FinCEN Requests Comments on Infomation Collection for Residential Real State Final Rule

Adam Witmer
Regulatory Update

On November 13, 2024, FinCEN issued a notice and request for comments on the proposed information collection associated with the requirement to report information about certain residential real estate transfers, as required by the Anti-Money Laundering Regulations for Residential Real Estate Transfers final rule published on August 29, 2024. Comments will be accepted until January 13, 2025.

FinCEN Issues Alert on Deepfake Media Targeting Financial Institutions

Adam Witmer
Regulatory Update, BSA

On November 13, 2024, FinCEN issued an alert to help financial institutions identify fraud schemes associated with the use of deepfake media created with generative artificial intelligence (GenAI) tools. The alert explains typologies associated with these schemes, provides red flag indicators to assist with identifying and reporting related suspicious activity, and reminds financial institutions of their reporting requirements under the Bank Secrecy Act.

CFPB Publishes Report on Monetization of Consumer Data

Adam Witmer
Regulatory Update

On November 12, 2024, the CFPB published a report ‘State Consumer Privacy Laws and the Monetization of Consumer Financial Data” which summarizes the state laws that give consumers more control over their data, how these rights complement the protections under federal law, and the gaps in protection that result from state law exemptions for financial institutions subject to the Gramm-Leach-Bliley Act (GLBA) or the Fair Credit Reporting Act (FCRA). 

FTC Takes Action Against Cash Advance App Dave for Deceptive Practices and Hidden Fees

Adam Witmer
Regulatory Update

On November 5, 2024, the FTC took action against online cash advance app Dave for allegedly using misleading marketing to deceive consumers about the amount of its cash advances, charging consumers undisclosed fees, and charging so-called “tips” to consumers without their consent. Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said that Dave lured in consumers living paycheck-to-paycheck with false claims of big-dollar advances, then reached into their pockets to give itself a so-called ‘tip’.

NFIP Issues Final Rule That Provides Insurance Installment Payment Plan

Adam Witmer
Regulatory Update

On November 4, 2024, the Federal Emergency Management Agency (FEMA) issued a final rule revising the National Flood Insurance Program’s  (NFIP) regulations to offer NFIP policyholders the option of paying their annual flood insurance premium in monthly installments. The NFIP is a voluntary program in which interested persons can purchase flood insurance for their property if it is located in a community that participates in the NFIP by adopting and enforcing a set of minimum floodplain management requirements to reduce future flood damages.

CFPB Issues Order Against Townstone Financial for Redlining

Adam Witmer
Regulatory Update, Fair Lending

On November 1, 2024, the CFPB filed a proposed order to resolve its case against Townstone Financial for discriminatory lending practices and redlining African American neighborhoods in Chicago. The proposed order would prohibit Townstone from taking any actions that violate the Equal Credit Opportunity Act (ECOA) and require the company to pay a $105,000 penalty to the CFPB’s victims relief fund. 

FATF Updates List of Deficient Countries

Adam Witmer
BSA, Regulatory Update

On October 30, 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.

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