote a credit card interest reduction scheme that bilked consumers out of millions of dollars. A temporary restraining order was issued by the court against Globex and its Canadian counterpart, 9506276 Canada, Inc., that appoints a temporary receiver and freezes the defendants’ assets. Globex allegedly provided Educare Centre Services, a company that the FTC and Ohio sued in July 2019, with the means to make calls to U.S. consumers, including illegal robocalls, to market Educare’s phony credit card interest rate reduction services.

12/06/2019

OCC lists 10 Outstanding CRA evals

The OCC yesterday released a list of Community Reinvestment Act (CRA) performance evaluations that became public in November. Of the 22 evaluations listed, 12 are rated "Satisfactory" and these ten are rated "Outstanding" (links are to their evaluations):

12/06/2019

Fed joins Faster Payments Council as founding sponsor

The Federal Reserve System announced yesterday it has joined the U.S. Faster Payments Council as a founding sponsor. The FPC and its members seek to facilitate faster payments in the United States, enabling Americans to securely pay anyone, anywhere, at any time with near-immediate funds availability. Its priorities include faster payments education and fraud mitigation.

12/06/2019

Mnuchin discusses FSOC report with House Financial Services Committee

Treasury Secretary Mnuchin presented the Financial Stability Oversight Council (FSOC) 2019 annual report and other priorities of the Treasury Department to members of the House Committee on Financial Services yesterday. He noted that, since the publication of the Council’s last annual report in December 2018, the U.S. economy has continued to perform extremely well. Economic growth in the United States far exceeds that of U.S. G7 trading partners, and unemployment rates are near a 50-year low, including unemployment levels at or near all-time lows for African Americans, Hispanic Americans, Asian Americans, and women. Wages are rising faster for hardworking families; corporate and consumer delinquency and default rates are low; and financial conditions remain stable. He also stated, “The report also provides a strong message to market participants about the need to prepare for the transition away from LIBOR as a reference rate. Failure to prepare adequately could cause significant disruptions across financial markets and to borrowers, given the widespread use of LIBOR in financial instruments.”

12/06/2019

Treasury and Justice target cybercriminals

Russian nationals charged with banking cybercrimes

The U.S. Department of Justice has joined with the U.S. Department of State and the United Kingdom’s National Crime Agency in charging two Russian nationals, Maksim Y. Yakubets and Igor Turashev, with a vast and long-running cybercrime spree that stole from thousands of individuals and organizations in the United States and abroad. They are charged with an effort that infected tens of thousands of computers with a malicious code called Bugat. Once installed, the computer code, also known as Dridex or Cridex, allowed the criminals to steal banking credentials and funnel money directly out of victims’ bank accounts. Their names and those of their associates have been added to the SDN List.

Evil Corp sanctioned for infecting bank computers

OFAC has announced action taken against Evil Corp, the Russia-based cybercriminal organization responsible for the development and distribution of the Dridex malware. The Dridex malware is a multifunctional malware package that is designed to automate the theft of confidential information, to include online banking credentials from infected computers.

Evil Corp has used the Dridex malware to infect computers and harvest login credentials from hundreds of banks and financial institutions in over 40 countries, causing more than $100 million in theft. OFAC's action targets 17 individuals and seven entities to include Evil Corp, its core cyber operators, multiple businesses associated with a group member, and financial facilitators utilized by the group. Identification information on the designated individuals and entities can be found in BankersOnline's OFAC Update.

FinCEN and the CISA (U.S. Cybersecurity and Infrastructure Security Agency) issued a Report on Dridex Malware that provides an overview of the malware, related activity, and a list of previously unreported indicators of compromise derived from information reported to FinCEN by private sector financial institutions. Because actors using Dridex malware and its derivatives continue to target the financial services sector, including financial institutions and customers, the techniques, tactics, and procedures contained in this report warrant renewed attention. Treasury and CISA encourage network security specialists to incorporate these indicators into existing Dridex-related network defense capabilities and planning.

12/05/2019

FDIC lists CRA eval ratings

The FDIC has issued a list of 71 state nonmember banks to which the FDIC assigned Community Reinvestment Act evaluation ratings in September 2019. A bank in Connecticut received a "Needs to Improve" rating. The other 70 banks received "Satisfactory" ratings.

