All in Regulatory Update

FinCEN Issues Alert to Counter Financing of Hizballah and Its Terrorist Activities

Adam Witmer
BSA, Regulatory Update

On October 23, 2024, FinCEN issued an alert to assist financial institutions in identifying and reporting suspicious activity supporting Lebanese Hizballah (Hizballah), a U.S.-designated Foreign Terrorist Organization. The alert builds upon the agency’s May 2024 advisory on Iran-backed terrorist organizations and offers a comprehensive overview of Hizballah’s global criminal financial networks.

FinCEN Issues Update to the Public Utility Exemption Under the BOI Reporting Rule

Adam Witmer
Regulatory Update

On October 18, 2024, FinCEN published a final rule in the Federal Register to clarify an exemption under the beneficial ownership information reporting rule that FinCEN published on September 30, 2022. The rule modifies the language exempting certain public utilities from the definition of “reporting company” in the beneficial ownership information reporting rule to more clearly implement the language of the exemption found in the Corporate Transparency Act (CTA).

FDIC Extends Compliance Date for Subpart A of Part 328 Final Rule

Adam Witmer
Regulatory Update

On October 17, 2024, the FDIC announced that it is providing financial institutions additional time to get new processes and systems in place by extending the compliance date for the new FDIC signage and advertising rule from January 1, 2025, to May 1, 2025.  The extension applies only to a portion of the final rule designed to modernize the rules governing the use of the official FDIC signs and advertising statements, that is Part 328, subpart A.

CFPB and DOJ Take Action Against Fairway for Redlining Violations

Adam Witmer
Fair Lending, Regulatory Update

On October 15, 2024, the CFPB and the DOJ took action against Fairway Independent Mortgage Corporation for illegal mortgage lending discrimination against majority-Black neighborhoods in the greater Birmingham, Alabama area. According to the CFPB and DOJ, Fairway illegally redlined Black neighborhoods, including through its marketing and sales actions, by discouraging people from applying for mortgage loans in the Birmingham metropolitan area’s Black neighborhoods.

OCC Issues Cease and Desist Order Against TD Bank for BSA/AML Deficiencies

Adam Witmer
BSA, Regulatory Update

On October 10, 2024, the OCC announced a cease and desist order and a $450 million civil money penalty against TD Bank, N.A. and TD Bank USA, N.A., for deficiencies in the bank’s BSA and AML compliance program. The OCC determined that the bank failed to develop and maintain a BSA/AML program reasonably designed to assure and monitor compliance with the BSA and its implementing regulations.

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