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Compliance News

The latest compliance news items. Past months’ news items are found under the specific Compliance Topic page related to the news item.

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September 2018 | October 2018

October News

  • FCC Seeks Comment on Scope of Dialing Equipment Covered by TCPA (10/9/18)
    The Federal Communications Commission is seeking further comment on which dialing equipment is subject to the Telephone Consumer Protection Act, which imposes restrictions on the calls that banks and other businesses can place to their customers. The FCC released the request for comment after the Ninth Circuit Court of Appeals issued a decision in Marks v. Crunch San Diego, LLC that interpreted a key term in the TCPA — “automatic telephone dialing system” (commonly known as an “autodialer”) — so expansively that it would capture most modern dialing technologies. In a prior comment letter, ABA urged the FCC to issue a new interpretation of the definition of an autodialer to ensure that customers can receive important communications from their banks. Contact Jonathan Thessin​ for more information. See also ABA's TCPA page .
  • ABA Staff Analysis: Updates to FCRA Model Disclosure Forms  (10/9/18)
    ABA issued a summary on the Bureau's interim final rule​ to update the Bureau’s model forms about consumers' rights to "freeze" their credit reports without charge. See also the FTC's FAQs on new credit report freeze rights and fraud alerts. ABA members must login to view the document. For more information, contact Nessa Feddis.
  • ABA Staff Analysis: Final Amendments to Regulation CC  (10/4/18)
    ABA issued a summary and guidance on the Federal Reserve Board's final amendments to Regulation CC. The ABA-supported Final Rule addresses situations where there is a dispute as to whether a check has been altered or was issued with an unauthorized signature, and the original paper check is not available for inspection. ABA's staff analysis provides definitions on altered check and unauthorized check, and a summary of the rule. ABA members must login to view the document. For more information, contact Nessa Feddis.
  • Agencies Issue Statement on Sharing Resources for BSA Compliance (10/4/18)
    The financial regulatory agencies and the Financial Crimes Enforcement Network issued a joint statement outlining how banks may enter into collaborative arrangements to share resources in order to more effectively manage their Bank Secrecy Act and anti-money laundering obligations. The agencies described several situations in which collaboration might be beneficial for financial institutions, such as conducting internal control functions, independent testing and BSA/AML training. ​​​
  • Labor Department to Host Public Feedback Event on Overtime Rule (10/4/18)
    As the U.S. Department of Labor continues to examine potential revisions to the Obama administration's "overtime rule" — which was adopted in 2016 but never took effect due to a federal judge’s ruling later that year — the department has scheduled an additional public "listening session" on Oct. 17 in Washington, D.C.
  • Fed Seeks Feedback on Its Role in Faster Payments Settlement​ (10/4/18)
    The Fed is seeking comment on whether the Federal Reserve Banks should consider developing a real-time gross settlement service for faster payments that would settle faster payments using participating banks’ balances in accounts at the 12 regional Fed banks. Meanwhile, the potential liquidity management tool would operate 24/7/365 to facilitate the movement of funds during evenings, weekends and holidays when traditional settlement systems are not open.  The suggestion was made in the 2017 final report of the Faster Payments Task Force, which included more than 70 American Bankers Association member bankers. The task force’s 2017 report said that to be effective, a faster payments service would require interbank settlement within 30 minutes of an end user receiving a completed payments and that credit and liquidity risks arising from a settlement lag must be managed. Responses to the Fed’s request are due by Dec. 14. Contact Steve Kenneally​ for more information.
  • OIG Releases Report on Bureau's Management Challenges for 2018 (10/3/18)
    The Office of Inspector General (OIG) released a report on the Bureau of Consumer Financial Protection's major management challenges. The OIG identified three challenges for the Bureau: ensuring an effective information security program; managing its human capital program; and, strengthening controls and managing risks. These challenges were also identified in last year's report. This year, the challenge on managing and acquiring workspace has been removed because the Bureau has since completed renovating its office building and employees have moved in.
  • FDIC Seeks Feedback on Communication, Transparency (10/3/18)
    As part of an effort to increase efficiency and transparency, the FDIC issued a request for information seeking feedback on its communication methods and related initiatives. Comments are due 60 days after publication in the Federal Register. Specifically, the FDIC is seeking input on the various forms of communication it uses to provide information to financial institutions about regulations, policies and guidance, industry data, educational materials and other updates and how these channels could be improved or streamlined. Contact Diana Banks​ for more information.
  • FinCEN, Agencies Provide CIP Relief for Premium Finance Loans (10/1/18)
    The Financial Crimes Enforcement Network and the financial regulatory agencies announced an exemption from the customer identification program (CIP) rules for premium finance loans made by banks to commercial customers. The action is the result of a years-long advocacy effort by ABA and several member banks. FinCEN took action in 2016 (and again in 2018) to provide an exemption from beneficial ownership requirements. The exemption is another critical step that will allow banks to maintain these business lines and ensure that premium finance loans remain within the regulated financial sector.
  • FinCEN Encourages Financial Institutions Affected by Hurricane Florence to Contact FinCEN (10/1/18)
    The Financial Crimes Enforcement Network (FinCEN) is encouraging financial institutions affected by Hurricane Florence to contact FinCEN and their regulator to discuss any delays in their ability to file required Bank Secrecy Act reports. Institutions seeking to contact FinCEN should e-mail FRC@fincen.gov. FinCEN also warns financial institutions of potential fraudulent transactions in the wake of disasters.
  • Associations Call for Changes to Loan Originator Compensation Rule (10/1/18)
    In a letter to the Bureau of Consumer Financial Protection on Thursday, ABA joined several financial and real estate trade organizations in calling for amendments to the loan originator compensation rule that would ensure greater consumer protection while reducing regulatory burden on lenders. For more information, contact ABA's Rod Alba​.