12/05/2019

HUD awards $10M to non-profit housing organizations

HUD has announced it has awarded $10 million in grants to four non-profit housing organizations, which will create at least 538 affordable homes for low-income families and individuals:

  • Habitat for Humanity International
  • Housing Assistance Council
  • Community Frameworks
  • Tierra Del Sol Housing Corporation

12/05/2019

Condition of the U.S. banking system

Comptroller Otting and FDIC Chairman McWilliams have submitted written statements to the House Committee on Financial Services on the condition of the U.S. banking system and progress made to achieve the agencies' regulatory priorities.

12/05/2019

FinCEN report on increase in fraud against elders

A report has been released by FinCEN indicating that elders face an increased threat to their financial security by both domestic and foreign actors. Elder financial exploitation Suspicious Activity Report filings increased dramatically over the six-year study period, from about 2,000 filings per month in 2013 to a peak of nearly 7,500 filings per month in August 2019. The yearly dollar amount of suspicious activity reported for elder financial exploitation also rose.

FinCEN Director Kenneth A. Blanco said the SARs filed by financial institutions are used to protect the country and its people from harm and provide unique and valuable information on crime and other threats happening in the U.S. and around the world impacting families and communities. He said, "These SARs are also important to filer banks and MSBs because they show trends and patterns in criminal activity. Every financial institution wants to protect its customers, and SAR reporting helps them do that. Awareness of these reporting trends and potential exploitation methods can also help consumers protect themselves."

12/04/2019

RFI on FDIC approaches to cost-benefit analysis

The FDIC has published [84 FR 65808, 11/29/2019] a Request for Information (RF!) seeking comment on approaches it uses, or is considering using, to analyze the effects of its regulatory actions. The RFI is part of FDIC's ongoing effort to strengthen the quality of its regulatory cost-benefit analyses. Comments are due by January 28, 2020.

12/04/2019

Major disaster support continued by HUD

HUD has announced the allocation of over $2.3 billion to support the long-term disaster recovery process in hard-hit areas in fifteen states, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, American Samoa and the Commonwealth of the Northern Mariana Islands through its Community Development Block Grant-Disaster Recovery (CDBG-DR) program.

12/04/2019

Bureau proposes Remittance Rule changes

The CFPB announced Tuesday it has issued a Notice of Proposed Rulemaking relating to the Remittance Rule (subpart B of Regulation E). The proposal—

  • would allow certain banks and credit unions to continue to provide estimates under certain conditions where it could be economically infeasible for these institutions to provide exact disclosures.
  • would increase the safe harbor threshold that determines whether a company makes remittance transfers in the normal course of its business and is subject to the Rule to 500 or fewer transfers annually in the current and prior calendar years. The Bureau said this would reduce the burden on over 400 banks and almost 250 credit unions that send a relatively small number of remittances—less than 0.06 percent of all remittances.
  • requests comment on a permanent exception in the Rule permitting providers to use estimates for transfers to certain countries and the process for adding countries to the safe harbor countries list maintained by the Bureau.

Comments on the proposal will be accepted for 45 days following its publication in the Federal Register.
UPDATE: Published at 84 FR 67132 on 12/6/2019, with comment period ending 1/21/2020.

12/04/2019

Statement on use of alternative data in credit underwriting

Five Federal financial regulatory agencies—the Fed, the CFPB, the FDIC, the OCC and the NCUA— have issued an "Interagency Statement on the Use of Alternative Data in Credit Underwriting" by banks, credit unions, and non-bank financial firms.

The statement notes the benefits that using alternative data may provide to consumers, such as expanding access to credit and enabling consumers to obtain additional products and more favorable pricing and terms. The statement explains that a well-designed compliance management program provides for a thorough analysis of relevant consumer protection laws and regulations to ensure firms understand the opportunities, risks, and compliance requirements before using alternative data.

Alternative data includes information not typically found in consumers’ credit reports or customarily provided by consumers when applying for credit. Alternative data include cash flow data derived from consumers’ bank account records.

12/04/2019

Treasury targets Venezuelan oil shipments to Cuba

The Treasury Department announced Tuesday that OFAC has identified six vessels as blocked property of Petroleos de Venezuela, S.A. (PdVSA) under the authority of Executive Order 13884, which blocks the property and interests in property of the Government of Venezuela. Additionally, OFAC identified the vessel Esperanza as blocked property of Caroil Transport Marine Ltd., which was designated on September 24, 2019, for operating in the oil sector of the Venezuelan economy. The Esperanza was previously listed as the Nedas on the SDN List, which was identified as blocked property on April 12, 2019. For further identification information on the seven vessels, see BankersOnline's OFAC Update.

