CFPB Fines Global Tel Link for UDAAP Violations

Adam Witmer
Regulatory Update, UDAAP

On November 14, 2024, the CFPB took action against Global Tel Link (GTL) for illegally taking millions of dollars from over 500,000 accounts and blocking money transfers to incarcerated consumers, who depend on the funds for essentials like food, medicine, and clothing. The CFPB ordered GTL and its subsidiaries to stop their illegal practices, pay at least $2 million in redress to victims, and pay a $1 million penalty to the CFPB’s victims relief fund.

FRFS Expands FedDetect to Commercial Checks

Adam Witmer
Regulatory Update

On November 13, 2024, the Federal Reserve Financial Services (FRFS) announced the expansion of FedDetect Duplicate Notification for Check Services to include commercial checks, alongside its existing Treasury check notification service. Financial institutions can now see deposit information and images of potential duplicate items for commercial checks, supplementing their existing check fraud mitigation tools.

VIDEO: Updating the Board on 1071

VIDEO: Updating the Board on 1071

Adam Witmer

In this Compliance Clip (video), Adam discusses how a financial institution should update their board on the new small business lending data collection and reporting requirement rule (i.e., 1071). While the regulation doesn’t require a board update per se, there are some best practices each financial institution should consider.

CFPB Study Finds Disparities in Small Business Lending

Adam Witmer
Regulatory Update

On November 13, 2024, the CFPB released a study revealing significant disparities in how lenders treat Black and white small business owners seeking loans. The study was a result of a matched-pair testing conducted by the CFPB and the DOJ to test for and detect differential treatment of fictitious well-qualified Black and white small business owners seeking credit at large bank lenders in two counties.

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). 

Load More