Insight

Washington Report 360 | April 29, 2022

Agency leadership. Financial crimes risks. Nonbank supervision.

Amy S. Matsuo

Amy S. Matsuo

Regulatory and ESG Insights Leader, KPMG US

+1 919-664-7100

Key Highlights

Agency leadership. The Senate confirms Lael Brainard to serve as Vice Chair of the Federal Reserve Board for a period of four years.

Financial crimes risks. Treasury supports FATF’s strategic priorities to fight corruption, including transparency of beneficial ownership; DOJ reiterates its focus on sanctions and export restrictions enforcement and outlines legislative proposals to curb sanctions evasion; and NYDFS releases new guidance on expectations for preventing and managing suspicious activities in the virtual currency industry.

Nonbank supervision. The CFPB announces it will be utilizing its supervisory authority to examine nonbank financial firms operating outside of its existing nonbank supervision program when the CFPB determines the firms pose risk to consumers; CFPB testifies it is reviewing risks related to Big Tech and Big Data, including privacy, fraud, and discrimination.

Climate-related risks. FSB (FRB and SEC are members) published an interim report and recommendations to promote a consistent supervisory and regulatory approach across sectors and jurisdictions for monitoring, managing, and mitigating risks from climate change.

Financial services regulatory and policy news

Banking

  • OCC:
    • Issued a statement on standards for stablecoins
    • Launched a quarterly discussion series on consumer financial health; first event will feature minority ownership of cryptocurrency
  • CFPB:
    • Announced that it is invoking dormant authority to examine nonbank financial companies posing risks to consumers, and updated a procedural rule to authorize public release of certain risk determination information
    • Provided testimony on the CFPB’s Semi-Annual report to Congress; Senate testimony here, House testimony here
    • Issued a blog informing consumers on protections when sending money abroad

Capital Markets

Other

 

  • Treasury:
    • FinCEN announced agreement of strategic priorities and efforts to fight corruption by the Financial Action Task Force (FATF)
    • OFAC issued General License 13R and 15L in relation to Russia/Ukraine
  • U.S Congress:
  • Department of Justice:
  • FTC:
    • Proposed amendments to the Telemarketing Sales Rule including an NPR focused on small business protections and an ANPR seeking information on certain “tactics and scams”
  • NY DFS:
    • Issued new guidance on preventing and managing suspicious activities in virtual currency
  • FHFA:
    • Announced Fannie Mae's and Freddie Mac's Duty to Serve Underserved Markets Plans for 2022-2024
  • FSB:
    • Published a report on the interaction between US dollar funding and external vulnerabilities in emerging market economies
    • Published an interim report and consultation on supervisory and regulatory approaches to climate related risks
  • BIS:
    • Announced a new G20 TechSprint directed toward wholesale and retail CBDCs


Industry news headlines

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