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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.

Bank members-only content =

July 2018 | August 2018

August News

  • ​FFIEC Releases New CRA Geocoding System and Updated Census Data Products (8/17/18)
    The Federal Financial Institutions Examination Council (FFIEC) announced the availability of the 2018 Geocoding System with updated 2018 Census demographic data. The FFIEC Geocoding/Mapping System helps financial institutions meet their legal requirements for reporting HMDA and CRA data. FFIEC also released the 2018 Census Data Products which includes the FFIEC Census Windows Application and FFIEC Online Census Data System (formerly FFIEC Census Reports). Visit ABA's CRA  and HMDA  pages for more information.
  • FCC Seeks Comment on Blocking of Presumptively Illegal Calls (8/13/18)
    The Federal Communications Commission is seeking comment on how it might "further empower" companies that provide telephone service (Voice Service Providers) to block fraudulent and other illegal calls. The FCC's request comes after it authorized (but did not require) Voice Service Providers last November to block calls from phone numbers that are invalid or unassigned to a specific user. In its ongoing effort to combat illegal calls, the FCC now seeks comment on "additional criteria" by which Voice Service Providers may block calls that are "highly likely to be illegal." Contact Jonathan Thessin for more information.
  • Bureau Final Rule Codifies Legal Exemption for Annual Privacy Notice Requirements (8/13/18)
    The Bureau of Consumer Financial Protection on Friday issued its long-awaited final rule amending Regulation P to incorporate a new legal exception to the requirement for banks to send annual privacy notices to their customers. Under a law passed by Congress in 2015, banks are no longer required to send an annual privacy notice if they have not changed their policies and practices about how they share customer information since the previous notice was sent, provided they only share nonpublic personal information with third parties as permitted by one of the statutory or regulatory exceptions.  For more information, contact ABA's Rob Rowe​.
  • ABA Staff Analysis: FEMA's Notice of Proposed Rulemaking on Flood Insurance ​ (8/10/18)
    The Federal Emergency Management Agency issued a Notice of Proposed Rulemaking to modify its regulations which implement statutory provisions of the National Flood Insurance Program (NFIP). The changes are largely related to the operation of the NFIP and the Standard Flood Insurance Policy, and for the most part, do not appear to have a substantial, direct impact on lender operations with respect to flood insurance. However, bankers should be aware of two specific proposed changes: clarifications regarding Residential Condominium Building Association Policies, and exclusions for floods in progress. ​
  • Bureau Announces File Format Verification Tool for HMDA Data Collection​ (8/8/18)
    The Bureau of Consumer Financial Protection announced the File Format Verification Tool (FFVT) for HMDA data collected in 2018 and submitted in 2019. The FFVT is a resource for testing whether the HMDA file meets certain formatting requirements specified in the HMDA Filing Instructions Guide. FFVT allows HMDA filers to test the formatting of their files without logging in. No Federal agency will receive or be able to view the files. Questions regarding HMDA reporting should be sent to
  • FinCEN Extends Temporary Relief for CD Rollovers and Loan Renewals (8/8/18)
    FinCEN has extended the temporary relief that was granted for CD rollovers and loan renewals by an additional 30 days. The new expiration date will be Sept. 8, 2018. While FinCEN is putting the finishing touches on a more permanent solution, FinCEN created a Customer Due Diligence (CDD)-specific page that pulls together all of the various documents on the CDD Rule, including this extension to help banks with their compliance efforts. See ABA's BSA/AML page​ for more resources on the CDD rule.
  • Bureau Announces New Global Initiative; Requests Comments (8/7/18)
    The Bureau of Consumer Financial Protection (BCFP) announced a new global initiative, the Global Financial Innovation Network (GFIN), to facilitate innovation and promote regulatory best practices in consumer financial services, and help innovative firms navigate between countries as they look to scale new ideas. The Bureau, working in collaboration with 11 financial regulators, released a Consultation Document proposing GFIN's main functions. The Bureau and other regulators are requesting comments on the mission statement for GFIN, its proposed functions, and where it should prioritize activity. Interested parties can provide feedback to the Bureau's new Office of Innovation by Oct. 14.
