Washington Report 360 | September 18, 2020

FRB stress tests; CFPB ANPR small business data collectionFinCEN ANPR for proposals to mendments to AML; Attetion to cryptocurrency

Amy S. Matsuo

Amy S. Matsuo

Regulatory and ESG Insights Leader, KPMG US

+1 919-664-7100

Key Highlights

  • FRB released two hypothetical scenarios for a second round of stress tests to be conducted this year. FRB will release firm-specific results for these tests. FRB states that is will announce by the end of September whether restrictions on dividends and share buybacks will be extended into the fourth quarter.
  • CFPB released an advanced notice of proposals for small business data collection.
  • FinCEN released an ANPR outlining proposals for amendments to the AML requirements.
  • Digital assets and cryptocurrencies gained increased attention at the state level, including a cryptocurrency firm that has obtained a “special purpose depository institution” state bank charter, and a CSBS initiative to provide one exam to satisfy all state requirements for national payments and cryptocurrency firms.

Financial services regulatory and policy news


  • FRB:
    • Released two new hypothetical scenarios for the second round of stress tests due to COVID-19 uncertainty
    • Updated Documents and Certifications for the Municipal Liquidity Facility and provided testimony before Congress about the facility
  • FDIC:
    • Adopted a plan to restore the Deposit Insurance Fund reserve ratio and released a statement
  • CFPB:
    • Released an outline of proposals being considered for small business lending data collection and reporting

Capital markets

  • SEC:
    • Adopted rule amendments to enhance retail investor protections and modernize quotations for OTC securities
  • CFTC
    • Approved three final rules revising swap data recordkeeping and reporting, dissemination and public reporting as well as a final rule permitting non-U.S. DCOs to register with CFTC
  • FINRA:
    • Released a podcast on efforts to augment its examination and risk monitoring program with data analytics and technology
    • Issued filing guidance for public offering reviews
  • CSBS:
    • Announced the launch of a program providing nationwide payments and cryptocurrency firms with a single comprehensive exam to satisfy all state regulatory requirements
  • FinCEN:
    • Published an ANPR seeking comment on amendments to the BSA/AML requirements, including adding an explicit requirement for a risk assessment process and publication of a national list of AML priorities
  • GAO:
    • Issued a report on efforts to promote diversity and inclusion at Fannie Mae and Freddie Mac; the House FS Committee released a related statement
    • Released a report on critical infrastructure protection and efforts to track cybersecurity risk mitigation in the financial sector
  • BIS:
    • Issued its quarterly review featuring articles on the financial markets during COVID, cross-border links between banks and non-banks, and a ratings system for green bonds and carbon emissions

Industry news

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