12/04/2019

Agencies clarify guidance for banking hemp-related businesses

On Tuesday, December 3, the Board of Governors, FDIC, FinCEN, OCC, and the Conference of State Bank Supervisors jointly released a statement, "Joint Guidance on Providing Financial Services to Customers Engaged in Hemp-Related Businesses," clarifying the legal status of hemp growth and production, and the relevant requirements under the Bank Secrecy Act for banks providing services to hemp-related businesses. The statement—

  • emphasizes that banks are no longer required to file SARs for customers solely because they are engaged in the growth or cultivation of hemp in accordance with applicable laws and regulations. For hemp-related customers, banks are expected to follow standard SAR procedures, and file a SAR if signs of suspicious activity warrant filing.
  • provides banks with background information on the legal status of hemp, the USDA's interim final rule on the production of hemp, and the BSA considerations when providing banking services to hemp-related businesses.
  • indicates that FinCEN will issue additional guidance after further reviewing and evaluating the USDA interim final rule.

12/03/2019

Littman to head SEC cyber unit

The SEC has announced Kristina Littman has been named Chief of the Division of Enforcement’s Cyber Unit, a national, specialized unit that focuses on protecting investors and markets from cyber-related misconduct.

12/03/2019

Agencies hosting webinar on Call Report changes

The federal banking agencies will conduct an interagency webinar to discuss revisions to the FFIEC 051 Call Report that have been implemented in 2019 and proposed reporting changes that would take effect beginning with the first quarter 2020 report. Where appropriate, the webinar also will address revisions to the FFIEC 031 and FFIEC 041 Call Reports. The webinar is scheduled for Tuesday, December 10, 2019, from 1:00 p.m. to 2:30 p.m., Eastern Time.

12/03/2019

Federal Reserve balance sheet trends

The Federal Reserve has updated its Credit and Liquidity Programs and the Balance Sheet charts with data through November 20. The five charts track recent balance sheet trends for the Federal Reserve System.

  • Total Assets
  • Selected Assets
  • Credit Extended through Federal Reserve Liquidity Facilities
  • Support for Specific Institutions
  • Selected Liabilities of the Federal Reserve

12/03/2019

G.5 foreign exchange rates

The Federal Reserve System has posted the G.5 Foreign Exchange Rates report for November 2019 showing the average rates of exchange together with comparable figures for other months. Averages are based on daily noon buying rates for cable transfers in New York City certified for customs purposes by the Federal Reserve Bank of New York.

12/03/2019

FHFA report on non-performing loan sales

The Federal Housing Finance Agency has released its latest report on the sale of non-performing loans by Fannie Mae and Freddie Mac. The report includes information about NPLs sold through June 30, 2019, and reflects borrower outcomes on NPLs sold through December 31, 2018, and reported through June 30, 2019. The report shows that, through June 30, 2019, the Enterprises sold 117,466 NPLs with a total unpaid principal balance of $22.2 billion. While the Enterprises conducted NPL sales in the first half of 2019, none of the sales settled by the end of the reporting period.

  • NPLs sold had an average delinquency of 3.0 years and an average loan-to-value ratio of 92 percent.
  • NPLs in New Jersey, New York and Florida represented nearly half (45 percent) of the NPLs sold. These three states accounted for 47 percent of the Enterprises' loans that were one year or more delinquent as of December 31, 2014, prior to the start of NPL program sales in 2015.
  • Fannie Mae sold 78,281 loans and Freddie Mac sold 39,185 loans.

12/03/2019

FDIC posts enforcement actions manual

The FDIC has issued FIL-76-2019 announcing it has posted its Formal and Informal Enforcement Actions Manual on its website to provide transparency regarding the agency's enforcement program.

  • The manual provides instructions to FDIC staff who process formal and informal actions against insured depository institutions and their institution-affiliated parties.
  • The manual does not interpret any law or regulation. Rather, it supports FDIC staff in the application of relevant laws and regulations. Additionally, it provides instructions for development of enforcement actions in response to supervisory concerns, violations, and other actionable misconduct.
  • The manual does not establish supervisory requirements and is not industry guidance.

12/02/2019

FDIC removes duplicative rule

The FDIC has published [84 FR 65276] a final rule removing Subpart M from its Rules and Regulations at 12 CFR Part 390, which addressed deposits at state savings associations, effective December 27, 2019.