  • ABA Staff Analysis: W3C Releases Updated Website Accessibility Guidelines  (8/6/18)
    In a Staff Analysis, ABA notified member banks that the World Wide Web Consortium (W3C) has updated the Web Content Accessibility Guidelines (WCAG) 2.0, by publishing WCAG 2.1. WCAG 2.1 adds 17 new success criteria to make content more accessible to a wider range of people with disabilities, including new accommodations for individuals with blindness and low vision, deafness and hearing loss, limited movement, speech disabilities, photosensitivity, and learning disabilities and cognitive limitations. The new guidelines also address accessibility of web content on desktops, laptops, tablets, and significantly, mobile devices. Contact ABA's Teshale Smith​ for more information.
  • ABA Releases Staff Analysis of Treasury Fintech Report​  (8/2/18)
    ABA released a members-only staff analysis of the Treasury report. The analysis covers eight key takeaways from the report: the OCC's fintech charter, customer data access, the regulatory sandbox, third-party risk management, the "valid-when-made" doctrine, small-dollar loans, data security standards and the Telephone Consumer Protection Act. View more ABA resources at
  • Interest Magazine Highlights OIG's Work against Fraud, Waste, and Abuse Related to Board and Bureau's Programs​ (8/2/18)
    The Office of Inspector General's (OIG) second issue of Interest Magazine highlights the OIG's investigative work regarding operations of the Federal Reserve Board and the Bureau of Consumer Financial Protection. From October 2016 through September 2017, the OIG has issued 11 indictments, ordered $16.4 million in criminal fines, restitution, and special assessments, and $863 million in civil judgments. Its investigative accomplishments include former bank officials sentenced for conspiracy and bank fraud involving over $1 billion, and a former Board employee who installed unauthorized software to earn bitcoins.
  • ABA Issues Checklist, FAQ for GDPR Risk Management (8/1/18)
    As banks continue to assess their risks related to the European Union's General Data Protection Regulation, which came into effect on May 25, ABA has released a new round of members-only resources to help. Following up on a suite of free member resources provided earlier in the year, ABA unveiled a GDPR risk management checklist and a 32-page FAQ document addressing the most common questions received from community, midsize and regional banks. For more information, contact ABA's Denyette DePierro.
  • Senate Passes ABA-Backed Flood Insurance Extension (8/1/18)
    With hours to spare, the Senate on July 31 passed an ABA-supported measure extending the National Flood Insurance Program through Nov. 30, providing certainty for lenders and borrowers during this year’s hurricane season. The 86-to-12 vote sent the extension to President Trump ahead of the program's scheduled expiration at midnight yesterday. ABA President and CEO Rob Nichols welcomed the Senate's action. "Avoiding a lapse in program authority will protect borrowers from closing delays, additional costs and other complications," he said. ABA will continue to work with lawmakers to secure a long-term NFIP reauthorization and reforms.

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July News

  • ABA Updates Enforcement Action Database (7/30/18)
    ABA recently updated the enforcement database to include nine enforcement actions. The FDIC assessed a civil money penalty against one bank for flood violations. The OCC issued three cease and desist orders for BSA/AML violations against one bank. The Federal Reserve issued a consent order for BSA/AML violations. The Federal Reserve also assessed a $4.75 million restitution fine against a bank for UDAP and CMS violations. The Bureau issued two enforcement actions against non-banks. The Bureau assessed a $500,000 civil monetary penalty against a company for FDCPA violations. The Bureau also assessed a $500,000 restitution fine and $1,5222,298 settlement fine against a company for TILA violations. ABA members must login to view the database. Contact Teshale Smith for questions on the database.
