April 8, 2015 12:44 pm

By: Cody Roberts

Here at ABS, we update our CompliancePro software three to four times per year allowing us to deliver the most current compliance monitoring information our clients deserve. Since we’re here for your success and support, we thought you’d like a sneak peak at our next release, scheduled for April 2015, to keep you up-to-date on the latest industry news.

The following topics highlight what we will address in the announcement. Please note that other topics may be added but have not yet been finalized. Topics will include:

Amendment to the Annual Privacy Notice Requirement under the Gramm-Leach-Bliley Act (Regulation P)

The Bureau of Consumer Financial Protection amended Regulation P, which among other requirements calls for financial institutions to provide an annual disclosure of their privacy policies to their customers. The amendment established an alternative delivery method for this annual disclosure, which financial institutions will be able to use under certain circumstances.

NCUA S.A.F.E. Act Regulation Republished

The NCUA Board (Board) made a number of technical amendments to NCUA’s regulations based on issues identified by staff and through NCUA’s rolling, three-year regulatory review process. In addition, the Board made a number of nomenclature changes to NCUA’s regulations to reflect changes to their office structure, including the transfer of duties and the creation of the new Office of National Examinations and Supervision (ONES). Finally, under title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), rulemaking authority for a number of consumer financial protection laws was transferred from various federal regulatory agencies, including NCUA, to the Consumer Financial Protection Bureau (CFPB). As a result, the Board updated certain cross citations within its regulations, rescinding NCUA’s rules governing the ‘‘Privacy of Consumer Financial Information’’ under the Gramm-Leach-Bliley Act and the “Registration of Residential Mortgage Loan Originators’’ under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, which were transferred to the CFPB.

Amendments to the 2013 Mortgage Rules Under the Truth in Lending Act (Regulation Z)

The Bureau of Consumer Financial Protection (Bureau) amended certain mortgage rules issued in 2013. The final rule provided an alternative small servicer definition for nonprofit entities that meet certain requirements and amended the existing exemption from the ability-to-repay rule for nonprofit entities that meet certain requirements. The final rule also provided a cure mechanism for the points and fees limit applicable to qualified mortgages.

Financial Regulators Release 2014 Bank Secrecy Act/Anti-Money Laundering Examination Manual

The Federal Financial Institutions Examination Council (FFIEC) released the 2014 Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual. The revised manual provides current guidance on risk-based policies, procedures, and processes for banking organizations to comply with the BSA and safeguard operations from money laundering and terrorist financing.

The 2014 version further clarified supervisory expectations and regulatory changes from the last update to the manual in 2010. The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, and State Liaison Committee (Agencies) revised the manual in collaboration with the Financial Crimes Enforcement Network (FinCEN), the administrator of the BSA, and the Office of Foreign Assets Control (OFAC). FinCEN and OFAC collaborated on the revisions made to sections that address compliance with the regulations and sanctions programs that both administer and enforce.

Revisions were made throughout the manual as well.

Significant updates included:

  1. Suspicious Activity Reporting (SAR) – Incorporated new SAR E-Filing requirements, guidance on the extension of SAR filing for continuing activity, clarification of prohibitions on disclosing a SAR and guidance on sharing SARs with affiliates
  1. Currency Transaction Reporting (CTR) – Revised to incorporate new CTR E-Filing requirements and new guidance issued by FinCEN since 2010 pertaining to currency transaction aggregation for businesses and exemptions
  1. Foreign Correspondent Account Recordkeeping – Included regulations relating to the Comprehensive Iran Sanctions, Accountability and Divestment Act

Extension of SCRA Foreclosure Relief Enacted

Congress extended the sunset date to December 31, 2015, for the temporary substitution of “one year” for “90 days” in the foreclosure protections under the Servicemembers Civil Relief Act (SCRA) sections 303(b) and (c) (50 App. U.S.C. 533).

FDIC Consolidates Flood Regulations

The Federal Deposit Insurance Corporation (FDIC) adopted a final rule to rescind, amend and remove regulations entitled, “Loans in Areas Having Flood Hazards.” This rule integrated the flood insurance regulations for state nonmember banks and savings associations in accordance with the requirements of the Dodd-Frank Act. The integration of these regulations was originally proposed as part of an interagency joint notice of proposed rulemaking issued in October 2013 pursuant to the Biggert-Waters Flood Insurance Reform Act of 2012. The FDIC decided to integrate the flood insurance regulations by means of an individual final rule.

Stay tuned for the full release coming your way soon!