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OFAC has posted a notice that it has issued Venezuela-related General Licenses 3D (“Authorizing Transactions Related to, Provisions of Financing for, and Other Dealings in Certain Bonds") and 9C (“Authorizing Transactions Related to Dealings in Certain Securities"). FAQs 661 and 662 were also updated.

The FDIC has issued FIL-11-2019 to provide guidance to help financial institutions and facilitate recovery in areas of Alabama affected by severe storms, straight-line winds and tornadoes.

The Financial Stability Oversight Council (FSOC) yesterday voted unanimously to issue for public comment proposed interpretive guidance on nonbank financial company designations. The proposed guidance would implement an activities-based approach to identifying and addressing potential risks to financial stability. It would also enhance the analytical rigor and transparency of the Council’s process for designating nonbank financial companies. Under the guidance, the Council would:

• Prioritize its efforts to identify, assess, and address potential risks to U.S. financial stability through an activities-based approach. The Council would monitor diverse financial markets and market developments in consultation with relevant financial regulatory agencies. In the event a potential risk to U.S. financial stability is identified, the Council would leverage the expertise of existing regulators in pursuing the implementation of actions to address the risk.
• Perform a cost-benefit analysis before designating any nonbank financial company. The Council would consider the benefits and costs of a designation for the U.S. financial system and the relevant company. The Council would designate a nonbank financial company only if the expected benefits justify the expected costs of the designation.
• Assess the likelihood of a nonbank financial company’s material financial distress when evaluating the firm for a potential designation. Before designating a nonbank financial company, the Council would consider not only the impact of an identifiable risk, but also the likelihood that the risk will be realized. Doing so will ensure that the Council remains focused on those risks that are most likely to pose a threat to U.S. financial stability.
• Create a more efficient and effective nonbank financial company designation process. The proposed guidance would create a more efficient and effective designation process by condensing the current three-stage process into two stages, increasing engagement and transparency to firms and their regulators, and creating off-ramps that allow firms to understand and address potential risks to financial stability

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The CFPB has posted an article with information on how individuals can protect themselves from contacts who pretend to be from the IRS. The article notes the IRS will never:

• Call to demand immediate payment with a prepaid debit card, gift card, or wire transfer
• Threaten to bring in local police or other law-enforcement groups to have an individual arrested or deported for not paying
• Demand payment without giving an individual the opportunity to question or appeal the amount they say is owed
• Contact individuals by email, text message, or through social media to request personal or financial information such as PINs, passwords, credit card, bank, or other account information

The Federal Trade Commission is seeking comment on proposed amendments to two rules that protect the privacy and security of customer information held by financial institutions. In separate notices to be published in the Federal Register, the FTC is seeking comment on proposed changes to the Safeguards Rule and the Privacy Rule under the Gramm-Leach-Biliey Act. The Safeguards Rule, which went into effect in 2003, requires a financial institution to develop, implement, and maintain a comprehensive information security program. The Privacy Rule, which went into effect in 2000, requires a financial institution to inform customers about its information-sharing practices and allow customers to opt out of having their information shared with certain third parties.

The Federal Trade Commission has announced it is sending refund checks totaling more than $7 million to people deceived by the operators of an alleged business opportunity fraud that targeted seniors and others living on a fixed income. The refunds stem from a settlement the Commission reached in 2017 with Advertising Strategies, LLC, under which the defendants surrendered virtually all their assets to provide consumer refunds.

The OCC has issued its Alert 2019-1 concerning counterfeit official bank checks of Bremer Bank, NA, Saint Paul, Minnesota. For details, see our Alerts & Counterfeits listing.

OFAC has designated Harakat al-Nijjaba, operating in Iraq and Syria, and updated an Iraqi national's existing Iraq-related listing to designate him, both under the Global Terrorism Sanctions program. For identification information, see our OFAC Update.

The Financial Action Task Force (FATF) has published its March 2019 Business Bulletin, which contains a brief update highlighting the FATF’s decisions and new products that they feel are particularly relevant for businesses.

OFAC has announced its designation of six Venezuelan government officials who are aligned with illegitimate former President Nicolas Maduro and associated with the obstruction of humanitarian aid deliveries into Venezuela on February 23, 2019. The action targets six security officials who control many of the groups that prevented humanitarian aid from entering Venezuela, thereby exacerbating the humanitarian crisis that has left millions of Venezuelans starving and without access to medical care under the Maduro regime. For identification information on these individuals, see our OFAC Update.