  • Senators Urge FCC to Issue New TCPA Rules (7/27/18)
    A group of seven Senators who serve on the Senate Commerce Committee — including Sen. John Thune (R-S.D.), the committee's chairman — sent a letter to Federal Communications Commission Chairman Ajit Pai to urge the FCC to issue new rules to ensure that customers can receive important communications from their banks and other businesses. The letter was submitted as the FCC considers issuing new Telephone Consumer Protection Act rules in light of a federal appellate court's decision in March to strike down two key aspects of the FCC's prior rules. See ABA's TCPA page  for more information. Contact Jonathan Thessin with questions.
  • Fed Launches Consumer Compliance Supervision Bulletin (7/26/18)
    The Federal Reserve has launched a new Consumer Compliance Supervision Bulletin that will share information about examiners' observations and other developments related to consumer protection. The bulletin will also provide practical steps that banks can consider when addressing consumer compliance risk. The first issue examines the issue of redlining, exploring the key risk factors the Federal Reserve considers in its redlining review and some practical steps for mitigating risk.
  • House Passes ABA-Backed Flood Insurance Extension (7/26/18)
    The House passed an ABA-supported measure extending the National Flood Insurance Program through Nov. 30, providing certainty for lenders and borrowers during this year’s hurricane season. Following the 366-to-52 vote, the Senate must now pass the measure to ensure authorization for the NFIP does not expire as scheduled on July 31. ABA President and CEO Rob Nichols welcomed the House's action. 
  • State Attorneys General Letter to Sessions on Web Accessibility Standards for ADA (7/25/18)
    In a letter to Attorney General Jeff Sessions, the state Attorneys General request that the Department of Justice clarify regulations pertaining to the web accessibility standards of the Americans with Disabilities Act. "The ADA does not provide clear guidance regarding web accessibility, yet businesses are attempting to provide high levels of website access for customers with disabilities," the state AGs write. The state AGs request that "DOJ issue a proposed rule to provide exact standards for web accessibility, and provide any guidance in the interim." For questions on ADA contact ABA's Virginia O'Neill.
  • DOD Reports Technical Issue with MLA Database (7/25/18)
    The Department of Defense is currently working to resolve a technical issue with its Military Lending Act database after bankers reported receiving rejection messages when attempting to verify a servicemember’s status. DOD confirmed that an expired commercial security certificate on site was the cause of the problem. While some users were unaffected, others reported being unable to access the database at all. Bankers experiencing difficulties with the database should contact the Defense Manpower Data Center technical assistance number at 800-477-8227.
  • FHFA Halts Credit Score Initiative (7/24/18)
    As expected, the Federal Housing Finance Agency announced that it will not issue a decision this year about updating the credit score models required by Fannie Mae and Freddie Mac. Instead, the agency will shift its focus toward implementing a section of S. 2155 — the new regulatory reform law — that requires it to define through rulemaking the criteria the GSEs will use to validate credit scores. ABA continues to advocate for models that are empirically derived, accurately predictive and well-tested prior to implementation, and will engage with FHFA as it begins the rulemaking process. For more information, contact ABA's Joe Pigg.
  • Kraninger to Focus on Transparency, Accountability as Head of Bureau if Confirmed (7/20/18)
    In testimony before the Senate Banking Committee, Bureau of Consumer Financial Protection director nominee Kathy Kraninger outlined her key priorities for leading the agency if confirmed, pledging to ensure that the Bureau functions in a fair and transparent manner and is accountable to taxpayers. Kraninger — who is currently an associate director at the Office of Management and Budget — said she will focus on "running the agency as Congress established;" she would use the Bureau’s rulemaking process effectively; and, work closely with other regulatory agencies and states on supervision and enforcement.
  • How to Prepare for a Lapse in the NFIP (7/20/18)
    With the National Flood Insurance Program set to lapse on July 31 unless Congress intervenes, the latest exclusive online feature from the ABA Banking Journal examines what bankers should do to prepare themselves and their customers. ABA Senior Counsel Diana Banks walks bankers through what to do before, during and after a lapse occurs. For more on Flood Insurance, see ABA's page .
