Washington Report 360 | September 30, 2022

Enforcement Actions. Financial Crime. AML. Climate risk.

Key Highlights

Enforcement Actions. The SEC and CFTC charged 16 of the largest banks and brokerage firms and their affiliates with recordkeeping failures relating to the retention of electronic communications and use of unapproved communication methods; fines totaled $1.8 billion

Financial Crime. FinCEN adopted a long-awaited final rule on beneficial ownership; two additional and related rules now anticipated. (See KPMG Regulatory Alert, here)

AML. FINRA revised its Sanction Guidelines for broker-dealer violations of the securities rules, including new anti-money laundering and penalties guidelines.

Climate risk. The Federal Reserve will launch a pilot climate scenario analysis in 2023 with six large financial institutions.

Financial services regulatory news
SEC	Enforcement actions against: Multiple firms for recordkeeping failures, including electronic communications Repeat offender of FCPA violations Company for allegedly misleading investors about its operations
CFTC	Charged multiple firms for recordkeeping failures, including electronic communications Market Risk Advisory Committee meeting discussing digital asset markets, investor and consumer protections, and climate-related market risks
FINRA	Revised sanction guidelines for broker-dealer violations of securities rules, including new AML and penalties guidelines
Interagency	FRB, FDIC, OCC, and NCUA joint statement on supervisory practices regarding financial institutions affected by hurricanes Fiona and Ian
FRB	Requests for comment on updates to: Operational risk-management requirements for certain FMUs Commercial real estate loan accommodations for borrowers Final supervisory framework for supervised insurance organizations Speech on The New Landscape for Banking Competition Announced 2023 launch of pilot climate scenario analysis exercise with six large banks NY Fed: Blogs on Federal Student Loan Forgiveness updates and Short-Dated Term Premia and the Level of Inflation Event on The Role of FinTech in Unsecured Consumer Lending to LMI Individuals
FDIC	Speech on community banking
CFPB	Supervisory highlights on student loan servicers and university-owned lenders Blog on potential impacts of high vehicle costs on Americans with deep subprime scores Enforcement actions against: An online lender for alleged violations of the Military Lending Act A depository institutions for alleged UDAAP violation related to overdraft fees
Treasury	Speech investment in climate resiliency and the Inflation Reduction Act FinCEN final rule for beneficial ownership reporting; related statement
FHFA	Annual report on low-income housing and community development activities Proposed amendments to its Duty To Serve Underserved Markets regulation
HUD	FHA expansion of credit assessment factors for first-time homebuyers to include positive rental history
BIS	Bulletin on Global supply chain disruptions: evolution, impact, outlook Working paper on Emerging market bond flows and exchange rate returns Quarterly review highlighting inflation and market fluctuations