All in Regulatory Update

FRB Issues Consent Order Against Deutsche Bank AG

Adam Witmer
Regulatory Update, BSA

On July 19, 2023, the Federal Reserve Board issued a consent order against Deutsche Bank AG, its New York branch, and other U.S. affiliates. The consent order requires Deutsche bank to pay a $186 million fine based on unsafe and unsound practices and violations of the Board's 2015 and 2017 consent orders with Deutsche Bank relating to sanctions compliance and anti-money laundering controls. 

CFPB Sues Prehired For Illegal Student Lending Practice

Adam Witmer
Regulatory Update

On July 13, 2023, the CFPB joined with several state attorneys general and a state regulator to take action against Prehired for deceptive marketing and debt collection practices. The attorneys general from Washington, Oregon, Delaware, Minnesota, Illinois, Wisconsin, Massachusetts, North Carolina, South Carolina, and Virginia joined the action, along with California’s Department of Financial Protection and Innovation.

New Director of FinCEN Announced

Adam Witmer
Regulatory Update

On July 13, 2023, Secretary of the Treasury Janet L. Yellen announced the appointment of Andrea Gacki as the Director of the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Acting FinCEN Director Himamauli “Him” Das will continue in his role during the transition period and assist Gacki in her onboarding process.

CFPB Issues Amicus Brief Concerning TILA

Adam Witmer
Regulatory Update, Regulation Z

On July 12, 2023, the CFPB joined the State of Maine to help ensure that consumers receive critical consumer protections when taking out loans by filing an amicus brief in the Maine Supreme Judicial Court in a case involving a married couple’s loan. Maine law incorporates the federal Truth in Lending Act that provides crucial consumer protections, including requiring lenders to provide precise information about the amount of a loan, its interest rate and other costs, and when it must be repaid.

SEC Takes Action Against Merrill Lynch and BACNAH for Failing to File SARs

Adam Witmer
Regulatory Update, BSA

On July 11, 2023, the SEC announced charges against Merrill Lynch, Pierce, Fenner & Smith Incorporated and its parent company BAC North America Holding Co. (BACNAH) for failing to file hundreds of Suspicious Activity Reports (SARs) from 2009 to late 2019. To settle the SEC charges, Merrill Lynch agreed to pay a $6 million penalty. Merrill Lynch also agreed to pay a $6 million fine to settle charges brought by the Financial Industry Regulatory Authority (FINRA).

CFPB Fines Bank of America for Multiple Violations

Adam Witmer
Regulatory Update, UDAAP, Regulation Z

On July 11, 2023, the CFPB ordered Bank of America to pay more than $100 million to customers for systematically double-dipping on fees imposed on customers with insufficient funds in their account, withholding reward bonuses explicitly promised to credit card customers, and misappropriating sensitive personal information to open accounts without customer knowledge or authorization. Bank of America will pay a total of $90 million in penalties to the CFPB and $60 million in penalties to the OCC, which also found that the bank’s double-dipping on fees was illegal.

CFPB Releases 2022 Fair Lending Annual Report to Congress

Adam Witmer
Regulatory Update, Fair Lending

On June 29, 2023, the CFPB released its Fair Lending Annual Report to Congress, describing its fair lending activities in enforcement and supervision; guidance and rulemaking; interagency coordination; and outreach and education for calendar year 2022. The Fair Lending Annual Report to Congress fulfills the Bureau’s statutory responsibility to report annually to Congress on public enforcement actions taken under the ECOA as well as the utility of the HMDA’s mortgage loan data collection requirements.

FinCEN Issues Updated FATF Deficient Countries

Adam Witmer
Regulatory Update, BSA

On Jun 29, 2023, FinCEN issued a press release to inform U.S. financial institutions that the Financial Action Task Force (FATF), an intergovernmental body that establishes international standards to combat money laundering, counter the financing of terrorism, and combat weapons of mass destruction proliferation financing (AML/CFT/CPF), has issued public statements updating its lists of jurisdictions with strategic AML/CFT/CPF deficiencies following its plenary meeting this month.  U.S. financial institutions should consider the FATF’s stance toward these jurisdictions when reviewing their obligations and risk-based policies, procedures, and practices.

Load More