  • Bureau Announces Director of New Office of Innovation (7/18/18)
    The Bureau of Consumer Financial Protection announced that Paul Watkins will lead the Bureau's new Office of Innovation. Watkins was previously with the Arizona Office of the Attorney General, where he was in charge of the office's fintech initiatives. Bureau Acting Director Mick Mulvaney created the Office to focus on encouraging consumer-friendly innovation. The new office will focus on creating policies to facilitate innovation, engaging with entrepreneurs and regulators, and reviewing outdated or unnecessary regulations.
  • ABA Recommends Changes to Bureau's Complaint Handling Process (7/16/18)
    In a comment letter to the Bureau today — the twelfth and final one that the association will submit as part of the Bureau's ongoing feedback initiative — ABA urged the Bureau to encourage consumers to contact their bank directly to express a concern with the bank's product or service prior to filing a formal complaint with the Bureau. ABA also asserted that it is the responsibility of the Bureau to respond to consumer inquiries, as part of the Bureau's statutory mission to promote consumer financial education. Contact ABA's Jonathan Thessin with questions.
  • OIG Updates Work Plan (7/16/18)
    The Office of Inspector General (OIG) on July 16 announced its updated Work Plan (current as of July 1) publishing initiated, in development, and planned projects the OIG conducted to assist the Bureau of Consumer Financial Protection and the Board. Since its last update, the OIG has completed the following tasks: audit of the Bureau's compliance with the Improper Payments Information Act of 2002, as Amended (IPIA); audit of the Bureau's GMMB Inc. contract, which assessed the Bureau's compliance with the Federal Acquisition Regulation, the Bureau's procurement policy, and any other relevant laws and regulations; and, the security control review of the Bureau's Mosaic System. See the list of completed tasks.
  • Bankers Call for Revisions to TRID for Single-Family Construction Loans (7/13/18)
    In a letter to the Bureau of Consumer Financial Protection, more than 100 bankers from across the country called on the Bureau to revise the TILA-RESPA Integrated Disclosure rule to exempt single-family residential construction loans from onerous disclosure requirements that have created confusion for consumers and caused many banks to exit the market. In addition to calling for revisions to TRID, bankers urged the Bureau to reduce liability enforcement until such revisions can be crafted and implemented. They also asked the Bureau to consider adopting a more straightforward disclosure process for single-family construction loans that would allow banks to provide borrowers with information about the loan amount, interest amount, term of loan and funding and disbursement schedule in any format they choose. Contact Rod Alba with questions.
  • Trade Associations Urge Congress to Take Action on Flood Reauthorization (7/11/18)
    A group of 22 trade associations wrote to congressional leaders urging them to take swift action to extend the National Flood Insurance Program to avoid a lapse in the program, which is set to expire on July 31. Congress has previously approved short-term stop-gap extensions for the program as the debate continues over its reform, and the NFIP lapsed briefly in 2017 and 2018. The groups raised concerns that the program’s lapse during the height of hurricane season could leave millions of Americans at risk and could slow the ongoing recovery in areas stricken by hurricanes in 2017. For more information, contact ABA's Joe Pigg.
  • Bureau Names New Acting Deputy Director (7/11/18)
    The Consumer Financial Protection Bureau on Monday named Brian Johnson as acting deputy director, shortly after Leandra English announced her departure. Johnson is currently principal policy director at the Bureau and as such is Acting Director Mick Mulvaney's top aide. Before joining the Bureau, Johnson was senior counsel to the House Financial Services Committee.
  • Agencies Issue Statements on Implementing S. 2155’s HMDA Reporting Exemptions (7/5/18)
    The Bureau, FDIC and OCC each issued statements acknowledging the partial exemptions granted under S. 2155 — the new regulatory reform law — for certain Home Mortgage Disclosure Act data reporting requirements for some insured depository institutions. The law provides a partial exemption to banks and credit unions for closed-end mortgage loans if the institution originated fewer than 500 closed-end mortgage loans in each of the two preceding calendar years, and for open-end lines of credit if the institution originated fewer than 500 open-end lines of credit in each of the two preceding calendar years.
