Feb 27
Feb 27 FinCEN Requests Comments Regarding Information Collection Extension for Beneficial Ownership

On February 26, 2024, FinCEN issued a notice and request for comments on the renewal, without change, of existing information collection requirements related to beneficial ownership requirements for legal entity customers. Under BSA, covered financial institutions are required to collect, and to maintain records of, the information used to identify and verify the identity of each beneficial owner of their legal entity customers, subject to certain exclusions and exemptions.

Feb 26
Feb 26 FinCEN Requests Comments Regarding Information Collection Extension for GTOs

Adam Witmer

BSA, Regulatory Update

On February 23, 2024, FinCEN issued a notice and request for comments on the proposed renewal, without change, of an existing information collection relating to records of certain domestic transactions, commonly referred to as geographic targeting orders (GTOs). The information required to be recorded and reported pursuant to a GTO is basic information that a domestic financial institution or domestic nonfinancial trade or business would have access to in the normal course of doing business, such as payment, receipt, or transfer of funds information.

Feb 26
Feb 26 FinCEN Holds First FinCEN Exchange with Puerto Rican Financial Institutions

Adam Witmer

Regulatory Update, BSA

On February 22, 2024, FinCEN announced that Director Andrea Gacki traveled to Puerto Rico from February 20-22 to attend the 20th Annual Puerto Rico Bankers Association Symposium of Anti-Money Laundering and to meet with Puerto Rican officials to discuss illicit finance threats. Gacki’s engagement with Puerto Rican financial institutions and officials highlights FinCEN’s collaborative efforts to combat public corruption, fraud, and drug trafficking.

Feb 22
Feb 22 CFPB Finds Large Banks Charge Higher Credit Card Interest Rates than Small Banks and Credit Unions

Adam Witmer

Regulatory Update

On February 16, 2024, the CFPB revealed, through Terms of Credit Card Plans survey, that large banks are offering higher credit card terms and interest rates than small banks and credit unions, regardless of credit risk. The CFPB found that the 25 largest credit card issuers charged customers interest rates of 8 to 10 points higher than small- and medium-sized banks and credit unions, which can translate to $400 to $500 in additional annual interest for the average cardholder.

Feb 21
Feb 21 OCC Takes Action Against Blue Ridge Bank for BSA Violations

Adam Witmer

Regulatory Update, BSA

In February 2024, the OCC announced it had issued a consent order against Blue Ridge Bank, N.A. for, among other things, violations related to their BSA program. Specifically, the consent order states that the bank has failed to establish and maintain a reasonably designed BSA /ML program that adequately covers required BSA/AML program components.

Feb 21
Feb 21 FinCEN Publishes Small Entity Compliance Guide for BOI Access

Adam Witmer

BSA, Regulatory Update

In February 2024, FinCEN published the Small Entity Compliance Guide for Beneficial Ownership Information Access and Safeguards Requirements intended to help small entities comply with the Beneficial Ownership Information Access and Safeguards Rule. The Compliance Guide provides an overview of the Beneficial Ownership Information Access and Safeguards Rule requirements for small entities that obtain BOI from FinCEN.

Feb 19
Feb 19 OCC Fines Sterling Bank’s Former SVP

Adam Witmer

Regulatory Update

On February February 5, 2024, the OCC initiated prohibition and civil money penalty proceedings against Stephen Adams, a former Senior Vice President Managing Director of Residential Lending of Sterling Bank and Trust, FSB. Adams is ordered to pay a civil money penalty in the amount of $50,000.

Feb 15
Feb 15 FinCEN Proposes Rule to Counter Illicit Finance and Security Threats in Investment Adviser Sector

Adam Witmer

Regulatory Update, BSA

On February 13, 2024, FinCEN issued a proposed rule to keep criminals and foreign adversaries from exploiting the U.S. financial system and assets through investment advisers. The proposed rule aims to include certain investment advisers in the definition of “financial institution” under the BSA, prescribe minimum standards for anti-money laundering/countering the financing of terrorism (AML/CFT) programs to be established by covered investment advisers, require covered investment advisers to report suspicious activity to FinCEN pursuant to the BSA, and make several other related changes to FinCEN regulations.

Feb 14
Feb 14 FinCEN Issues Financial Trend Analysis on the Use of CVC on Online Child Exploitation

Adam Witmer

Regulatory Update, BSA

On February 13, 2024, FinCEN issued a Financial Trend Analysis (FTA) reflecting an increase in BSA reporting associated with the use of convertible virtual currency (CVC) and online child sexual exploitation (OCSE) and human trafficking, covering the period from January 2020 to December 2021. According to FinCEN, they received a total of 2,311 BSA reports referencing CVC in connection with OCSE and human trafficking, totaling over $412 million in reported suspicious activity.

Feb 13
Feb 13 FFIEC Issues Statement on Examination Principles Related to Residential Lending Valuation Discrimination and Bias

Adam Witmer

Regulatory Update, Fair Lending

On February 12, 2024, the FFIEC on behalf of its member entities, issued a statement related to valuation discrimination and bias for member entities to consider in their consumer compliance and safety and soundness examinations. The statement provides principles for the examination of supervised institutions’ residential property appraisal and evaluation (valuation) practices to mitigate risks that may arise due to potential discrimination or bias in those practices, and to promote credible valuations.