Weekly Rewind...News from Your Regulators

The 2023 CSG Audit calendar is now open!!!

Contact us to schedule your 2023 Regulatory Compliance Reviews. Visit our website at complianceservicesgroup.com or email our Lead Auditor directly at tricia.briggs@complianceservicesgroup.com.

Bank Employee Convicted of Fraud

Former Bank Employee Convicted After Trial for Fraudulently Opening Bank Accounts - According to the evidence presented the trial, a customer service representative fraudulently opened 412 bank accounts in fake identities in exchange for cash bribes. Co-conspirators engaged in fraud that included fraud involving rental cars and the deposit of checks stolen from the incoming and outgoing mail of churches and other religious institutions, into the fraudulently opened bank accounts. 

From the FinCEN

Alert on Nationwide Surge in Mail Theft-Related Check Fraud Schemes Targeting the U.S. Mail - The Financial Crimes Enforcement Network issued an alert to financial institutions on the nationwide surge in check fraud schemes targeting the U.S. Mail. Fraud, including check fraud, is the largest source of illicit proceeds in the United States and is one of the AML/CFT National Priorities. In coordination with the United States Postal Inspection Service, FinCEN has identified red flags to help financial institutions detect, prevent, and report suspicious activity connected to mail theft-related check fraud.

NCUA Extends Interest Rate Ceiling

Letter to FCUA’s 23-FCU-02 – The NCUA published 23-FCU-02 Permissible Loan Interest Rate Ceiling Extended informing federally chartered credit unions that it voted to continue the temporary 18-percent interest rate ceiling for loans made by federal credit unions. The Federal Credit Union Act generally limits federal credit unions to a 15 percent interest rate ceiling on loans. However, the NCUA Board may establish a temporary, higher rate for up to 18 months after considering certain statutory criteria. The previously approved 18-percent interest rate ceiling expires on March 10, 2023. The January NCUA Board action extends the temporary 18 percent interest rate ceiling through September 10, 2024.


CFPB Publishes Analysis of Buy Now, Pay Later

Buy Now, Pay Later Borrowers’ Financial Profiles - The CFPB published a report analyzing the financial profiles of Buy Now, Pay Later borrowers. The report finds that Buy Now, Pay Later borrowers are more likely to be active users of other types of credit products like credit cards, personal loans, and student loans. They are also more likely to exhibit measures of financial distress than non-users. For example, Buy Now, Pay Later borrowers are more likely to be highly indebted or have revolving balances or delinquencies on their credit cards compared to consumers who do not use Buy Now, Pay Later products. Buy Now, Pay Later borrowers are also more likely to use high-interest financial services such as payday loans, pawn loans, and bank account overdrafts.

Crypto-Asset Market Vulnerabilities – The FDIC, OCC, and Federal Reserve issued a joint statement highlighting liquidity risks to banking organizations associated with certain sources of funding from crypto-asset-related entities and some effective practices to manage those risks.

Recent events in the crypto-asset sector have underscored the potential heightened liquidity risks presented by certain sources of funding from crypto-asset-related entities. The joint statement highlights key liquidity risks and some effective practices to monitor and appropriately manage those risks.

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