Proposed revisions to the CRA; OCC released its Semiannual Risk Perspectives; Focus on virtual currencies
The FDIC and the OCC approved proposed revisions to the CRA regulations to expand qualifying credit, add assessment areas based on concentrations of retail domestic deposits, and provide small bank flexibility. The FRB did not participate in the proposal but has stated the goal is to participate in a final interagency rule.
The OCC released its Semiannual Risk Perspectives highlighting operational, credit, interest rate, strategic, and LIBOR transition risks with cyber threats as a key emerging risk. (Please refer to KPMG’s Regulatory Alert on 2020 federal supervisory priorities, linked above.)
Focus on virtual currencies is evidenced by proposals for regulatory regimes published by the NY DFS and the BCBS, and also a report by FinCEN regarding related suspicious activity reporting. Regulatory focus on BSA/AML and KYC compliance generally, as noted in the OCC’s Semiannual Risk Perspectives and reports previously released by the FRB and FSOC.