Stop by Daily for What's Hot Right Now in Compliance & Risk for Credit Unions & Banks

Credit unions that charge unanticipated overdraft or NSF fees may face significant reputational, compliance, third-party, and legal risks, as such practices are considered unfair or deceptive under federal consumer protection laws, and should review and mitigate these practices to avoid harm to members. [12/19/24]

The U.S. Department of the Treasury’s FinCEN, along with federal and state financial regulators, has issued a statement offering risk management guidance to help combat elder financial exploitation, which has resulted in approximately $27 billion in suspicious activity reports over the past year. [12/5/24]

The CFPB's first Student Loan Borrower Survey reveals that while 61% of borrowers who received debt relief reported positive life changes, many borrowers remain unaware of alternative repayment options, with nearly 42% only using the standard repayment plan and struggling to navigate more affordable options. [11/14/24]

The CFPB has ordered Navy Federal Credit Union to refund over $80 million for charging illegal overdraft fees from 2017 to 2022, including fees on transactions with sufficient funds and delayed peer-to-peer payments, and imposed a $15 million civil penalty, marking the largest penalty ever levied by the CFPB against a credit union. [11/7/24]

Nacha has introduced a new feature in its Risk Management Portal allowing financial institutions to communicate directly about International ACH Transactions (IATs) through the IAT Exception – Request for Information form, enabling them to request essential details for compliance and risk assessment while ensuring secure exchanges of information between the receiving and originating depository financial institutions (RDFIs and ODFIs). [10/31/24]

Acting Comptroller of the Currency Michael J. Hsu emphasized the importance of systematic frameworks for identifying and addressing systemic risk, while advocating for a balance between decisive action and an understanding of the evolving market landscape during a discussion with the CFA Institute Systemic Risk Council. [10/31/24]

The NCUA urges credit union boards to prioritize cybersecurity governance and risk management, emphasizing the need for ongoing training, comprehensive security programs, effective oversight of third-party vendors, incident response planning, and member education to combat increasing cyber threats. [10/24/24]

Regulatory agencies, including the FDIC and Federal Reserve, are offering assistance to financial institutions impacted by Hurricane Milton, encouraging them to support affected borrowers, expedite temporary facility operations, and adjust compliance and reporting requirements to address the disaster's challenges. [10/17/24]

Nacha is proposing enhancements to Same Day ACH, including a fourth daily submission window to better accommodate users in the Pacific time zone and a change to accelerate funds availability for certain next-day ACH credits, while also seeking industry feedback on potential future rule amendments. [10/10/24]

In a record breaking fine; FinCEN has imposed a record $1.3 billion penalty, along with the DOJ imposing a $1.8 billion penalty, OCC imposing a $450 million penalty, and the Federal Reserve imposing a $123.5 million penalty. These penalties are on TD Bank for severe violations of the Bank Secrecy Act, highlighting the bank's chronic failures in its anti-money laundering program that facilitated illicit activities like drug trafficking and human trafficking. [10/10/24]

America's Credit Unions Compliance Blog discusses cybersecurity, Regulation B compliance, and more. [9/27/24]

The CFPB has fined TD Bank $27.76 million for persistently providing inaccurate and fraudulent information to consumer reporting agencies, including erroneous credit card delinquencies and fraudulent account details, and for failing to properly address consumer disputes. [9/12/24]

The OCC issued a comprehensive cease-and-desist order against USAA Federal Savings Bank for deficiencies in management, earnings, IT, consumer compliance, and fraud risk management, requiring corrective actions and imposing limitations on new products and services. [12/19/24]

The FFIEC released 2023 data on small business, small farm, and community development lending, as required by the Community Reinvestment Act, along with aggregate disclosure statements for all U.S. metropolitan and non-metropolitan areas. [12/19/24]

Federal bank regulatory agencies have issued a third notice requesting public comments on outdated or unnecessary regulations under the Economic Growth and Regulatory Paperwork Reduction Act, focusing on rules in three categories: Rules of Procedure, Safety and Soundness, and Securities. [12/5/24]

The U.S. Department of the Treasury’s FinCEN, along with federal and state financial regulators, has issued a statement offering risk management guidance to help combat elder financial exploitation, which has resulted in approximately $27 billion in suspicious activity reports over the past year. [12/5/24]

The CFPB's first Student Loan Borrower Survey reveals that while 61% of borrowers who received debt relief reported positive life changes, many borrowers remain unaware of alternative repayment options, with nearly 42% only using the standard repayment plan and struggling to navigate more affordable options. [11/14/24]