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September News

  • Bureau Seeks Feedback on Data Collection, Governance (9/27/18)
    ​​​The Bureau is asking the public to comment on its data governance program and any ways that it could be improved; its data collection practices and potential changes; how the Bureau should (or should not) use data for multiple functions; ways to reduce reporting burden and increase efficiency around data collection; and any areas the Bureau could expand its data collection authority to better support its statutory objectives. The Bureau also released a report​ highlighting the ways it is currently collecting, using and safeguarding consumer data. For more information, contact ABA's Jonathan Thessin.
  • Fed’s Powell Expresses Support for CRA Modernization Effort (9/27/18)
    The Federal Reserve is “very much interested” in moving ahead with the interagency effort to update Community Reinvestment Act regulations, Fed Chairman Jerome Powell said at a press conference. The formal effort kicked off in August with an advance notice of proposed rulemaking from the OCC. ABA is encouraging all banks, regardless of their federal regulator, to respond to the OCC’s ANPR, for which comments are due by Nov. 19. Learn more at aba.com/ModernizingCRA.
  • OCC Updates TILA Booklet of Comptroller's Handbook​ (9/27/18)
    The OCC has issued an updated version of the “Truth in Lending Act” booklet of its Comptroller’s Handbook. The handbook replaces a previous version issued in December 2014 and reflects changes made to Regulation Z. ​
  • ABA Highlights Ongoing HMDA Reporting Challenges in Letter to Bureau (9/25/18)
    ABA on Sept. 25 sent a follow-up letter to the Bureau regarding a meeting to discuss ABA concerns on HMDA data. ABA shared with the Bureau the significant number of questions we continue to receive regarding how to report the new HMDA data fields – questions that ABA staff could not answer definitively by referring to the regulation or other HMDA resources. As we note in the letter, under these circumstances, "It can be expected that lenders acting reasonably and in good faith will make different interpretations, resulting in inconsistencies in how the data is reported for many of the fields." We repeated concerns raised in previous comments about the Bureau's failure to engage in an Administrative Procedure Act rulemaking to address the privacy issues presented by the public disclosure of the HMDA data. For more information, contact Virginia O'Neill.
  • ABA Urges FCC to Prevent Improper Blocking of Bank Calls (9/24/18)
    As the Federal Communications Commission (FCC) considers whether to give voice service providers greater authority to block calls believed to be illegal, ABA in a comment letter asked the FCC to exercise caution in granting providers such authority. ABA also urged the FCC to take specific steps to prevent banks' phone numbers from being incorrectly labeled and calls from those numbers blocked. ABA urged the FCC to create a "white list" of phone numbers belonging to banks and other legitimate businesses that should not be labeled in a derogatory manner and blocked by voice service providers or mobile applications. For more information, contact ABA's Jonathan Thessin​.
  • ABA to Offer Free Webinar on S. 2155 HMDA Changes​ (9/24/18)
    ABA will host a free webinar on Oct. 2 at 3 p.m. EDT exploring new partial exemptions to Home Mortgage Disclosure Act requirements that are mandated by S. 2155. During the webinar, three Bureau of Consumer Financial Protection officials will cover the operational approach to filing 2018 HMDA data, the flexibility filers have when taking a partial exemption and examples of how to take an exemption. They will also address additional HMDA tools and resources to help filers.
  • Bureau of Consumer Financial Protection's Southeast Regional Office to Relocate in Atlanta (9/21/18)
    The Bureau of Consumer Financial Protection announced on Friday that it will be relocating its southeast regional office from Washington, D.C. to Atlanta, Georgia. The move will align the Bureau with its regulatory partners that already have a regional presence in Atlanta, including the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, Bureau's news release announced. The move is anticipated to take place in late 2019.
  • NACHA Greenlights Same-Day ACH Enhancements (9/18/18)
    NACHA has approved three new rules that will expand the capabilities of same-day ACH for banks and bank customers, including expanded hours and a higher per-transaction dollar limit. The first rule — which takes effect Sept. 18, 2020 — will expand same-day ACH by two hours every business day through the creation of a new same-day ACH processing window by the two ACH network operators. The second rule will increase the same-day ACH per-transaction limit to $100,000 and takes effect March 20, 2020. Finally, the third rule NACHA approved will enable same-day ACH funds to be available faster; funds from same-day ACH credits processed in the existing first window will be made available by 1:30 p.m. local time.
  • Bureau Publishes Consumer Tips for Safer Use of Mobile Payment Services (9/14/18)
