On July 6, the Financial Crimes Enforcement Network (“FinCEN”), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (collectively, “the Agencies”) issued a Joint Statement to “remind” banks that they, of course, should apply a risk-based approach to assessing customer relationships and conducting customer due diligence (“CDD”).… Continue Reading
NCUA
CFPB/federal banking agencies/state financial regulators announce end of flexible supervisory and enforcement approach to mortgage servicer compliance
In the latest demonstration that there’s a “new CFPB” as well as other new regulatory sheriffs in town, the CFPB, the federal banking agencies (OCC, FDIC, Federal Reserve Board, and NCUA), and state financial regulators issued a joint statement yesterday to announce that they will no longer provide “supervisory and enforcement flexibility” to mortgage servicers in meeting compliance requirements. … Continue Reading
CFPB, federal and state bank and credit union regulators warn of increased supervisory scrutiny in joint statement on managing LIBOR transition
The CFPB, Federal Reserve Board, FDIC NCUA, OCC, in conjunction with the state bank and state credit union regulators, jointly issued a statement on managing the transition away from LIBOR (Joint Statement).
In 2017, the United Kingdom’s Financial Conduct Authority (FCA), the regulator that oversees the panel of banks on whose submissions LIBOR is based, announced that it would discontinue LIBOR sometime after 2021.… Continue Reading
Federal banking regulators to testify at House Financial Services Committee May 19 hearing
On May 19, 2021, the House Financial Services Committee will hold a hearing, “Oversight of Prudential Regulators: Ensuring the Safety, Soundness, Diversity, and Accountability of Depository Institutions.” The scheduled witnesses are:
- Todd Harper, Chairman, National Credit Union Administration
- Michael Hsu, Acting Comptroller of the Currency, Office of the Comptroller of the Currency
- Jelena McWilliams, Chairman, Federal Deposit Insurance Corporation
- Randal Quarles, Vice Chairman of Supervision, Board of Governors of the Federal Reserve System
Acting Comptroller Hsu is expected to be questioned about the OCC’s Community Reinvestment Act rule, its special purpose national bank charter for nondepository companies, and its fair access rule. … Continue Reading
Federal agencies propose revisions to interagency Q&As regarding flood insurance
Recently, federal agencies proposed revisions to the Interagency Questions and Answers Regarding Flood Insurance. The agencies are the Comptroller of the Currency, Farm Credit Administration, FDIC, Federal Reserve Board, and National Credit Union Administration (Agencies). The proposed Q&As will supplement the proposed Q&As issued by the Agencies in July 2020. … Continue Reading
CFPB and federal banking agencies issue RFI on the use of artificial intelligence by financial institutions
In what could be an important step towards needed regulatory updating to accommodate the growing use of artificial intelligence (AI) by financial institutions, the CFPB, FDIC, OCC, Federal Reserve Board, and NCUA issued a request for information (RFI) regarding financial institutions’ use of AI, including machine learning (ML). Comments on the RFI must be received by June 1, 2021.… Continue Reading
CFPB and federal banking agencies issue final rules on role of supervisory guidance
The CFPB, OCC, FDIC and NCUA have issued substantially similar final rules on the role of supervisory guidance. The final rules adopt the agencies’ proposals without substantive change.
In September 2018, the agencies issued an “Interagency Statement Clarifying the Role of Supervisory Guidance.” In response to the Statement, the agencies received a petition requesting a formal rulemaking on the subject. … Continue Reading
Federal banking regulators to appear before House and Senate committees this week
On November 10, the Senate Banking Committee will hold a hearing, “Oversight of Financial Regulators.”
On November 12, the House Financial Services Committee will hold a hearing, “Oversight of Prudential Regulators: Ensuring the Safety, Soundness, Diversity, and Accountability of Depository Institutions during the Pandemic.”
The scheduled witnesses at both hearings are:
- Brian Brooks, Acting Comptroller of the Currency
- Randal Quarles, Vice Chairman of Supervision, Federal Reserve Board
- Rodney Hood, Chairman, NCUA
- Jelena McWilliams, Chairman, FDIC
CFPB and federal banking agencies issue proposed rule on role of supervisory guidance
The CFPB, OCC, Federal Reserve, FDIC, and NCUA have issued a proposed rule on the role of supervisory guidance.
In September 2018, the agencies issued an “Interagency Statement Clarifying the Role of Supervisory Guidance.” In response to the Statement, the agencies received a petition requesting a formal rulemaking on the subject. … Continue Reading
Federal banking agencies issue joint statement on enforcement of BSA/AML requirements; FinCEN follows with its own statement
Regulators Provide Greater Transparency into BSA/AML Enforcement Process. On August 13, 2020, the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency (the “Agency” or collectively the “Agencies”) issued a joint statement updating and clarifying their 2007 guidance regarding how they evaluate enforcement actions when financial institutions violate or fail to meet BSA/AML requirements. … Continue Reading