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The NCUA will host part two of its webinar series, "How to Be in Compliance with OFAC and FinCEN" on Wednesday, June 25, at 2 p.m. Eastern time. The webinar will utilize real-world scenarios and case studies to explore emerging issues in anti-money laundering compliance that credit unions could face in their daily operations. Online registration for this free webinar is now open.

A joint press release from the Consumer Financial Protection Bureau, Department of Justice, Department of Housing and Urban Development and 50 attorneys general has announced the filing of a proposed consent judgment that would require SunTrust Mortgage, Inc. to provide $500 million in loss-mitigation relief to underwater borrowers. Under the order, SunTrust would also pay $40 million to consumers who lost homes in foreclosure, $10 million to the federal government and a $418 million penalty to the DOJ. The complaint filed in federal court addresses systemic mortgage servicing misconduct, including robo-signing and illegal foreclosure practices. SunTrust is a mortgage lender and servicer headquartered in Richmond, Virginia, and is a wholly-owned subsidiary of Atlanta-based SunTrust Banks, Inc.

The Department of the Treasury has announced it has begun the auctions of all of its holdings of TARP Capital Purchase Program preferred stock in six institutions:

• Marine Bank & Trust Company (Vero Beach, Florida)
• Market Bancorporation, Inc. (Elko New Market, Minnesota)
• Maryland Financial Bank (Towson, Maryland)
• Royal Bancshares of Pennsylvania, Inc. (Narberth, Pennsylvania)
• United American Bank (San Mateo, California)
• White River Bancshares Company (Fayetteville, Arkansas)

The auctions began at 9:00 a.m. Eastern Time yesterday, and will close at 6:00 p.m. Eastern Time, on Thursday, June 19, 2014.

The June 15, 2014, issue of FedFlash has been posted by Federal Reserve Bank Services. The issue contains articles on:

• updated FedLine security token driver software
• Fedline web security and control procedures
• the enhanced EUAC Center
• an update on the Next Generation VPN Solution initiative
• the FedACH FedPayments Reporter Service
• a change to the minimum thresholds for Check Adjustments Service NOI and ERR investigation types

A Federal Reserve Board press release has been issued announcing a Notice of Proposed Rulemaking (NPR) with request for comments on amendments that would:

• amend the capital plan and stress test cycles from October 1 of a calendar year to January 1 of the calendar year
• limit the ability of a BHC to make certain capital distributions
• clarify the application of the capital plan rule for subsidiaries of foreign banking organization
• revise the Board's Policy Statement on the Scenario Design Framework for Stress Testing and Regulation YY to reflect the revisions to the start date of the stress test cycle

Comments on the Board's proposal must be received on or before August 11, 2014.


In addition, the Office of the Comptroller of the Currency has announced it is seeking comment on a proposal to amend the OCC's Annual Stress Test rule. The proposed rule would shift back the timing of the annual stress testing cycle by approximately 90 days, and clarify that institutions covered by the Annual Stress Test rule will not have to calculate their regulatory capital ratios using the Basel III advanced approaches until the stress testing cycle beginning on January 1, 2016. This proposal will have a 60-day comment period beginning with publication in the Federal Register.

The Federal Reserve has announced that on June 16, 2014, it will conduct a fixed-rate offering through its Term Deposit Facility (TDF) of seven-day term deposits with an interest rate of 0.27000 percent and a maximum tender amount of $10 billion.

Advisory FIN-2014-A005 has been issued by the Financial Crimes Enforcement Network (FinCEN) as an update for financial institutions on the increased use of "funnel accounts" as part of trade-based money laundering conducted following the restrictions on U.S. currency transactions in Mexico. A funnel account is an individual or business account in one geographic area that receives multiple cash deposits, often in amounts below the cash reporting threshold, and from which the funds are withdrawn in a different geographic area with little time elapsing between the deposits and withdrawals.

The Federal Reserve Board has published its previously announced final rules repealing its Regulation P (GLBA privacy provisions) [79 FR 30708] and Regulation DD (Truth in Savings) [79 FR 30711] and amending its Regulation V (Identity Theft Red Flags) [79 FR 30709]. Each of the final rules will be effective June 30, 2014.

The Bureau of Engraving and Printing has published [79 FR 30724] an Interim Final Rule amending its regulations on exchange of mutilated paper currency in order to update mutilated currency procedures and eliminate references to obsolete practices and terms. The amendments will also serve to deter fraud and abuse in the mutilated currency redemption process. The rule is effective immediately, with comments accepted through July 28, 2014.

The President has executed an Executive Order terminating the prohibitions contained in Executive Order 13303 of May 22, 2003, as amended, on any attachment, judgment, decree, lien, execution, garnishment, or other judicial process with respect to the Development Fund for Iraq and Iraqi petroleum, petroleum products, and interests therein, and the accounts, assets, investments, and other property of the Central Bank of Iraq.