In 2023, the FDIC survey found that 96% of U.S. households were banked, but significant disparities persist, with 4.2% of households (5.6 million) remaining unbanked, especially among lower-income, minority, and disabled groups, while mobile banking and nonbank online payment services like PayPal and Venmo saw increased use. [11/14/24]

Nacha has introduced a new feature in its Risk Management Portal allowing financial institutions to communicate directly about International ACH Transactions (IATs) through the IAT Exception – Request for Information form, enabling them to request essential details for compliance and risk assessment while ensuring secure exchanges of information between the receiving and originating depository financial institutions (RDFIs and ODFIs). [10/31/24]

Acting Comptroller of the Currency Michael J. Hsu emphasized the importance of systematic frameworks for identifying and addressing systemic risk, while advocating for a balance between decisive action and an understanding of the evolving market landscape during a discussion with the CFA Institute Systemic Risk Council. [10/31/24]

The OCC finalized revisions to its recovery planning guidelines for large banks, expanding them to institutions with at least $100 billion in assets and incorporating testing standards and non-financial risk considerations, effective January 1, 2025. [10/24/24]

Regulatory agencies, including the FDIC and Federal Reserve, are offering assistance to financial institutions impacted by Hurricane Milton, encouraging them to support affected borrowers, expedite temporary facility operations, and adjust compliance and reporting requirements to address the disaster's challenges. [10/17/24]

Nacha is proposing enhancements to Same Day ACH, including a fourth daily submission window to better accommodate users in the Pacific time zone and a change to accelerate funds availability for certain next-day ACH credits, while also seeking industry feedback on potential future rule amendments. [10/10/24]

The CFPB's report highlights challenges faced by homeowners dealing with mortgage companies after a divorce or the death of a borrower, including pressure to refinance at higher rates, delays in processing paperwork, refusal to release the original borrower from liability, and risks to domestic violence survivors, urging servicers to better comply with federal rules and protect homeowner rights. [12/19/24]

The U.S. Department of the Treasury’s FinCEN issued an alert warning the public about fraud schemes exploiting its name and authority for financial gain, providing guidance on how to recognize and report such scams. [12/19/24]

The U.S. Department of the Treasury's OFAC announced a $14,550,000 settlement with Aiotec GmbH for violating Iranian sanctions by participating in a conspiracy to indirectly sell and supply an Australian polypropylene plant to Iran and process payments through U.S. financial institutions. [12/5/24]

The OCC has released version 1.1 of its "Unfair or Deceptive Acts or Practices and Unfair, Deceptive, or Abusive Acts or Practices" booklet, providing updated guidance for bank examiners on compliance with UDAP and UDAAP regulations, replacing the 2020 version. [12/5/24]

FinCEN issued an alert to help financial institutions detect fraud schemes involving deepfake media created with generative AI, highlighting red flags and reporting requirements to combat identity fraud and cybercrime. [11/14/24]

The U.S. Treasury's FinCEN issued a 60-day notice for public comments on the reporting form real estate professionals will use under the new Residential Real Estate Rule, aimed at combating illicit finance in high-risk, non-financed residential property transfers starting December 1, 2025. [11/14/24]

FinCEN has extended the deadline by six months for certain victims of hurricanes Milton, Helene, Debby, Beryl, and Francine to submit or update beneficial ownership information reports. [11/7/24]

FinCEN informs U.S. financial institutions of the FATF's updated lists of jurisdictions with strategic anti-money laundering and counterterrorism financing deficiencies, highlighting new additions, removals, and ongoing risks for compliance with U.S. due diligence and sanctions obligations. [11/7/24]

The CFPB has taken action against VyStar Credit Union for consumer harm caused by a poorly executed rollout of a new online banking system in May 2022, which left members unable to access their accounts and incurred fees, resulting in a $1.5 million penalty and an order for VyStar to refund affected consumers and improve its banking system processes. [10/31/24]

On October 24-25, FinCEN and FINTRAC co-hosted an Anti-Money Laundering/Anti-Terrorist Financing Symposium in Ottawa, uniting financial intelligence units and law enforcement from several countries to address critical issues like terrorist financing and sanctions evasion, while emphasizing collaborative efforts such as joint sanctions against entities like the Samidoun network and the establishment of public-private partnerships to combat various forms of illicit financing. [10/31/24]

FinCEN has notified U.S. financial institutions about recent updates from the FATF regarding jurisdictions with strategic deficiencies in anti-money laundering and counter-terrorism financing measures, including the addition of Algeria, Angola, Côte d'Ivoire, and Lebanon to the Increased Monitoring list, while reinforcing the need for enhanced due diligence in dealings with high-risk jurisdictions like Iran and North Korea. [10/31/24]