Key Highlights
- FinCEN published AML/CFT priorities as required by the AML Act; financial institutions will be expected to incorporate the priorities into their risk-based AML/BSA compliance programs until the effective date of forthcoming regulations.
- An online investment brokerage firm entered into an enforcement action with FINRA over trade order flow and order access; the SEC regulatory agenda released in June focuses on several of the allegations in the consent order. (See KPMG Special Alert here).
- Focus on racial and economic equity seen in House FS Committee hearings, FDIC financial inclusion conference, CFPB data reports, and FHFA Fair Lending Policy.
- CFPB finalized rules to temporarily ease foreclosure requirements for certain homeowners economically impacted by COVID-19; FHFA will prohibit Fannie Mae and Freddie Mac to initiate foreclosures until the CFPB rule takes effect at the end of August.
Financial services regulatory and policy news
Banking
- Federal banking agencies (FRB, OCC, FDIC):
- Issued the "Architecture, Infrastructure, and Operations" booklet of the FFIEC Information Technology Examination Handbook.
- Issued an Interagency Statement on FinCEN’s AML/CFT Priorities.
- FRB:
- Spoke about CBDCs and the U.S. payment system.
- OCC:
- Reported that first-lien mortgage performance declined in Q1 2021.
- FDIC:
- Outlined a modified approach to implementing its Insured Depository Institution Resolution Planning Rule.
- Sponsored a conference on technology and financial inclusion.
- CFPB:
- Finalized temporary rules to facilitate the expiration of federal foreclosure protections.
- Reported about commercial credit reporting on consumer credit reports.
- Published a data point report on “Asian Americans and Pacific Islanders in the Mortgage Market”.
- Released a Complaints Bulletin on COVID-19-related complaints.
Capital Markets
- SEC:
- Spoke about the role of the Board of Directors in climate and ESG.
- CFTC:
- Issued an interpretation concerning capital and financial reporting obligations for swap dealers and major swap participants.
Other
- House:
- Passed a bill that would require financial institutions to report LGBTQ data to the CFPB.
- Committee on Financial Services conducted hearings on racial equity, credit reporting, crypto, and climate risk.
- Treasury:
- FinCEN published AML/CFT priorities.
- FinCEN determined to begin rulemaking to establish a no-action letter process for AML/CFT inquiries.
- FHFA:
- Announced mortgage servicers will be prohibited from making most first filings for foreclosure before new CFPB rules take effect.
- Issued a Policy Statement on Fair Lending and related quarterly reporting for Fannie Mae and Freddie Mac.
- BIS:
- Released its Annual Economic Report for 2021.
- Published technical amendments to the standard on minimum haircut floors for securities financing transactions.
- FSB:
- Sought feedback on policy proposals to enhance money market fund resilience.
- IOSCO:
- Published recommendations on sustainability-related practices, policies, procedures, and disclosure in asset management.
- FATF:
- Advanced work on virtual assets, proliferation finance, digital transformation, and peer member assessments.
- Published a report on money laundering from environmental crime.
Insurance
- IAIS:
- Issued a statement on the transition away from LIBOR.
- Published a phase 1 report on the Resolutions to Public Consultation Comments on Development of Liquidity Metrics.
Industry news headlines
(Some links may require subscription)
- Online brokerage firm agrees to pay $70 million to settle regulatory investigation (WSJ).
- Acting CFPB Director Dave Uejio nominated for HUD post (American Banker).
- All eyes on DOL plan to revisit fiduciary rule (Pensions & Investments).
- Student loan servicers fear 1-2 punch from CFPB, Education Dept (American Banker).
- Congress relaunches crackdown on bank overdraft fees (CNN)
- Fintechs seek CFPB guidance on making AI-based lending fair (American Banker)
