Here is a quick rundown on the latest news from various federal financial regulatory agencies.
The FDIC
On August 20, the Federal Deposit Insurance Corporation (FDIC) announced that it was modifying its Statement of Policy for Section 19 of the Federal Deposit Insurance Act, which is explained in its financial institution letter, FIL-42-2018.
The OCC
On August 17, the Office of the Comptroller of the Currency (OCC) published its Enforcement Actions and Terminations for August 2018. Most notable were three actions against TCF National Bank in regard to violations of the Federal Trade Commission Act (FTCA) in connection with its ATM and one-time debit cards. The Cease and Desist Order, the Civil Money Penalty for $3 million, and the Restitution Order of $25 million were all the result of alleged deceptive acts or practices in the bank’s overdraft protection Opt-in process.
The NCUA
On August 17, the National Credit Union Administration (NCUA) named 26-year agency veteran, Matthew J. Bilouris, as the Director of its Office of Consumer Financial Protection.
The CFPB
On August 10, the Consumer Financial Protection Bureau (CFPB) published its final rule amending the Gramm-Leach-Bliley Act, which provides an exemption from sending annual privacy notices as per Regulation P. In order to qualify for the exemption, financial institutions must meet the following two criteria:
- “Must not share nonpublic personal information about customers except as described in certain statutory exceptions.”
- “Must not have changed its policies or procedures with regard to disclosing nonpublic personal information from those that the institution described in the most recent privacy notice it sent.”
The Federal Reserve
On August 10, the Federal Reserve imposed an $8.6 million fine on Citigroup for alleged unsafe and unsound practices stemming from the “improper execution of residential mortgage-related documents” at one of its subsidiaries.
FinCEN
On August 8, the Financial Crimes Enforcement Network (FinCEN) extended its limited exception from beneficial owner requirements on legal entity customers for another 30 days. FinCEN initially instated the exception in May, just five days after the beneficial ownership rule went into effect on May 11. This relieved financial institutions from having to collect beneficial ownership information on certain financial products that automatically renew, such as certificates of deposit, that were opened prior to May 11.
That 90-day exception expired on August 9, but this latest move extends it to September 8.
Bank Risk and Compliance Writer 