    The Bureau published a blog post advising consumers on how to avoid risky mistakes when using person-to-person or mobile payment apps. Even as use of these services becomes more common, the potential for error and fraud calls for continued vigilance, the Bureau said. The Bureau recommended caution when transacting with strangers, using payment "requests" and authentication features and understanding the payment timeframe, among other tips.
  • Bureau Releases New Resource: Interactive Regulations (9/13/18)
    The Bureau released a new version of its electronic regulations platform called Interactive Bureau Regulations (previously known as eRegulations). The information provided will be more accurate and up-to-date than what was previously available through eRegulations. Interactive Bureau Regulations also includes a new feature that allows users to select multiple regulations when conducting a word or term search. Feedback about this new resource should be sent to the Bureau.
  • ABA Staff Analysis: Annual Privacy Notice Requirement under GLBA, Effective Sept. 17 login required (9/13/18)
    ABA recently released guidance and summary on the Bureau of Consumer Financial Protection's updates to Regulation P, the rule that implements the privacy provisions in the Gramm-Leach-Bliley Act. The final rule implements a proposal issued in July 2016 to implement changes Congress made in December 2015 and reflects changes ABA recommended. ABA members must login to download the document. Contact Rob Rowe with questions.
  • Bureau Responds to ABA Concerns Over Records Disclosure Proposal in Final Rule (9/13/18)
    The final rule makes clarifying changes to the Bureau's practices related to Freedom of Information Act requests, requests for information in connection with legal proceedings, and the Privacy Act. It takes effect Oct. 12, 2018. As a result of ABA's advocacy​, the Bureau omitted from the final rule previously proposed changes that would have threatened the confidentiality of supervisory information banks provide to Bureau examiners by allowing the Bureau to disclose confidential supervisory information to any agency it deems "relevant to the exercise of the Agency's statutory or regulatory authority" — including state attorneys general, foreign regulators and state bar associations.
  • Fed Approves ABA-Supported Changes to Reg CC (9/13/18)
    As part of its ongoing effort to update Regulation CC to reflect a payments system that is largely electronic, the Federal Reserve approved changes to Reg CC’s liability provisions to address situations involving a dispute about whether portions of an electronic check have been altered or whether the item is a forgery. The changes — which ABA supported​ — take effect Jan. 1, 2019. For more information, contact ABA's Nessa Feddis.
  • Bureau Updates Model Disclosure Forms to Reflect Changes to FCRA​ (9/13/18)
    The Bureau issued an interim final rule making changes to two model disclosure forms — summary of consumer rights and summary of identity theft rights — to reflect changes made to the Fair Credit Reporting Act by S. 2155, the new regulatory reform law. The changes become effective Sept. 21, and the updated model forms are available both in English and in Spanish. The law requires consumer reporting agencies to provide consumers with the ability to freeze their credit free of charge, and for consumers to be notified of the security freeze right when receiving either of the two disclosures. It also extends to one year the minimum time that reporting agencies must include an initial fraud alert in a consumer’s file, which alerts prospective lenders that the consumer may have been a victim of identity theft.
  • Agencies Affirm: No Enforcement Actions Based on Guidance (9/12/18)
    In a joint statement, the financial regulatory agencies clarified the role of supervisory guidance in bank supervision, noting that it "does not have the force and effect of law." Regulators from the Federal Reserve, FDIC, OCC, Bureau of Consumer Financial Protection and the National Credit Union Administration affirmed that supervisory guidance is intended to outline expectations and general views regarding appropriate practices for a given subject area, and that they would not pursue enforcement actions based on it. ABA welcomed the announcement.
  • OCC, N.C. Regulator Permit Banks to Close for Hurricane Florence (9/12/18)
    With Hurricane Florence expected to make landfall on the southeastern Atlantic coast this week, the OCC and the North Carolina Commissioner of Banks preemptively authorized banks affected by the severe weather to close. The OCC also reiterated guidance intended to help banks facilitate recovery in the wake of natural disasters. Working in consultation with state bankers associations, ABA stands ready to assist bankers​ with disaster preparedness and recovery efforts.​​
  • FinCEN Grants Relief from CDD Rule for CDs, Auto-Renewals (9/10/18)
