Federal Bank Regulatory Agencies and FinCEN Improve Transparency of Risk-Focused BSA/AML Supervision

As a result of a working group established by the U.S. Department of the Treasury’s Office of Terrorism and Financial Intelligence, the federal bank regulatory agencies and the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (Fin…

As a result of a working group established by the U.S. Department of the Treasury's Office of Terrorism and Financial Intelligence, the federal bank regulatory agencies and the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) today issued a joint statement as part of continuing efforts to improve transparency into their risk-focused approach to Bank Secrecy Act (BSA)/anti-money laundering (AML) supervision.

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2019/nr-ia-2019-81.html

Sen. Feinstein voices questions, concerns about Facebook’s proposed digital currency

Sen. Dianne Feinstein (D-CA) expressed concerns over Facebook’s plan to create a new digital currency called Libra, which she said could create a “shadow financial system.” © Shutterstock Feinstein sent a letter last week to U.S. Treasury Secretary Mnuchin asking several key questions about Facebook’s plan before she signs off on it. “I have significant […]

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Sen. Dianne Feinstein (D-CA) expressed concerns over Facebook’s plan to create a new digital currency called Libra, which she said could create a “shadow financial system.”

© Shutterstock

Feinstein sent a letter last week to U.S. Treasury Secretary Mnuchin asking several key questions about Facebook’s plan before she signs off on it.

“I have significant concerns with Facebook’s proposed Libra digital currency and believe that numerous important questions must be answered before it is allowed to go into effect,” Feinstein wrote. “If enough people eventually use Libra, it could create a shadow financial system that would compete with the dollar and other national currencies. I do not believe this is in our national interest.”

Feinstein said it’s unclear why a private company should be able to create its own international currency that could undermine U.S. monetary policy.

“Currencies are managed by central banks that are accountable to elected officials for good reasons. The Federal Reserve has a legal obligation to work for the public interest; a for-profit corporation does not. If enough people eventually use Libra, it could create a shadow financial system that would compete with the dollar and other national currencies. I do not believe this is in our national interest,” Feinstein wrote.

She also questioned which agencies would have jurisdiction for a digital currency like Libra.

“The U.S. financial regulatory structure was not designed with digital currencies in mind. As you know, gaps in oversight of the financial system contributed to the global financial crisis just over a decade ago. We must understand clearly how any digital currencies will be regulated and overseen before they begin operation,” she wrote.

Further, there are national security and law enforcement concerns as digital currencies create opportunities for people who finance terrorism, launder money, and engage in criminal activities. Feinstein urged Mnuchin to work with U.S. regulators to address these and other questions and concerns.

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Read more / Original news source: https://financialregnews.com/sen-feinstein-voices-questions-concerns-about-facebooks-proposed-digital-currency/

Rep. Underwood supports overturning SALT guidelines

Rep. Lauren Underwood (D-IL) joined a bipartisan group of lawmakers seeking to overturn Treasury Department regulations seeking to restrict state and local taxes (SALT) deductibility guidelines. © Shutterstock Last month, the Treasury Department issued final regulations barring municipalities across the country from establishing trusts accepting payments from taxpayers to satisfy state and local tax liabilities. […]

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Rep. Lauren Underwood (D-IL) joined a bipartisan group of lawmakers seeking to overturn Treasury Department regulations seeking to restrict state and local taxes (SALT) deductibility guidelines.

© Shutterstock

Last month, the Treasury Department issued final regulations barring municipalities across the country from establishing trusts accepting payments from taxpayers to satisfy state and local tax liabilities.

“Middle-class families in the 14th District of Illinois are being double-taxed due to changes in the state and local tax deduction from the Republican tax law, all so the one percent and big corporations can get a tax break they don’t need,” Underwood said. “I’m proud to work with my colleagues in the House and Senate to ensure middle-class families aren’t disincentivized from investing in their communities because they now owe a higher federal tax bill.”

Underwood recently introduced a bill to reverse a tax increase on middle-class families created by the introduction of a $10,000 cap SALT in the Tax Cuts and Jobs Act of 2017. The measure would help middle-class families increase the current cap on SALT deductions from $10,000 to $15,000 for individual filers, eliminate the law’s marriage penalty by allowing joint filers to deduct up to $30,000 and adjust the cap for inflation so the value of the deduction does not decrease over time.

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Read more / Original news source: https://financialregnews.com/rep-underwood-supports-overturning-salt-guidelines/

CFPB, FTC and States Announce Settlement with Equifax Over 2017 Data Breach

The Consumer Financial Protection Bureau (Bureau), the Federal Trade Commission (FTC), and 48 states, the District of Columbia and Puerto Rico announced a global settlement today with Equifax that would provide up to $700 million in monetary relief and…

The Consumer Financial Protection Bureau (Bureau), the Federal Trade Commission (FTC), and 48 states, the District of Columbia and Puerto Rico announced a global settlement today with Equifax that would provide up to $700 million in monetary relief and penalties.

Read more / Original news source: https://www.consumerfinance.gov/about-us/newsroom/cfpb-ftc-states-announce-settlement-with-equifax-over-2017-data-breach/

Statement by Kathy Kraninger at CFPB/FTC Equifax Settlement Press Conference

Thank you for joining us. Today’s global settlement is the result of a strong partnership between the Bureau, the Federal Trade Commission, and the states. 

Thank you for joining us. Today’s global settlement is the result of a strong partnership between the Bureau, the Federal Trade Commission, and the states. 

