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On Friday, the Treasury Department reported that OFAC had taken action against Hamas, targeting Gaza- and Lebanon-based leaders of the terrorist group’s offensive cyber and unmanned aerial vehicle (UAV) operations. Concurrent with this action, the European Union imposed sanctions targeting Hamas.

For the names and identification information of the designated parties, see the April 12, 2024, BankersOnline OFAC Update.

The FDIC on Wednesday released a comprehensive report on how the FDIC would manage the orderly resolution of a large, complex financial company under the Dodd-Frank Act.

In remarks to the Peterson Institute for International Economics in Washington, DC, FDIC Chairman Martin J. Gruenberg presented the Overview of Resolution Under Title II of the Dodd-Frank Act, the most detailed description to date of the FDIC’s preparedness to use its Title II resolution authority in a manner that promotes financial stability and prevents taxpayer bailouts.

The Overview explains how the FDIC would use authorities under Title II of the Act, with a particular focus on how it expects to resolve U.S.-headquartered Global Systemically Important Banking Organizations (GSIBs). In addition, the paper:

• Provides background of resolution-related authorities in the Dodd-Frank Act
• Highlights key measures that facilitate preparation and implementation of resolution under Title II authority
• Reviews strategic decision-making for the use of Title II authority
• Explains how the FDIC expects to carry out a Title II resolution of a U.S. GSIB using a Single Point of Entry resolution strategy

The FDIC has issued FIL-17-2024 with materials and guidance pertaining to the Consolidated Reports of Condition and Income (Call Report) for the March 31, 2024, report date. The FIL also carried attached Supplemental Instructions.

Except for certain institutions with foreign offices, completed Call Reports must be received by Tuesday, April 30, 2024, in accordance with the filing requirements discussed below. An institution with more than one foreign office, other than a “shell” branch or an International Banking Facility, is permitted an additional five calendar days to submit its Call Report data. Such an institution must electronically file its data to the Central Data Repository no later than Sunday, May 5, 2024.

Consumer Compliance Outlook's first issue for 2024 casts a Compliance Spotlight on resources to combat increased check fraud. The article describes resources from the Federal Reserve System, FinCEN, the U.S. Postal Inspection Service, the ABA, and check service providers.

The Federal Reserve Board has announced the execution of:

• a cease and desist order issued with the consent of Mode Eleven Bancorp, the holding company of Summit National Bank, both located in Hulett, Wyoming, related to Bancorp's previous strategy focused on providing banking-related services to financial technology companies through certain nonbank subsidiaries
• a written agreement with Steele Bancshares, Inc., Tyler, Texas, and American State Bank, Arp, Texas, related to identified safety and soundness deficiencies at the bank.

The Treasury Department yesterday reported that OFAC has taken additional action against Iranian military revenue generation, targeting Oceanlink Maritime DMCC for facilitating the shipment of Iranian commodities on behalf of Iran’s Armed Forces General Staff and Ministry of Defense and Armed Forces Logistics. OFAC also identified 13 vessels managed by Oceanlink Maritime DMCC as blocked property.

For identification information on the designated company and vessels, see BankersOnline's April 4, 2024, OFAC Update.

The OCC has reported that Acting Comptroller of the Currency yesterday discussed the importance of fairness in remarks given at the National Community Reinvestment Coalition Just Economy Conference 2024.

Mr. Hsu highlighted bank progress in overdraft protection program reforms since the OCC issued guidance last April and provided an update on Project REACh accomplishments regarding credit invisibles, minority depository institutions and affordable housing. Additionally, he discussed the importance of ensuring fairness as it relates to artificial intelligence and fraud.

The OCC has announced its support of National Financial Capability Month in April, and encouraged national banks and federal savings associations to support this annual commemoration by recommitting their focus on improving the financial capability and financial health of their customers.

Banks and FSAs can promote financial capability through high-quality financial literacy education, as well as through improved access to financial services for all consumers, especially those who are underserved.

The OCC is dedicated to making resources available to help banks deliver top-tier financial literacy education and services. The OCC’s Community Affairs office issues publications and provides resources to banks on financial capability and financial literacy topics including the recently updated Community Developments Fact Sheet on Financial Capability, the quarterly Financial Literacy Update and the Financial Literacy Resource Directory.

The NCUA has announced it issued two prohibition notices and one consent order in March 2024, permanently prohibiting individuals from participating in the affairs of any federally insured depository institution.

• Sarah C. Conley, a former employee of Summit Federal Credit Union, Rochester, New York, received a notice of prohibition, having been convicted of grand larceny in connection with illegal activities at the credit union
• Carlene Bartley, formerly employed by Municipal Credit Union, New York, New York, was issued a notice of prohibition, having pleaded guilty to, and having been convicted on, charges of grand larceny
• Esther A. Olson, a former assistant branch manager of Educational Employees Credit Union, Fresno, California, received a consent order of prohibition, after a finding that she had embezzled funds from member accounts, including the withdrawal of over $60,000 from four different members' share accounts

The FDIC has updated the following sections of its Consumer Compliance Examination Manual (CEM):

• Communicating Findings (II-6.1): Updated to clarify when the self-identification of violations is considered a strength of a bank’s Compliance Management System
• Expedited Funds Availability Act (VI-1.1): Updated with technical changes related to regulatory dollar-amount thresholds and large deposit hold times
• FTC Rule - Preservation of Claims and Defenses (VII-2.1): Removed an invalid exception in a chart