    The Financial Crimes Enforcement Network on Friday announced that it would grant relief from beneficial ownership requirements for certificate of deposit rollovers and loans that renew automatically; loans where the renewal, modification or extension does not require underwriting; and safe deposit box renewals. The exception applies to rollovers, renewals, modification or extensions occurring on or after May 11, 2018. FinCEN earlier this year granted temporary exceptive relief to CD rollover and automatically renewing loans in response to concerns raised by ABA and others in the banking industry. For more information, contact ABA's Rob Rowe.
  • Bureau Revamps Policy to Encourage Innovative Consumer Disclosures (9/10/18)
    The proposed policy addresses several concerns ABA raised about the original program in 2013. It allows groups of institutions or associations to submit applications on behalf of members, unlike the Bureau’s earlier policy. It also provides longer standard testing periods and allows testers to continue using effective disclosures while the Bureau amends its rules to incorporate successfully tested disclosures. Comments on the proposed policy are due by Oct. 10. For more information, contact ABA's Nessa Feddis.
  • Bureau: Banks Effectively Managing ECOA Compliance Risk in Small Biz Lending (9/7/18)
    With respect to small business lending, the Bureau found that the financial institutions it examined were effectively managing the risks of violations under the Equal Credit Opportunity Act (ECOA), and that boards and management teams were generally maintaining active oversight over the institutions' compliance management framework. Exams revealed, however, that banks are collecting only limited data on small business lending decisions, which the Bureau noted could affect their ability to effectively monitor and test for ECOA violations. The Bureau also flagged several issues related to mortgage servicing.
  • Changes to SCRA "Proof of Military Service" login required (9/7/18)
    Recently, there have been changes to SCRA "Proof of Military Service" requirements that should simplify the steps bankers take to verify SCRA eligibility. Previously, the requirement was to provide a copy of their military orders. The change provides greater flexibility and allows alternative methods to prove eligibility, including a letter from the person's commanding officer. Second, creditors are also granted a safe harbor by confirming eligibility for SCRA coverage using the Defense Manpower Data Center database to confirm active duty status. For questions, contact ABA's Rob Rowe​.​
  • Bureau Clarifies HMDA Partial Exemptions under S. 2155 (9/4/18)
    The Bureau of Consumer Financial Protection on Friday issued an interpretive rule clarifying several changes to Home Mortgage Disclosure Act regulations made under S. 2155, the bipartisan regulatory reform law. Under the interpretive rule, which takes effect upon being published in the Federal Register, banks subject to the partial exemptions may report exempt data fields provided that they report all data fields within any exempt data point that they do choose to report. The rule clarifies that only loans and lines of credit that are otherwise HMDA-reportable count toward the thresholds to qualify for the partial exemptions. It also specifies the 26 data points that are subject to the exemption and the 22 that are covered by the partial exemptions. For more information, contact ABA's Rod Alba.
  • ABA Issues Staff Analysis  on DOL's New Directives Affecting Compliance Reviews (9/4/18)
    ABA issued a staff analysis of five new directives announced recently by the Department of Labor’s Office of Federal Contractor Compliance Programs (OFCCP). The directives may be of interest to banks because OFCCP has asserted in a frequently asked questions document that deposit insurance is a federal contract and that all FDIC-insured banks are therefore federal contractors subject to OFCCP's authority. However, OFCCP's position is disputed by many. ABA members must login to view the Staff Analysis. For more information, contact ABA's Jonathan Thessin.​
  • OCC Asks for Feedback on Modernizing CRA​ (9/4/18)
    The OCC on Aug. 28 issued a long-anticipated advance notice of proposed rulemaking seeking input on the best ways to modernize Community Reinvestment Act regulations. The ANPR asks for comment on several issues, including how to: 
    • Encourage more lending areas that need it most, including low- and moderate-income areas
    • Broaden and clarify the types of activities eligible for CRA consideration 
    • Update assessment area definitions to accommodate digital lending channels 
    • Measure bank CRA performance by a metric-based framework, “using quantitative benchmarks” that would assign numerical values to CRA activities 
    • Evaluate CRA activities more consistently 
    • Reduce the cost and burden of CRA evaluation 
ABA staff are reviewing the ANPR and will provide resources to facilitate banker comments, which will be due 75 days after publication in the Federal RegisterBankers can access more ABA resources on CRA reform at aba.com/ModernizingCRA. For more questions or to join ABA's open working group on CRA modernization, contact ABA's Krista Shonk.

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