Washington Report 360 | October 05, 2018

In this issue....

Key highlights

  • The CFTC released a white paper outlining recommendations and proposals to amend its current approach to the regulation of cross-border swaps.
  • Four federal regulators testified on their agency's efforts to implement the EGRRCPA, including requirements related to the new $250 billion SIFI threshold.
  • Along with FinCEN, federal banking and credit union regulators issued a statement on collaborative arrangements between community banks and credit unions to share BSA/AML resources for certain obligations.
  • The Federal Reserve sought comment on updates to the payments system to facilitate real-time interbank settlements of faster payments.

Financial services legislative and regulatory news

The CFTC released a white paper, which introduces recommendations and proposals on the regulation of cross-border swaps that, if adopted, would replace the CFTC's current approach and guidance.

CFTC Chair Christopher Giancarlo discussed the agency's enforcement efforts, highlighting a 25 percent increase in overall enforcement actions, an increase in large-scale matters, and a priority on individual accountability.

Leaders of the OCC, Federal Reserve, FDIC, and NCUA testified on their agency's efforts to implement the EGRRCPA; Federal Reserve testimony highlighted work on a regulatory framework for BHCs with assets of $100 billion to $250 billion considering multiple factors in addition to asset size and tailoring for BHCs with assets of more than $250 billion that are not G-SIBs.

California enacted three laws impacting banks and other lenders: Senate Bill 826 mandates women on corporate boards; Senate Bill No. 1235 imposes disclosure rules for business loans of $500,000 or less; and Assembly Bill No. 237 extends consumer protections in the state's small dollar pilot program from $2,500 to $7500.

Financial services policy news

Four federal regulators and FinCEN issued a statement explaining how community banks and credit unions can share Bank Secrecy Act and anti-money laundering resources to manage certain of these obligations.

The Federal Reserve requested comment on potential actions it could take to promote faster payments in the U.S. by facilitating real-time interbank settlement of faster payments.

The FDIC published a report on its Small Business Lending Survey; and requested comments on how it can maximize efficiency and minimize burden when communicating information about laws, rules, and related matters.

The OCC published updated guidelines and procedures regarding implementation of its Prompt Correction Action authority.

The CFTC: voted to establish the Interest Rate Benchmark Reform Subcommittee under the CFTC’s Market Risk Advisory Committee (MRAC) to address issues surrounding a transition to risk-free reference rates; and entered into an arrangement with the Australian Securities and Investments Commission to share information through each country's FinTech initiatives.

FINRA announced that it plans to consolidate three separate examination and risk monitoring programs into a single, unified program.