Financial Services Spotlight

May, June and July Developments

Posted by Roy Andersen on Aug 9, 2017 1:44:12 PM

With a straight face, President Trump has issued an executive order on June 20th that would expand Apprenticeship opportunities in the US in order to expand jobs. The CFTC has adopted some final rules on records administration and its whistleblower program. It has also introduced a new project to evaluate its system of rules to see where simplification is warranted. FinCEN is moving against a Chinese bank that helps North Korea.

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Topics: OFAC, CFTC, FDIC, FinCEN, Qualified Financial Contracts, NCUA, Consumer Financial Products

January 2017 Developments

Posted by Roy Andersen on Jan 31, 2017 12:00:00 PM

Overview

A Donald Trump effect was apparent with the January 26th Federal Register-- it was one of the shortest Federal Register volumes seen in some time—even the pre-holiday Registers sport more pages.  The CFPB published a rule requiring incentive programs for sales of consumer products be subject to extraordinary controls adapted to such sales campaigns.  These would be in addition to and perhaps duplicative of the requirements of primary federal regulators. 

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Topics: OFAC, CFPB, CFTC, Sudan Sanctions, Incentive Sales Programs, Loss Absorbing Capacity

July 2016 First Half Developments

Posted by Roy Andersen on Jul 18, 2016 12:00:00 PM

Overview

The CFPB has issued its regulations to implement one of the few legislative changes to ease the compliance burden on banks.  The privacy rules have produced one of the least helpful disclosure requirements on how banks treat your confidential information.  Most consumers received rafts of these confusing disclosures to no useful end, except to trip up banks at examination time.  These were so burdensome that Congress actually provided some relief.  The CFPB rule demonstrates how confusing and overlapping rules are since the bulk of the rule is to ease interactions with other disclosure rules that intersect with the privacy notices.  The CFPB also published a special report on the mortgage servicing business highlighting the compliance problems in that business and suggesting that a crackdown was coming.

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Topics: OFAC, CFPB, Penalty Calculations, Mortage Servicing, Regulation P

April 2016 Second Half Developments

Posted by Roy Andersen on May 5, 2016 12:00:00 PM

Overview

The President issued an order subjecting certain Libyan persons to asset blocking and travel restrictions due to the deteriorating conditions in Libya.  OFAC will most likely update its sanctions to reflect the President’s actions. 

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Topics: Libya, OFAC, CFPB, RESPA, NCUA, Mortgage Servicing, Regulation Z

March 2016 Second Half Developments

Posted by Roy Andersen on Apr 6, 2016 12:00:00 PM

Overview

The Fed published a proposed rule that would establish a credit limit for doing business with other large institutions.  In effect, this is a super lending limit for large banks.  It applies at a fairly low level of $50 billion in assets. This is a Dodd-Frank requirement and perhaps part of the rush of the Obama administration to put as many rules as possible over the finish line before a potential change of political will.  The former Federal Bank of the Middle East now known as FBME continues its fight against death sentence effect of the US government determining that a bank is of “primary money laundering concern.” The effect of such a determination can be seen in the Credexbank FinCEN notice whereby the bank was put out of business.   FBME is fighting against this determination and is at least having an independent party determine whether it is indeed engaged in money laundering activities such that it should be put out of business.

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Topics: OFAC, North Korea, Cuba, European Union, CFTC, ESMA, EMIR

March 2016 First Half Developments

Posted by Roy Andersen on Mar 16, 2016 12:00:00 PM

Overview

FinCEN published changes to the rules governing FBARs.  The change that may require more work is for those institutions that control more than 25 foreign accounts because more information will need to be reported with regarding to those accounts. The nuclear agreement with Iran resulted in dozens of changes to the SDN List and OFAC has published a comprehensive list of changes, most of businesses that are now authorized to engage in increased business activities.  Credit Unions continue to make inroads on banking activities and a new rule was adopted to liberalize commercial lending activities. Such lending is still an overall small percentage of credit union business but it is the fastest growing segment of credit union activity.

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Topics: OFAC, Ukraine, Iran, FBARs, Foreign Bank Accounts, Zimbabwe, Venezuela, Foreign Banking, Money laundering, FinCEN, Credit Union Commercial Loans, Terrorism Risk Insurance

February 2016 First Half Developments

Posted by Roy Andersen on Feb 16, 2016 12:00:00 PM

Overview

The BCFP published a Compliance Bulletin to remind banks that they must have reasonable written policies and procedures to insure that any consumer reporting data they pass on to consumer reporting agencies is accurate and complete.  This has been a requirement for some time, but the BCFP has notice an uptick in inaccurate date, particularly with regard to deposit account data.  Banks can expect increased focus on these procedures during the next consumer compliance examination.  After 7 years of review, the CFTC has determined that Korea has sufficient supervisory systems in place to permit certain Korean swaps entities to do business with U.S. persons.  OFAC is abandoning certain reporting requirements in connection with remittance transactions with Cuba.

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Topics: OFAC, Cuba, Currency Transaction, CFTC, BCFP, Korea, Credit Reporting, FDIC, Foreign Regulatory

About the Spotlight


The Financial Services Spotlight examines the regulatory and technology developments impacting banks, asset managers and other financial services providers—where challenges meet opportunities.

 

Meet the Authors


Roy C. Andersen, of counsel in Sullivan & Worcester's New York office, is a member of the Corporate Department. Mr. Andersen focuses on bank regulatory and compliance matters, including international banks and their branches and agencies in New York.

Joel Telpner, partner in the firm's New York office, is a seasoned advisor, strategist and problem solver. Mr. Telpner brings more than 30 years of legal experience in a career that includes time as an AmLaw 100 partner, the former U.S. general counsel of a global financial institution, and a venture capitalist. He is recognized for his ability to deftly manage complex financial transactions, especially those involving sophisticated structured finance and derivatives matters and has an extensive and unique combination of transactional and regulatory experience.

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