Compliance Monthly is intended to keep you informed of regulatory changes in advance of their effective date so your institution can have the necessary policies, procedures and processes in place to be compliant at the time of enactment.
February 2020 Compliance Newsletter
CFPB’s Statement of Policy Regarding Prohibition on Abusive Acts of Practices
On January 27, 2020, the CFPB issued a Policy Statement to provide more clarity about how it intends to approach its use of the “abusiveness” standard in its supervision and enforcement matters going forward.
The Policy Statement is intended to provide information regarding the CFPB’s general plans to exercise its discretion and does not impose any legal requirements on external parties, nor does it create or confer any substantive rights on external parties that could be enforceable in any administrative or civil proceeding. In addition, the Policy Statement does not impose any new or revise any existing record-keeping, reporting, or disclosure requirements on covered entities.Download
January 2020 Compliance Newsletter
Nacha Third Party Sender Registration
This rule requires Originating Depository Financial Institutions (ODFIs) to identify and register their Third-Party Sender customers. The registration process promotes consistent customer due diligence among all ODFIs, and serves as a tool to support Nacha’s continuing efforts to maintain ACH Network quality. This requirement became effective on March 1, 2018.
As a result of recent audit’s, Accume Partner’s has become aware of an ongoing issue concerning Nacha requirements. Financial institutions have been receiving a notice regarding failure to register their Third Party Sender status as well as re-registering their direct access status required since March 1, 2018.
Nacha considers this a Class 2 Rules violation and subject to fines up to $100,000 at the discretion of the Nacha panel referenced notice received. Per contacts at Nacha, Accume has been informed that Nacha is aggressively pursuing financial institutions that haven’t registered as required. Registration (confirming or denying) is required for ALL originators.Download
December 2019 Compliance Newsletter
Providing Financial Services to Customers Engaged in Hemp-Related Businesses
On December 3, 2019, he Board of Governors of the FRB, the FDIC, the FinCEN, and the OCC in consultation with the Conference of State Bank Supervisors, issued the statement to provide clarity regarding the legal status of commercial growth and production of hemp and relevant requirements for banks under the Bank Secrecy Act (BSA) and its implementing regulations.Download
November 2019 Compliance Newsletter
Initial Preparations for 2020!
The new year will continue to present challenges for financial institutions with balancing expectations and resources. Our accounting, audit, compliance and IT professionals work with a wide range of financial institutions and interact regularly with the regulatory agencies. These relationships give us a broad perspective regarding industry best practices and regulatory expectation and put us in a unique position to assist our clients in navigating current challenges and prepare those the future may present. Here are some of the topics we want to put on your radar as you start to plan for 2020Download
October 2019 Compliance Newsletter
The joint Agencies have issued an amendment to the Appraisal Rule that increases the threshold for residential real estate transactions requiring an appraisal from $250,000 to $400,000. For transactions exempted by the $400,000 threshold, the Appraisal Rule requires an evaluation. The Rule also incorporates the appraisal exemption for rural residential properties provided by the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRCCPA) and requires evaluations for these exempt transactions. In addition, the Appraisal Rule requires appraisals for federally related transactions to be subject to appropriate review for compliance with the Uniform Standards of Professional Appraisal Practice (USPAP).Download
September 2019 Compliance Newsletter
OFAC Interim Rule Guidance
On June 21, 2019, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issued an interim final rule to amend the Reporting, Procedures and Penalties Regulations.Download
August 2019 Compliance Newsletter
Availability of Funds and Regulation CC Final Rule
Effective Date: July 1, 2020
In June 2019, the FRB and CFPB finalized amendments to Regulation CC implementing a statutory adjustment to adjust the dollar amounts under the Expedited Funds Availability (EFA) Act for inflation. The final rule applies to all depository institutions regardless of their size.Download
July 2019 Compliance Newsletter
Interagency Private Flood Insurance Rule
The Interagency Private Flood Insurance rules requiring that lenders must accept private flood insurance if the policy meets certain requirements were effective July 1, 2019. The rule addresses:
- Mandatory Acceptance Requirements
- The Compliance Aid
- Discretionary Acceptance
- Mutual Aid Society Plans
May Monthly Compliance Newsletter
FFIEC Issues 2019 Guide to HMDA Reporting
The FFIEC issued its 2019 A Guide to HMDA Reporting: Getting it Right! This edition is effective as of January 1, 2019, for HMDA submissions due March 1, 2020. The guide includes information regarding a HMDA reporter’s responsibilities and requirements, directions for assembling the necessary tools, and instructions for reporting HMDA data. The guide was developed by the member agencies of the FFIEC. The updated edition incorporates changes that the Economic Growth, Regulatory Relief, and Consumer Protection Act made to HMDA, as well as the CFPB’s related 2018 HMDA interpretive and procedural rule. Additionally, the guide continues to include appendices developed by the member agencies regarding compliance materials useful for navigating HMDA requirements, such as the CFPB’s HMDA Small Entity Compliance Guide and various summary charts (regarding items like institutional coverage and transactional coverage).
April Compliance Newsletter
The Federal Trade Commission (FTC) has proposed amendments to its 2003 Safeguards Rule and 2000 Privacy Rule, applicable to financial institutions under the Gramm Leach Bliley Act (GLBA). The proposed changes are intended to keep pace with technological developments. The Safeguards Rule requires a financial institution to develop, implement, and maintain a comprehensive information security program. The Privacy Rule requires a financial institution to inform customers about its information-sharing practices and allow customers to opt out of having their information shared with certain third-parties. Some of the proposed changes to the Safeguards Rule include:
- Encryption of all consumer data;
- Implementing access controls to prevent unauthorized users from accessing consumer information;
- Implementing multifactor authentication to access consumer data, and
- Requiring periodic reports submitted to the Board to ensure compliance.
The proposed amendments would require covered financial institutions to encrypt all customer data held or transmitted by the institution both in transit over external networks and at rest. The proposed amendments would also require the use of multi-factor authentication for any individual accessing customer information on the institution’s internal networks. Covered financial institutions would need to submit periodic reports to their Boards of Directors.Download
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