  • ABA Comments on the Bureau's RFI Regarding Financial Education (7/3/18)
    In a comment letter to the Bureau of Consumer Financial Protection — the eleventh of twelve that the association will submit as part of the Bureau's ongoing feedback initiative — ABA urged the Bureau to embrace its statutory mandate to promote financial education, recommending that the Bureau increase its collaboration with the private sector and its amplification of existing financial literacy efforts. The association also encouraged the Bureau to offer education on topics that have not been well-covered to date, including consumer use and navigation of arbitration proceedings, PLUS student loans, financial aggregation services, and avoiding online schemes that steal personal information. In addition, we also emphasized the need for research on financial education, financial stability, and wealth building. Contact Diana Banks with questions.
  • ABA Comments on Bureau's RFI Regarding Bureau Guidance and Implementation Support (7/2/18)
    ABA filed comments on the Bureau of Consumer Financial Protection's Request for Information Regarding Bureau Guidance and Implementation Support — the tenth of 12 that the association will submit in response to the Bureau's ongoing feedback initiative. In the letter, ABA notes that guidance that is appropriately developed, disseminated, and applied by agency staff plays a key role in assisting banks and other supervised institutions in improving and maintaining compliance with laws and supervisory standards, including those related to consumer compliance. Contact Rob Rowe with questions.
  • ABA Seeks Collaborative Approach to Promote Faster Payments Adoption (7/2/18)
    ABA commented on a proposal from the Governance Framework Formation Team, a group of private-sector representatives working in collaboration with the Federal Reserve. ABA welcomed the proposal's focus on "private-sector approaches to solving problems and removing barriers to achieving ubiquity." The formation team’s proposal envisions a Faster Payments Council, a private-sector body that would be independent of the Fed. Ideally, ABA said, this council would foster greater interaction among faster payments solutions, a high-quality customer experience and more efficient cross-border transactions. 
  • FATF Statement on North Korea (7/2/18)
    The Financial Action Task Force (FATF), in a recent public statement, continued to call on the international community to apply counter-measures against the Democratic People's Republic of Korea (DPRK) to protect the international financial system from money laundering and financing of terrorism risks emanating from the country. "In addition to enhanced scrutiny, the FATF further calls on its members and urges all jurisdictions to apply effective counter-measures, and targeted financial sanctions in accordance with applicable United Nations Security Council Resolutions, to protect their financial sectors from money laundering, financing of terrorism and WMD proliferation financing (ML/FT/PF) risks emanating from the DPRK," the statement said.
  • California Enacts Controversial Data Privacy Law (7/2/18)
    California Gov. Jerry Brown signed a bill creating new data privacy requirements for businesses that handle consumer data in the state. For financial companies subject to the privacy provisions of the Gramm-Leach-Bliley Act, the law provides a narrow exception for consumer data collected, processed, sold or disclosed pursuant to GLBA, if the requirements of the state law are in conflict with GLBA. The California Bankers Association and other business groups will continue urging California lawmakers to amend the law as the compliance date draws closer. ABA is closely following the process. For more information, contact ABA's Sabrina Bergen.
  • ABA Updates Enforcement Action Database (7/2/18)
    ABA recently updated the enforcement database to include four new enforcement actions. Two of the enforcement actions concerned BSA/AML violations and resulted in civil monetary penalties of $12.5 million. The other two enforcement actions were issued by the Bureau for TILA and FCRA violations. Contact Teshale Smith or Rick Freer with questions.
  • Senate Banking Committee to Hold CFPB Nomination Hearing July 19 (7/2/18)
    In related news, the Senate Banking Committee has said it will hold a nomination hearing on July 19 for Kathy Kraninger, President Trump’s nominee to be the next director of the CFPB. Currently, Kraninger is an associate director at the Office of Management and Budget (OMB) responsible for financial regulatory agency budgets, and previously served as Senate staff on Capitol Hill and at the Department of Homeland Security.

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