All in Regulatory Update

CFPB and FTC Issues Amicus Brief on Unlawful Mortgage Fees

Adam Witmer
Regulatory Update

On February 27, 2024, the CFPB published an article describing the recent increase in unlawful fees in the mortgage market resulting in increase of mortgage fees and other costs for consumers. It also announced that in recent court case against a mortgage servicer, the CFPB and the FTC jointly issued an Amicus Brief to reiterate that Fair Debt Collection Practices Act (FDCPA) Section 1692f(1) prohibits debt collectors from collecting “any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.” 

FATF Updates List of Deficient Countries

Adam Witmer
BSA, Regulatory Update

On February 29, 2024, 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 last 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.

FinCEN Requests Comments Regarding Information Collection Extension for Beneficial Ownership

Adam Witmer
Regulatory Update

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.

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.

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.

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.

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.

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. 

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