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

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.

Feb 12
Feb 12 FinCEN Proposes AML Rule for Residential Real Estate Transfers

Adam Witmer

Regulatory Update, BSA

On February 7, 2024, FinCEN issued a proposed rule to require certain persons involved in real estate closings and settlements to submit reports and keep records on identified non-financed transfers of residential real property to specified legal entities and trusts on a nationwide basis. Transfers made directly to an individual would not be covered by this proposed rule.

Feb 9

Feb 9 VIDEO: Unfair Statement Fees

Adam Witmer

UDAAP

In this Compliance Clip (video), Adam discusses how financial institutions can avoid a potential unfair act or practice when it comes to assessing statement fees and returned statement fees. Adam explains how this practice can result to a risk of UDAAP violation and shares some steps on how to make sure your financial institution is doing it right. A transcript of this video is now available.

Feb 9
Feb 9 ENTER TO WIN: UDAAP Bootcamp

Adam Witmer

In cased you missed it, we are giving away one free enrollment to our UDAAP Bootcamp. Our UDAAP Bootcamp provides you with foundational training about Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) as well as help you know what to look for in your organization. This class covers two main areas. The program starts with a history and overview of UDAAP guidance while it concludes by covering a good number of known UDAAP violations - which attendees can essentially use as a checklist to make sure their organizations are free from many known UDAAP issues that have been cited as violations in other organizations. To enter the giveaway, just complete a quick entry form at www.compliancecohort.com/entry. To learn more about this program, go to: www.compliancecohort.com/udaap-bootcamp