Read more / Original news source: https://www.consumerfinance.gov/about-us/newsroom/cfpb-ftc-settlement-equifax-press-conference-statement-kathy-kraninger/

SIFMA, Financial Services Forum suggest changes to Fed rule on banks

The Securities Industry and Financial Markets Association (SIFMA) and the Financial Services Forum (FFS) weighed in on a proposal by the Federal Reserve Board to alter the rules about the control of a bank.© Shutterstock The proposal says that if a company has control over a bank, the company generally becomes subject to the board’s […]

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The Securities Industry and Financial Markets Association (SIFMA) and the Financial Services Forum (FFS) weighed in on a proposal by the Federal Reserve Board to alter the rules about the control of a bank.

© Shutterstock

The proposal says that if a company has control over a bank, the company generally becomes subject to the board’s rules and regulations. Further, the proposal would establish a comprehensive regulatory framework for control determinations and request comment on the framework.

In a letter to the Federal Reserve Board, SIFMA and FFS detailed how the proposal could be improved to ensure banks remain competitive and can meet their customers’ needs.

“The FRB should adjust the proposal to facilitate investments in emerging companies and technologies so that U.S. financial markets can remain at the forefront of global innovation in financial services,” the letter stated. “The priority issues we have addressed in this respect — adding flexibility regarding business relationships, allowing typical minority protective rights, and clarifying the treatment of equity — would ensure that banking organizations are able to partner with promising fintech firms and other emerging companies and adapt to evolving market conditions. In addition, the proposal should be adjusted to facilitate customer-driven capital markets and asset management transactions and businesses.”

Specifically, SIFMA and FFS officials say the proposal should be revised to facilitate investments in emerging companies and technologies. In addition, they say the rule changes should facilitate customer-driven capital markets and asset management transactions and businesses.

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Read more / Original news source: https://financialregnews.com/sifma-financial-services-forum-suggest-changes-to-fed-rule-on-banks/

House committee advances consumer, investor protection bills

The House Committee on Financial Services recently conducted a markup of eight bills legislators said would benefit consumers and investors disaster relief funding programs.© Shutterstock “I am pleased to say several of the bills have bipartisan support,” Committee Chairwoman Maxine Waters (D-CA) said. “I am also proud to say that so far this Congress we […]

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The House Committee on Financial Services recently conducted a markup of eight bills legislators said would benefit consumers and investors disaster relief funding programs.

© Shutterstock

“I am pleased to say several of the bills have bipartisan support,” Committee Chairwoman Maxine Waters (D-CA) said. “I am also proud to say that so far this Congress we have passed 38 bills out of this Committee and passed 24 bills off the House floor. These bills benefit consumers, investors, and small businesses and protect vulnerable families.”

Measures advanced by the Committee include the Student Borrower Credit Improvement Act, which is a bill aiding private student loan borrowers in removing conflicting information for certain defaulted or delinquent loans when they demonstrate a history of timely repayment. The Climate Risk Disclosure Act of 2019 requires companies to annually disclose information relating to the financial and business risks associated with climate change. The Outsourcing Accountability Act of 2019 requires public companies to annually disclose the number of employees employed in each state and foreign country, as well as the percentage change from the previous year. The PCAOB Whistleblower Protection Act of 2019 would establish a whistleblower program at the Public Company Accounting Oversight Board (PCAOB) similar to the whistleblower program at the Securities and Exchange Commission.

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Read more / Original news source: https://financialregnews.com/house-committee-advances-consumer-investor-protection-bills/

OCC Enforcement Actions and Terminations

The Office of the Comptroller of the Currency (OCC) today released new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations.

The Office of the Comptroller of the Currency (OCC) today released new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations.

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2019/nr-occ-2019-80.html

OCC Enforcement Actions and Terminations

The Office of the Comptroller of the Currency (OCC) today released new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations.

The Office of the Comptroller of the Currency (OCC) today released new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations.

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2019/nr-occ-2019-80.html?utm_source=RSS_feed&utm_medium=RSS

FDIC approves new rules related to failed banks

The Federal Deposit Insurance Corporation (FDIC) board approved new rules designed to simplify the process for making insurance determinations when a bank is placed into receivership. © Shutterstock “Timely access to insured deposits is critical to maintaining public confidence in the banking system and the FDIC’s ability to resolve these institutions,” FDIC Chairman Jelena McWilliams […]

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The Federal Deposit Insurance Corporation (FDIC) board approved new rules designed to simplify the process for making insurance determinations when a bank is placed into receivership.

© Shutterstock

“Timely access to insured deposits is critical to maintaining public confidence in the banking system and the FDIC’s ability to resolve these institutions,” FDIC Chairman Jelena McWilliams said. “Under the final rule, the FDIC can provide depositors at large failed banks the same rapid access to their insured funds as it does in smaller resolutions.”

The amendments establish recordkeeping requirements to facilitate rapid payment of insured deposits to customers if a bank were to fail. They apply to the 32 FDIC-insured institutions that have more than two million deposit accounts.

The FDIC board also amended its rules and regulations to expand the types of evidence it would consider when determining whether joint accounts qualify for increased deposit insurance coverage. This impacts all banks, regardless of size. The FDIC will continue to look to signature cards when determining deposit insurance coverage on joint accounts, however, it may now also rely on other information contained in a bank’s deposit account records that establishes co-ownership of a joint account. This change does not expand or contract deposit insurance coverage for joint accounts, nor does it place any added burden on depositors or FDIC-insured institutions.

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Read more / Original news source: https://financialregnews.com/fdic-approves-new-rules-related-to-failed-banks/