12/02/2019

Proposal for transparency in health coverage

The IRS, Employee Benefits Security Administration, and Centers for Medicare & Medicaid Services have published [84 FR 65464] proposed rules that would require group health plans and health insurance issuers in the individual and group markets to, among other things, disclose cost-sharing information upon request, to a participant, beneficiary, or enrollee (or his or her authorized representative), including an estimate of such individual's cost-sharing liability for covered items or services furnished by a particular provider. Under these proposed rules, plans and issuers would be required to make such information available on an internet website and, if requested, through non-internet means, thereby the individuals to obtain an estimate and understanding of their out-of-pocket expenses and effectively shop for items and services. Comments on the proposed rules are due by January 14, 2020.

12/02/2019

OFAC issues new and amended Iran-related FAQs

OFAC has issued a bulletin announcing its issuance of amended Iran-related FAQ 303 and FAQ 304 and new Iran-related FAQs 805, 806, and 807.

12/02/2019

Bureau publishes 2020 FCRA fee cap amount

The CFPB has announced the ceiling for 2020 on allowable charges that a consumer reporting agency can impose for providing a disclosure to a consumer will remain unchanged at $12.50. Appendix O to CFPB Regulation V in BankersOnline's Regulations pages has been updated accordingly.

12/02/2019

FDIC seeks comments on analysis of regulatory actions

The FDIC has published [84 FR 65808] a request for comments on approaches it is considering to analyze the effects of its regulatory actions. The comments received will help the FDIC to strengthen its analysis of regulatory actions. Comments will be accepted through January 28, 2020.

12/02/2019

FDIC releases enforcement actions

The FDIC has released a list of recent enforcement actions taken in the month of October. Among those actions were:

  • A notice of charges and hearing and assessment of a $225,000 BSA/AML civil money penalty issued to a San Francisco bank.
  • A decision and order of prohibition issued to Donald V. Watkins, Sr., former chairman of the board of Alamerica Bank, Birmingham, Alabama, for violations of Regulation O involving his receipt of proceeds from four loans made by his bank to nominee borrowers in excess of amounts allowed under the regulation and without disclosing his personal interest in the loans to the bank.

12/02/2019

November Beige Book

The Federal Reserve has posted a full report and a national summary of the November 27, 2019, issue of the Beige Book, which is based on information collected on or before November 18, 2019.

12/02/2019

NCUA prohibition notices and orders

The National Credit Union Administration announced it issued three prohibition notices and three prohibition orders in November. The individuals banned from the business of banking include:

  • a former employee of Greater Abyssinia Federal Credit Union in Cleveland, Ohio, was had been sentenced on charges of embezzlement, bank fraud, and aggravated identity theft
  • a former employee of Lanco Federal Credit Union in Lancaster, Pennsylvania, who had been sentenced on the charge of theft by unlawful taking—movable property.
  • a former employee of Space Coast Credit Union in Melbourne, Florida, who had been sentenced on charges of criminal use of personal identification, organized fraud to obtain property, grand theft, and making false entries into the books of a corporation.
  • two former employees of Mid East Tennessee Community Credit Union in Decatur, Tennessee, and one former employee of WV National Guard Federal Credit Union in Charleston, West Virginia, each of whom agreed and consented to the issuance of a prohibition order

12/02/2019

FDIC CRA exams for first half of 2020

The FDIC has announced it has posted the lists of institutions scheduled for a Community Reinvestment Act examination during the first and second quarters of 2020. The schedules of institutions to be examined are based on the best information now available and are subject to change.

12/02/2019

FEMA to suspend communities from flood program

FEMA has published a notice [84 FR 65924] in today's Federal Register identifying communities in North Carolina scheduled for suspension from the National Flood Insurance Program on December 6, 2019, for noncompliance with the floodplain management requirements of the program. The communities listed include:

  • Atkinson
  • Northwest
  • Pembroke
  • Roxboro
  • Tabor City
  • unincorporated areas of Brunswick, Columbus, Durham, Pender, and Robeson Counties

If FEMA receives documentation that a community has adopted the required floodplain management measures prior to the effective suspension date, the suspension will not occur. Information identifying the current participation status of a community can be obtained from FEMA's Community Status Book.

12/02/2019

Fed Board approves 2020 fee schedule

The Federal Reserve Board has announced the approval of fee schedules, effective January 2, 2020, for payment services the Federal Reserve Banks provide to depository institutions (priced services).

Overall, the Reserve Banks estimate that the price changes will result in a 2.4 percent average price increase. Estimated price changes will result in a 3.3 percent average price increase for Check Services customers; a 3.7 percent average price increase for Fedwire Funds Service customers; and a 2.9 percent average price increase for FedLine Solutions customers. Fees will remain unchanged for the Reserve Banks' FedACH Service, National Settlement Service, and Fedwire Securities Service.

Training View All

Penalties View All

Search Top Stories